Former Governor Larry Hogan released the following statement. “Today is a sad and unfortunate day for Maryland that was entirely avoidable. The tax hikes proposed would cripple Maryland’s economy and already struggling Marylanders. They are the exact opposite of the approach we took for eight years to cut taxes and create a record surplus. I am calling on Governor Moore to take a stand: it’s time to reverse course and return to fiscal sanity.”
As of March 20th, 2025, the Senate has yet to sign off on the transportation related proposals, however, both the House and the Senate have agreed to a roughly $400 million package for transportation. The two chambers differ on the specifics of reaching that number, but are expected to come to an agreement before the session ends on April 7, 2025.
The House could have the budget on the floor for a preliminary vote early next week.
Governor Wes Moore Press Release: Wes Moore, Senate President Bill Ferguson, House Speaker Adrienne A. Jones, and the Maryland General Assembly’s budget leadership announced an agreement on the framework for the final FY 2026 budget.
The framework eliminates the $3.3 billion structural deficit and creates a positive cash balance—marking an important first step forward in securing Maryland’s long-term fiscal health.
“As dysfunction and chaos unfold in Washington, here in Maryland, we’ve been moving in partnership. Together, we have arrived at a common-sense agreement that meets each of the three goals I established at the start of session—reform the tax code and not on the backs of working families, grow and diversify the economy, and invest in our people,” said Gov. Moore. “I want to thank our legislative leaders for their collaboration throughout these negotiations. Together, we will continue to protect Marylanders, as we confront crisis with courage.”
The governor was joined by Lieutenant Governor Aruna Miller, Senate President Bill Ferguson, House Speaker Adrienne A. Jones, House Ways and Means Committee Chair Vanessa Atterbeary, House Appropriations Committee Chair Ben Barnes, and Senate Budget and Taxation Committee Chair Guy Guzzone for the announcement.
“Today, we announced a State Budget framework that strikes what I believe is the right balance of fiscal responsibility and protects our core social safety net here in the State of Maryland,” said Senate President Bill Ferguson. “We must acknowledge the tough choices that come with responsible budgeting, and under this proposal, we are cutting at least $2.3 billion to navigate economic uncertainties. While these cuts are difficult, they are necessary to maintain fiscal stability for Maryland.”
“Today, I proudly joined Governor Moore and Senate President Ferguson to address the most challenging budget I have ever faced in the legislature,” said House Speaker Adrienne A. Jones. “This budget strikes the right balance between cuts and revenue to resolve our budget deficit, gets us through the term with a healthy cash surplus, and protects our priorities. As Donald Trump and his administration continue to decimate our workforce and wreck our economy, Maryland Democrats will fight back and use every budget tool available to protect our most vulnerable citizens.”
“This budget represents hard choices, choices that are necessary to maintain stability, fairness and to do the right thing. Democrats were able to come together and make the difficult choices required to maintain our healthcare, transportation and schools; choices necessary to align our tax code with our current reality; and choices required as leaders,” said House Ways and Means Committee Chair Vanessa Atterbeary. “While it was difficult to grapple with making cuts and increasing revenues, I’m glad Democratic leadership could work together to continue to uplift Marylanders while many are losing their jobs, funding for critical services are being slashed, and there is so much uncertainty due to the federal government.”
“At its core, the budget framework announced today is about stability, fairness, and partnership. It ensures that Maryland can continue investing in the future without relying on reckless cuts or short-term gimmicks,” said House Appropriations Committee Chair Ben Barnes. “At a time of deep uncertainty in Washington, we are taking a responsible, measured approach. This framework is about keeping our economy strong, fair, and responsive to the needs of working families—because unlike the dysfunction in Washington, here in Maryland, we know that responsible governing matters.”
“In Maryland, we protect our most vulnerable—and that’s what this agreement does,” said Senate Budget and Taxation Committee Chair Guy Guzzone. “This budget framework secures critical supports for our children, our seniors, our students, Marylanders with disabilities, and families living in poverty. At a moment of challenge, as officials in Washington take aim at families that are struggling, my colleagues and I are coming together to move in partnership and stand up for our people.”
NOMOORE.ORG, these are the planned tax hikes and increases in the proposal.
NEW TAX HIKES AND FEES
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Moore’s Doorstep Delivery Tax (Indexed to Inflation) – 75-cent tax on every retail delivery, the highest in the nation, projected to raise $225M annually—and it will automatically increase every year, just like the gas tax.
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$100M Hospital Tax Hike – Raises the Medicare reimbursement tax by $100M this year, with another increase in 2026.
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Car Trade-In Tax Grab – Eliminates 6% titling tax credit for trade-ins unless the replacement car costs $15K or less, raking in $140M per year.
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Table Games Tax Increase – Casino tax jumps from 20% to 25%.
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Sports Betting Tax Doubled – Tax on mobile sports gambling jumps from 15% to 30%.
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Cannabis Tax Hike – Marijuana tax increasing from 9% to 15% starting in 2026.
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Eliminating Itemized Deductions – Strips taxpayers of key deductions for mortgage interest, charitable donations, etc., forcing more people to pay higher taxes.
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Income Tax Hike on Top Earners – Raises the income tax on individuals earning $500K+ and $1M+, hitting small businesses and job creators.
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Capital Gains Tax Hike – Adds 1% surcharge on capital gains for individuals with incomes over $350K.
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Small Business Tax (B2B Tax) – NEW 2.5% tax on businesses that buy legal, accounting, marketing, IT, and other professional services. A $1 BILLION TAX HIKE ON JOB CREATORS.
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Online Gambling Tax – Expanding gambling to online poker & blackjack, raising $200M+ per year.
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Sugary Drinks Tax – 2-cent-per-ounce tax on sugary drinks—including diet sodas with artificial sweeteners—raising $500M per year.
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Snack Tax – 6% sales tax on salty snacks—a failed 1990s policy they’re trying to bring back.
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Firearm Tax – New 11% tax on firearm sales, raising $15M per year.
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Sales Tax on Vehicle Services – NEW 6% sales tax on auto repair, towing, air transportation, and limo services, raising $500M per year.
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Property Tax Hike – Increase in the state property tax by 1 cent per $100 of value, raising $95M per year.
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Transfer Tax Hike – Increase on high-value property sales tax from 0.5% to 1%, raising $40M per year.
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Vehicle Excise Tax Increase – Increase from 6% to 6.75%, raising $200M per year.
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Eliminating Tax-Free Back-to-School Week – Scrapping tax-free shopping on school supplies, raising $7M per year.
TRANSPORTATION FEE HIKES
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Transportation Bond Debt Expansion – Increases borrowing limit from $4.5B to $5B, adding $500M in new debt.
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Vehicle Registration Fee Hike ($91M/year) – Increases up to 33% for some vehicles, on top of last year’s $50M increase.
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Vehicle Emissions Inspection Fees (VEIP) ($36M/year) – More than doubles to $30 for testing and late fees.
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MVA Cost Recovery Fee ($60M/year) – Allows MVA to charge 115% of operating costs, including new installment fees for payment plans.
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Mileage-Based Travel Tax – NEW $182 per year tax for cars getting 25+ MPG, on top of gas taxes.
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Toll Hikes Coming – The Maryland Transportation Authority has warned toll increases are expected by 2027.
CUTS & COST SHIFTS
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Shifting Assessment Costs – Forces counties to cover $30M in property assessment costs.
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Teacher Pension Cost Shift – Dumps $220M per year in teacher pension costs onto counties.
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Borrowing from County Income Tax Reserves – $230M taken from counties, repaid without interest over 10 years (starting FY29).
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MOE (Maintenance of Effort) Mandates – Counties must increase school funding by $400M per year, while the state cuts its own contributions.
OTHER CUTS & DELAYS
- Driver’s Ed Defunded – Cuts $2M from public school driver’s education programs.
- MTA Electric Bus Mandate Delayed – Pushes back all-electric bus requirements by 5 years, despite climate promises.
