As Maryland state leaders begin discussing the budget and revenues, while some state officials say the state is heading in the right direction, some Republicans argue that is due to increased fees and taxes.
In light of the last budget cycle, with the state working to increase revenues to deal with a $3 billion deficit, many new fees and taxes went into effect in July. Some of those increased fees apply to vehicle excise taxes, titling and registering a vehicle, vehicle emissions inspections and tire fees.
Residents are also facing increased cannabis, sports betting taxes, as well as vending machine taxes.
The 3% tech tax also took effect July 1.
“Our state’s fiscal picture looks ‘OK’ right now for one simple reason—Democrats in Annapolis raised taxes and fees on hardworking families and small businesses in the last legislative session. There were no meaningful, long-term reforms to curb runaway spending, no effort to grow our economy, and no real plan to keep Maryland competitive. A budget built on higher taxes and higher fees is not a sign of strength—it’s a sign of weakness,” said Sen. Stephen Hershey.
“The Democratic supermajority continues to push policies that drive people and businesses out of Maryland,” said Senate Minority Whip Justin Ready.
“From the misguided tech tax, to higher MVA fees, to layers of new mandates on job creators, the message is clear: Annapolis is more interested in growing government than growing opportunity. We cannot tax and fee our way to prosperity. What we need are policies that actually grow the economy, encourage job creation, and keep Maryland families here.”
The cost of energy has also increased in the last year, which has put a major strain on many residents. While customer bills have been going up for a variety of reasons, the costs are likely to continue rising.
Governor Moore and state leaders like Senate President Bill Ferguson previously announced an energy rebate customers will be getting sometime soon, a total of two payments averaging about $40 each, depending on how much energy a customer uses.
“I wish there were more disposable dollars to be able to rebate,” Ferguson said.
While it is not clear if state leaders will impose any additional taxes or fees next year, some residents said they are bracing themselves for that possibility. For some residents, they said state increases, coupled with energy increases, and other cost-of-living related increases, are unsustainable moving forward.
“It seems like everyone is trying to find an excuse to make more money some kinds of way,” said Anthony, a Baltimore resident.
“I would feel screwed up figuratively speaking, because you can barely get by as it is,” said Gary, another Baltimore resident.