Transportation - Vehicle Excise Tax - Rental Vehicles

HB 898 removes an exemption that previously allowed rental vehicles to be exempt from Maryland's vehicle excise tax. The bill specifies that rental vehicles will now be taxed at 3.5% of their fair market value (down from the standard 6% rate for most vehicles), directly affecting rental car companies operating in Maryland. This change takes effect July 1, 2025, and modifies existing tax code sections to reflect the new rate for rental vehicles. The policy change removes a prior tax exemption, making rental vehicles subject to the excise tax.