Joint Republican Caucus Peels Back Layers of Governor Moore’s Budget Proposal

ANNAPOLIS, MD – A week and a day after Governor Wes Moore presented his budget proposal for Fiscal Year (FY) 2026, House and Senate leaders today discussed the myriad of tax and fee increases and spending revealed in the ongoing budget analysis.

“After taking time to thoroughly review Governor Moore’s budget proposal, it is evident that, as introduced, it is not a good deal for Marylanders,” said Senate Minority Leader Steve Hershey. “Although we’ve heard appealing terms such as ‘growing the economy’ and ‘tax cuts,’ this budget ultimately increases the cost of living for all Maryland residents and fails to tackle the more significant budget deficits looming in the future.”

Since Governor Moore took office, his Administration, in partnership with the General Assembly, has passed or approved hundreds of individual increases in taxes and fees through legislation, regulation, and other means.  Budget analysis from the Department of Legislative Services shows 18 instances of new or increased taxes and fees, in this budget proposal alone. There are additional revenue-increasing fee actions within the Departments of Agriculture and the Environment that are still being reviewed.

“Governor Moore’s budget relies primarily on new or increased taxes and new or increased fees to cover the shortfalls,” said House Minority Leader Jason Buckel. “Wherever there appears to be a tax cut, there is a new tax or an increased tax to take its place costing Marylanders, and businesses hundreds of millions more.”

A number of the new and increased taxes and fees hit Maryland drivers. The Governor’s budget plan accelerates the increase in registration fees the General Assembly passed last year. It also establishes an administrative fee for Marylanders who need to pay these higher fees in installments. One of the most impactful actions is the Governor’s choice to eliminate the trade-in allowance on vehicle purchases over $15,000.

In Maryland, the average trade-in value of a vehicle is $20,000, reducing the consumer’s excise tax by $1,200.  The business model for car dealerships relies heavily on the trade-in and resale of trade-in vehicles.

“Governor Moore’s choice to limit the trade-in allowance amounts to an average $1,200 tax increase on individuals purchasing a vehicle,” said House Minority Whip Jesse Pippy.  “It happens at the same time we’re bludgeoning drivers with exorbitant registration fees and charging them extra when they need to pay their fees in installments. These increases might be easier for Maryland drivers to swallow if this money was going to roads, but for the most part, it is not.”

Maryland drivers contribute nearly 50% of the revenues to the Transportation Trust Fund (TTF), through the gas tax, vehicle excise tax, and MVA registration and other fees. Less than a quarter of the TTF spending goes to roads and bridges, while 53% of the funds go to transit.

“Governor Moore’s proposal sadly continues the Annapolis establishment’s bad habit of leaving taxpayers with the bill for their overspending,” said Senate Minority Whip Justin Ready. “Going back to taxpayers again is unacceptable when they are already being crushed by our high cost of living and one of the highest tax burdens in the country. We actually can cut our way to prosperity by putting state government on a diet and reducing spending to keep more money in Marylanders’ pockets.”

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