Bill would close ‘tax loophole,’ dedicate ‘recouped revenue’ to Maryland’s HBCUs

Del. Stephanie Smith represents District 45 in the Maryland House of Delegates. (Joshua McKerrow/Capital Gazette)

“About 25 years ago, the legislature became convinced rental car companies should not have to pay titling tax on their fleet purchases and the state would come out ahead by charging an inflated rental use tax to each individual consumer. This arrangement is problematic for several reasons, but the most egregious is that it has failed to recoup the promised revenue. Today, according to the Maryland Department of Budget Management, this loophole adds up to nearly $60 million in lost tax revenue each year. Senator Hayes and I propose to eliminate the fleet purchase tax exemption, lower the counter sales tax consumers pay for rentals and apply the recouped revenue to the funding of Maryland’s HBCUs.”

-Del. Stephanie Smith via Baltimore Sun

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