MD HB1374

Repeals the existing annual surcharge for zero-emission vehicles ($125) and plug-in electric drive vehicles ($100), replacing 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 to operate a fuel-efficient vehicle, with plug-in electric vehicles paying the full 85% and alternative fuel/fuel-efficient vehicles paying based on the difference from a baseline

Creates a voluntary Mileage-Based User Fee Program allowing vehicle owners to pay based on actual miles driven instead of the flat annual fee, with the mileage-based fee capped at the annual highway use fee amount

Establishes a Highway Use Fee Account within the Transportation Trust Fund, with all revenue dedicated solely to the Maryland Area Regional Commuter (MARC) Rail Service and protected from transfer to the General Fund

Requires the Department of Transportation to have a fully operational mileage-based user fee program by July 1, 2029, with data privacy protections including limits on data use, disclosure, and retention; takes effect July 1, 2026