Maryland Residents Face New Taxes and Fees Starting July
A new wave of state and local tax and fee increases took effect on July 1, potentially impacting the monthly budgets of Marylanders. These hikes come on the heels of Baltimore Gas and Electric’s utility fee increases in June.
Here’s a breakdown of what’s changed, and what may now cost you more:
Vehicle Registration Fees
Starting this month, Marylanders will pay more to register or renew vehicle tags. The Maryland Vehicle Administration (MVA) has adjusted rates for the second year in a row. Drivers now have the option to pay annually instead of committing to a two- or three-year term.
New two-year registration fees include:
- $383 for passenger vehicles over 3,700 lbs (up from $323)
- $210 for motorcycles (up from $190)
- $111 for historic vehicles (up from $91)
A full list of updated fees is available on the MVA website.
Water and Sewer Rate Increases
Baltimore County water rates rose by 4.9%, continuing a trend seen in 2021 and 2023. County officials say the increase helps narrow the price gap between city and county customers since both share the same water system.
Earlier this year, Baltimore City residents saw separate hikes, about 3% on water bills and 15% on sewage services.
New Tech Services Tax
A 3% tax on digital and technology services is now in effect statewide. Businesses offering services like cloud storage, web hosting, data entry, and even cryptocurrency mining must now pay the fee, which is expected to be passed along to customers.
Additional Increases
As part of broader efforts to balance the state budget, lawmakers approved several more changes:
- Cannabis sales tax increased from 9% to 12%
- Sports betting tax rose from 15% to 20%
- 6% sales tax now applies to vending machine purchases
These increases reflect state-level efforts to manage budget needs while adjusting to expanding industries like tech and cannabis.
Maryland Residents Face New Taxes and Fees Starting July was originally published on wolbbaltimore.com
