MD HB1457

Repeals the existing annual surcharge for zero-emission vehicles ($125) and plug-in electric drive vehicles ($100) and replaces it with a new annual highway use fee for alternative fuel vehicles, fuel-efficient vehicles (25+ mpg), and plug-in electric drive vehicles

Sets the highway use fee at 85% of the estimated motor fuel taxes that would be paid by a fuel-efficient vehicle, calculated using average annual miles traveled and current motor fuel tax rates

Establishes a voluntary Mileage-Based User Fee Program within the Department of Transportation, allowing vehicle owners to pay based on actual miles driven instead of the flat highway use fee

Requires the mileage-based program to include privacy protections limiting data use to program administration only, prohibiting individual data disclosure, and mandating limited data retention periods

Requires the Department of Transportation to establish a fully operational Mileage-Based User Fee Program by July 1, 2028, with the overall act taking effect July 1, 2025