# Tax - General (GTG)

## Title 9. Fuel Taxes

### Subtitle 1. Definitions

#### Section 9-101

(a) In this title the following words have the meanings indicated.

(b) "Aviation fuel" means:

  (1) aviation gasoline; or

  (2) turbine fuel.

(c)

  (1) "Aviation gasoline" means gasoline that is used to propel gasoline-powered aircraft and:

    (i) is invoiced as aviation gasoline; or

    (ii) is received, sold, stored, or withdrawn from storage by a person for the purpose of propelling gasoline-powered aircraft.

  (2) "Aviation gasoline" does not include gasoline used to propel a motor vehicle.

(d) "Clean-burning fuel" means, when used for motor vehicle propulsion:

  (1) natural gas;

  (2) liquefied natural gas;

  (3) liquefied petroleum gas;

  (4) hydrogen;

  (5) electricity; or

  (6) any other fuel at least 85% of which is one or more of the following:

    (i) methanol;

    (ii) ethanol;

    (iii) any other alcohol; or

    (iv) ether.

(e)

  (1) "Gasoline" means a product that:

    (i) is used as fuel in a spark ignited, internal combustion engine; or

    (ii) is designated as gasoline by the Comptroller.

  (2) "Gasoline" includes:

    (i) casinghead gasoline;

    (ii) absorption gasoline;

    (iii) other natural gasoline; and

    (iv) aviation gasoline.

(f) "Motor fuel" means:

  (1) gasoline; or

  (2) special fuel.

(g) "Motor vehicle" means a vehicle that:

  (1) is self-propelled;

  (2) is designed to be operated on a public highway; and

  (3) is not operated only on rails.

(h)

  (1) "Special fuel" means a product that is usable as fuel in an internal combustion engine.

  (2) "Special fuel" includes clean-burning fuel except electricity.

  (3) "Special fuel" does not include gasoline.

(i) "Turbine fuel" means Jet A, A-1, or B fuel that is used to propel turbine powered aircraft.

### Subtitle 2. Motor Carrier Tax

#### Section 9-201

(a) In this subtitle the following words have the meanings indicated.

(b)

  (1) "Commercial motor vehicle" means any motor vehicle used or maintained for the transportation of persons or property that:

    (i) has 2 axles and an operating or registered gross vehicle weight that exceeds 26,000 pounds;

    (ii) has 3 or more axles; or

    (iii) is used in combination with another vehicle and has an operating or registered gross combined weight that exceeds 26,000 pounds.

  (2) "Commercial motor vehicle" does not include:

    (i) a privately owned antique truck that:

      (1) is registered as a historic motor vehicle under Sec. 13-936 of the Transportation Article; and

      (2) displays appropriate registration plates that the Motor Vehicle Administration issues;

    (ii) a commercial motor vehicle that is operated:

      (1) by a state or a subdivision of a state;

      (2) by the United States;

      (3) by a joint unit of:

      (A) this State and the United States and other states; or

      (B) this State and another state;

      (4) by or for a state, political subdivision of a state, or private school as a school bus;

      (5) by a volunteer or paid fire department or rescue squad as fire or rescue equipment;

      (6) by a licensed vehicle dealer during a road test for sale, if the vehicle displays dealer registration plates that the Motor Vehicle Administration issues; or

      (7) by a person as a privately owned bus used only in the transportation system of a county, municipal corporation, special taxing district, or other political subdivision to transport the public on a regular schedule between fixed termini as those terms are defined in the Transportation Article;

    (iii) a multipurpose passenger vehicle as defined in Sec. 11-136.2 of the Transportation Article;

    (iv) a multipurpose passenger vehicle or truck that does not exceed 3/4 ton capacity when towing:

      (1) a camping trailer as defined in Sec. 11-106 of the Transportation Article; or

      (2) a travel trailer as defined in Sec. 11-170 of the Transportation Article; or

    (v) a farm truck as defined in Sec. 13-921 of the Transportation Article or a farm area motor vehicle as defined in Sec. 13-935 of the Transportation Article that has 2 axles and a registered or operating gross or combination weight of less than 40,001 pounds.

(c)

  (1) "Motor carrier" means a person who operates or causes the operation of a commercial motor vehicle on a highway in this State.

  (2) "Motor carrier" includes:

    (i) a lessor of a commercial motor vehicle who provides or buys the motor fuel used to operate the vehicle or pays for it as a part of rental or other costs; and

    (ii) a lessee whose lease entitles the lessee to receive a credit or refund for motor fuel that the lessor buys.

#### Section 9-202

(a) A tax is imposed on each motor carrier who operates or causes the operation of a commercial motor vehicle on a highway in this State.

(b) The tax under this section is imposed whether the commercial motor vehicle is:

  (1) owned by or leased to the motor carrier;

  (2) operated loaded or empty; or

  (3) operated for compensation or for no compensation.

#### Section 9-203

The motor carrier tax imposed under Sec. 9-202 of this subtitle does not apply to a commercial motor vehicle that:

(1) is operated by a motor carrier that leases the commercial motor vehicle from another motor carrier who provides or pays for the motor fuel; or

(2) is operated by a motor carrier that has obtained a trip permit under Sec. 9-219(c) of this subtitle.

#### Section 9-204

For each type of motor fuel used in the operation of a commercial motor vehicle on a highway in this State, the motor carrier tax rate is the motor fuel tax rate for that type of motor fuel in effect when the return period begins, for each gallon of motor fuel used.

#### Section 9-205

(a)

  (1) The Comptroller may enter into reciprocal agreements on behalf of this State, with the duly authorized representatives of any other state, that provide for:

    (i) fuel tax registration of vehicles by motor carriers;

    (ii) establishment of periodic fuel use reporting and fuel use tax payment requirements by motor carriers; and

    (iii) disbursement of money that is collected by the Comptroller and is due to other states based on:

      (1) mileage travelled and fuel used in those states; and

      (2) the respective registration fees of those states.

  (2) The Comptroller may not enter into any reciprocal agreement that would affect:

    (i) this State's motor carrier tax rate; or

    (ii) this State's registration fee for motor carriers.

(b) In exercising the authority granted under subsection (a) of this section, the Comptroller is expressly authorized to:

  (1) enter into regional or national fuel use tax agreements;

  (2) become a member of any regional or national conference, group, compact, or similar organization of motor carrier fuel use tax administrators; and

  (3) enforce the provisions set forth in any regional or national fuel use tax agreements.

(c) The agreement provisions shall apply to the fuel use taxation, registration, and reporting requirements of motor carriers subject to the provisions of the agreement without reference to or application of any other statutes of this State.

#### Section 9-207

(a) Except as provided in Sec. 9-208 of this subtitle, each motor carrier shall:

  (1) complete, under oath, and file a motor carrier tax return for periods that the Comptroller requires; and

  (2) provide other information that the Comptroller considers necessary to enforce this subtitle properly.

(b) To identify properly persons listed in a return, each motor carrier shall include in the return:

  (1) the Social Security number or other federal identifying number of the person; and

  (2) if the Comptroller requires, United States Department of Transportation (US DOT) identification number.

#### Section 9-208

(a) The Comptroller may exempt a motor carrier from filing a motor carrier tax return if:

  (1) the operations of the motor carrier are intrastate only;

  (2) the intrastate commercial motor vehicles of the motor carrier are registered (tagged) by the Motor Vehicle Administration to operate within the State; and

  (3) the exemption will not affect the enforcement of this subtitle adversely.

(b) A motor carrier is not required to report, on a motor carrier tax return, a commercial motor vehicle operated under a trip permit.

#### Section 9-209

(a) Each motor carrier shall keep, in the form that the Comptroller requires, records of the operations on which the motor carrier tax returns are based, including records that show the number of miles operated for each gallon of motor fuel.

(b) A motor carrier shall make the records required under subsection (a) of this section available for inspection by the Comptroller at any time during business hours.

(c) A motor carrier shall keep the records required under subsection (a) of this section for 4 years unless the records have been audited and, on written request that states the reasons for the request, the Comptroller authorizes early destruction.

#### Section 9-212

To compute the amount of motor fuel that a motor carrier uses to operate commercial motor vehicles on highways in the State, the motor carrier shall:

(1) compute its average fleet miles for each gallon of motor fuel as a fraction:

  (i) the numerator of which is the total miles that the motor carrier's entire fleet travels in all states; and

  (ii) the denominator of which is the total gallons of motor fuel used;

(2) determine the total miles the motor carrier's fleet travels on highways in this State; and

(3) divide the number computed under item (2) by the fraction computed under item (1) of this section.

#### Section 9-213

A motor carrier shall pay to the Comptroller the motor carrier tax computed by multiplying the tax rate under Sec. 9-204 of this subtitle by the gallons of motor fuel used, as computed under Sec. 9-212 of this subtitle, less any credit allowed under Sec. 9-214 of this subtitle.

#### Section 9-214

(a) A motor carrier may claim a credit against the motor carrier tax to the extent of the motor fuel tax that the motor carrier paid on motor fuel bought in the State.

(b) If the credit allowed under subsection (a) of this section for a return period exceeds the motor carrier tax due in the period, then, in accordance with regulations of the Comptroller, the motor carrier may:

  (1) apply the excess credit to the motor carrier tax due within the next 2 years; or

  (2) apply for a refund of the excess credit under Sec. 13-901 of this article.

#### Section 9-215

A motor carrier shall pay the motor carrier tax for a period with the return that covers the period, in accordance with regulations of the Comptroller.

#### Section 9-216

(a) The terms of a lease determine the primary liability of a lessor and lessee of a commercial motor vehicle for the motor carrier tax.

(b) If either the lessor or lessee with primary responsibility to pay the motor carrier tax fails to pay it in full, both are jointly and severally liable for:

  (1) complying with this subtitle; and

  (2) payment of any motor carrier tax due.

#### Section 9-219

(a)

  (1) Except as provided in paragraphs (2) and (3) of this subsection, a motor carrier shall obtain from the Comptroller an identification marker for each commercial motor vehicle of the motor carrier.

  (2) A motor carrier that operates commercial motor vehicles on the highways of this State may obtain trip permits instead of markers.

  (3) A motor carrier that registers (tags) all intrastate commercial motor vehicles with the Motor Vehicle Administration for operation within the State is not required to obtain identification markers for those commercial motor vehicles to operate in the State.

(b) To qualify for an identification marker, a motor carrier shall submit to the Comptroller an application on the form that the Comptroller requires.

(c)

  (1) By regulation, the Comptroller shall establish procedures to issue trip permits and to provide evidence of compliance with this subtitle.

  (2) To qualify for a trip permit for a commercial motor vehicle, a motor carrier shall pay to the Comptroller an amount rounded to the nearest dollar equal to the current motor carrier tax payable on 174 gallons of special fuel for each commercial motor vehicle.

  (3) Fees for trip permits are in lieu of the motor carrier tax.

(d)

  (1) A commercial motor vehicle identification marker is effective on an annual basis from January 1 through December 31 of each year.

  (2) A trip permit is valid for the 15 consecutive days shown on the permit and only for the specific commercial motor vehicle shown on the permit.

#### Section 9-220

(a) A motor carrier shall display the identification marker for each commercial motor vehicle as the Comptroller requires by regulation.

(b) An identification marker issued under this subtitle remains the property of the State.

(c) The Comptroller may recall an identification marker for a violation of this subtitle or a regulation adopted to carry out this subtitle.

(d) The Comptroller shall provide, by regulation, methods for identification of motor carriers to other motor carriers and the public.

#### Section 9-221

The Comptroller may issue a temporary authorization to a motor carrier to operate a commercial motor vehicle in the State if the Comptroller is satisfied that:

(1) the motor carrier does not have an identification marker or trip permit for the commercial motor vehicle;

(2) unforeseen circumstances require operation of the commercial motor vehicle; and

(3) a prohibition of operation would cause undue hardship.

#### Section 9-222

(a) In this Part IV of this subtitle, "police officer" means:

  (1) any uniformed police officer; or

  (2) any civilian employee of the Department of State Police or of the Maryland Transportation Authority Police Force assigned to enforce this Part IV of this subtitle or any rule or regulation adopted under this Part IV of this subtitle, but only while acting under written authorization of the Secretary of State Police.

(b)

  (1) Subject to the provisions of paragraph (2) of this subsection, any police officer shall have the authority to enforce this Part IV of this subtitle and any rule or regulation adopted under it.

  (2) A civilian employee of the Maryland Transportation Authority Police Force shall have the authority stated in paragraph (1) of this subsection only if the individual is:

    (i) acting under the immediate direction and control of a uniformed police officer; and

    (ii) certified by the Department of State Police to enforce this Part IV of this subtitle and any rule or regulation adopted under it.

#### Section 9-223

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Falsify" includes alter, counterfeit, duplicate, manufacture, construct, or forge.

  (3) "IFTA identification marker" means any license or decal required by law to be possessed by a motor carrier and displayed on a commercial motor vehicle under the interstate agreements authorized by Sec. 9-205 of this subtitle.

(b) A person may not knowingly:

  (1) falsify any IFTA identification marker or related document;

  (2) use, hold, possess, give away, or sell a falsified IFTA identification marker or related document; or

  (3) attempt to falsify or sell any IFTA identification marker or related document.

### Subtitle 3. Motor Fuel Tax

#### Section 9-301

(a) In this subtitle the following words have the meanings indicated.

(b)

  (1) "Blend" means to mix together any combination of:

    (i) alkylate;

    (ii) aromatic;

    (iii) cracked gasoline;

    (iv) natural gasoline;

    (v) polymer gasoline; or

    (vi) straight-run gasoline.

  (2) "Blend" does not include adding alcohol to gasoline.

(c)

  (1) "Dealer" means a person who engages in the business of a dealer.

  (2) "Dealer" includes:

    (i) the State when it engages in the business of a dealer; and

    (ii) a political subdivision of the State when the subdivision engages in the business of a dealer.

(d)

  (1) "Distributor" means a person who engages in the business of a distributor.

  (2) "Distributor" does not include:

    (i) a licensed dealer;

    (ii) a licensed special fuel seller;

    (iii) a licensed special fuel user;

    (iv) a licensed turbine fuel seller;

    (v) a marina; or

    (vi) a retail service station dealer.

(e)

  (1) "Engage in the business of a dealer" means to:

    (i) import any gasoline into the State;

    (ii) blend, in the State, any gasoline on which the motor fuel tax has not been paid;

    (iii) refine, in the State, any gasoline on which the motor fuel tax has not been paid; or

    (iv) acquire, in the State, any gasoline on which the motor fuel tax has not been paid, for:

      (1) export; or

      (2) wholesale distribution.

  (2) "Engage in the business of a dealer" does not include bringing gasoline into the State in the fuel supply tank of an aircraft, motor vehicle, or vessel.

(f) "Engage in the business of a distributor" means to buy for resale motor fuel on which the motor fuel tax has been paid from a licensed dealer, licensed special fuel seller, licensed special fuel user, or licensed turbine fuel seller.

(g)

  (1) "Engage in the business of a special fuel seller" means, with respect to special fuel other than turbine fuel, to:

    (i) import any special fuel into the State;

    (ii) sell, in the State, any special fuel on which the motor fuel tax has not been paid; or

    (iii) deliver, in the State, any special fuel on which the motor fuel tax has not been paid.

  (2) "Engage in the business of a special fuel seller" does not include bringing special fuel into the State in the fuel supply tank of a motor vehicle or vessel.

(h) "Engage in the business of a special fuel user" means to:

  (1) buy special fuel on which the motor fuel tax has not been paid; and

  (2) use it in a motor vehicle that is:

    (i) owned or operated by the special fuel user; and

    (ii) registered to operate on a public highway.

(i)

  (1) "Engage in the business of a turbine fuel seller" means to:

    (i) import any turbine fuel into the State;

    (ii) sell, in the State, any turbine fuel on which the motor fuel tax has not been paid; or

    (iii) deliver, in the State, any turbine fuel on which the motor fuel tax has not been paid.

  (2) "Engage in the business of a turbine fuel seller" does not include bringing turbine fuel into the State in the fuel supply tank of an aircraft.

(j) "License" means a license issued by the Comptroller under this subtitle to engage in the business of a dealer, distributor, special fuel seller, special fuel user, or turbine fuel seller.

(k) "Licensed dealer" means a person who is licensed to engage in the business of a dealer.

(l) "Licensed distributor" means a person who is licensed to engage in the business of a distributor.

(m) "Licensed special fuel seller" means a person who is licensed to engage in the business of a special fuel seller.

(n) "Licensed special fuel user" means a person who is licensed to engage in the business of a special fuel user.

(o) "Licensed turbine fuel seller" means a person who is licensed to engage in the business of a turbine fuel seller.

(p) "Marina" means a person who maintains a place of business where motor fuel is sold primarily to vessels.

(q) "Refine" means to make crude oil into gasoline or special fuel by changing the physical or chemical characteristics of the crude oil.

(r) "Retail service station dealer" means a person who operates a retail place of business where motor fuel is sold and delivered into the fuel supply tanks of motor vehicles.

(s)

  (1) "Special fuel seller" means a person who engages in the business of a special fuel seller.

  (2) "Special fuel seller" does not include:

    (i) a retail service station dealer who pays the motor fuel tax on special fuel to the supplier of the special fuel; or

    (ii) a marina that sells special fuel only to vessels.

(t)

  (1) "Special fuel user" means a person who engages in the business of a special fuel user.

  (2) "Special fuel user" does not include:

    (i) a person whose only storage for special fuel is the fuel supply tank of a motor vehicle;

    (ii) a volunteer fire or nonprofit volunteer rescue company that is incorporated in the State and buys special fuel from a licensed special fuel seller to operate fire fighting vehicles or equipment; or

    (iii) a person who pays the motor fuel tax on all special fuels to the supplier of the special fuels.

(u) "Turbine fuel seller" means a person who engages in the business of a turbine fuel seller.

#### Section 9-302

Except as provided in Sec.Sec. 9-303 and 9-304 of this subtitle, a tax is imposed on motor fuel.

#### Section 9-303

(a) The motor fuel tax does not apply to motor fuel that is exported or sold for exportation from this State.

(b) The motor fuel tax does not apply to special fuel:

  (1) containing dye and sold for uses other than in a licensed motor vehicle;

  (2) delivered into a tank used only for heating; or

  (3) used for any purpose other than propelling a motor vehicle or turbine-powered aircraft.

(c) The motor fuel tax does not apply to aviation fuel that is bought for use by:

  (1) a carrier engaged in the common carriage of individuals or property under Parts 121, 127, and 129 of the Federal Aviation Regulations;

  (2) an operator under Part 135 of the Federal Aviation Regulations if at least 70% of the aviation fuel is used in the common carriage of individuals or property;

  (3) the State;

  (4) a political subdivision of the State;

  (5) a unit or instrumentality of the United States government; or

  (6) a foreign government.

(d) The motor fuel tax does not apply to motor fuel that is bought by:

  (1) the Department of General Services for use by State agencies;

  (2) a county board of education for use in a school bus owned by the county board of education; or

  (3) a school bus operator under contract with a county board of education for use in a school bus used to transport the county's public school students.

#### Section 9-303.1

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Diplomatic mission" means a permanent mission to the United Nations and foreign embassies and consulates.

  (3) "Diplomatic personnel" means foreign embassy and consular officials, and foreign embassy and consular employees that have been certified by the U.S. Department of State.

(b) The motor fuel tax, pursuant to Sec. 9-305 of this subtitle, does not apply to the retail purchase of motor fuel that is bought for use by:

  (1) a diplomatic mission; or

  (2) diplomatic personnel.

(c) To receive an exemption from the motor fuel tax, a diplomatic mission or diplomatic personnel must:

  (1) establish its exempt status with the U.S. Department of State;

  (2) use a credit card that has been issued by an oil company licensed under Sec. 9-321 of this subtitle; and

  (3) certify to the United States Department of State that the diplomatic mission or diplomatic personnel has obtained and is covered by security that is in the form of and provides at least the minimum benefits applicable to security required for vehicles registered in this State under Title 17, Subtitle 1 of the Transportation Article.

(d) Under the provisions of the Foreign Mission's Tax Exemption Program, the U.S. Department of State must:

  (1) enter into an agreement with an oil company that wishes to participate in the Program; and

  (2) certify to an oil company that a diplomatic mission or diplomatic personnel is exempt.

(e)

  (1) An oil company that has issued an authorized credit card to a diplomatic mission or diplomatic personnel under agreement with the U.S. Department of State may:

    (i) bill a diplomatic mission or diplomatic personnel for any credit card purchases of motor fuel, exclusive of the motor fuel tax; and

    (ii) receive a refund or credit of the motor fuel tax.

  (2) An oil company may not allow an exemption from the motor fuel tax at the time of the retail sale of the fuel.

  (3) The amount of a refund or credit will be equal to the amount of the motor fuel tax that has been reimbursed directly or indirectly to the gasoline retailer or the amount of the motor fuel tax that the oil company has remitted to the Comptroller.

  (4) An oil company shall be required to verify the amount of a refund or credit that is based upon a credit card sale to a diplomatic mission or diplomatic personnel.

(f)

  (1) A tax exemption card issued to a diplomatic mission or diplomatic personnel by the U.S. Department of State may not be used to purchase motor fuel that does not include the motor fuel tax.

  (2) Notwithstanding any other provisions of this section, a tax exemption, a refund, a credit, or a reimbursement may not be granted if a diplomatic mission or diplomatic personnel purchases motor fuel without using an authorized credit card that has been issued by an oil company.

#### Section 9-304

The Comptroller may allow, by regulation, a licensed dealer, a licensed special fuel seller, or a licensed turbine fuel seller to omit the motor fuel tax on motor fuel sold to the United States or a unit of the United States.

#### Section 9-305

(a) Except as provided in subsection (b) of this section, the motor fuel tax rate is:

  (1) 7 cents for each gallon of aviation gasoline;

  (2)

    (23) 5 cents for each gallon of gasoline other than aviation gasoline;

  (3)

    (24) 25 cents for each gallon of special fuel other than clean-burning fuel or turbine fuel;

  (4) 7 cents for each gallon of turbine fuel; and

  (5)

    (23) 5 cents for each gasoline-equivalent gallon of clean-burning fuel except electricity.

(b)

  (1) In this subsection, "Consumer Price Index for All Urban Consumers" means the index published monthly by the Bureau of Labor Statistics of the U.S. Department of Labor that is the U.S. city average of all items in a basket of consumer goods and services.

  (2) The motor fuel tax rates specified in subsection (a)(2), (3), and (5) of this section shall be increased on July 1, 2013, and July 1 of each subsequent year in accordance with this subsection.

  (3) On or before June 1 of each year, the Comptroller shall determine and announce:

    (i) the growth in the Consumer Price Index for All Urban Consumers as determined by the Comptroller under paragraph (4) of this subsection; and

    (ii) the motor fuel tax rates effective for the fiscal year beginning on the following July 1 as determined by the Comptroller under paragraph (5) of this subsection.

  (4) The percentage growth in the Consumer Price Index for All Urban Consumers shall be determined by comparing the average of the index for the 12 months ending on the preceding April 30 to the average of the index for the prior 12 months.

  (5) Subject to paragraph (6) of this subsection, on July 1 of each year, each motor fuel tax rate specified in subsection (a)(2), (3), and (5) of this section shall be increased by the amount, rounded to the nearest one-tenth of a cent, that equals the product of multiplying:

    (i) the motor fuel tax rate in effect on the date of the Comptroller's announcement under paragraph (3) of this subsection; and

    (ii) the percentage growth in the Consumer Price Index for All Urban Consumers.

  (6)

    (i) If there is a decline or no growth in the Consumer Price Index for All Urban Consumers, the motor fuel tax rates shall remain unchanged.

    (ii) Any increase in the motor fuel tax rates under paragraph (5) of this subsection may not be greater than 8% of the motor fuel tax rate effective in the previous year.

  (7) The Comptroller shall require any person possessing tax-paid motor fuel for sale at the start of business on the date of an increase in the motor fuel tax under this subsection to compile and file an inventory of the motor fuel held at the close of business on the immediately preceding date and remit within 30 days any additional motor fuel tax that is due on the motor fuel.

#### Section 9-306

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Average annual retail price" means the 12-month average retail price per gallon of motor fuel purchased in the State determined in accordance with subsection (d) of this section.

  (3) "Sales and use tax equivalent rate" means the per gallon tax rate calculated based on a percentage of the average annual retail price of motor fuel in accordance with subsection (e) of this section.

(b) On or before December 1, 2015, June 1, 2016, and June 1 of each subsequent year, the Comptroller shall determine and announce:

  (1) the average annual retail price of motor fuel; and

  (2) the sales and use tax equivalent rate effective on the first day of the following month.

(c)

  (1) The sales and use tax equivalent rate shall be added to the motor fuel tax rates specified in Sec. 9-305(a)(2), (3), and (5) of this subtitle and collected in the same manner as the motor fuel tax.

  (2) Except as otherwise expressly provided by law, all references to the motor fuel tax in State law and regulations apply to the sales and use tax equivalent rate imposed under this section.

(d) The Comptroller shall determine the average annual retail price of motor fuel:

  (1) using data compiled by the Oil Price Information Service or another generally recognized and reliable source of information; and

  (2) based on prices for regular unleaded motor fuel, excluding federal and State taxes, reported during the 12 months ending on the last day of the second immediately preceding month.

(e) The Comptroller shall determine the sales and use tax equivalent rate by:

  (1) multiplying the average annual retail price by the percentage rate specified in subsection (f) of this section; and

  (2) rounding the product to the nearest tenth of a cent.

(f) The percentage rate used to calculate the sales and use tax equivalent rate shall be:

  (1) 4% for the determination made on December 1, 2015; and

  (2) 5% for the determination made on June 1, 2016, and June 1 of each subsequent year.

(g) The Comptroller shall require any person possessing tax-paid motor fuel for sale at the start of business on the date of an increase in the sales and use tax equivalent rate under this section to compile and file an inventory of the motor fuel held at the close of business on the immediately preceding date and remit within 30 days any additional tax that is due on the motor fuel under this section.

#### Section 9-308

(a) Except as provided in subsections (b) and (c) of this section, each dealer, special fuel seller, special fuel user, or turbine fuel seller shall complete, under oath, and file with the Comptroller a motor fuel tax return:

  (1) for each month in which the dealer, special fuel seller, special fuel user, or turbine fuel seller sells or uses motor fuel in the State:

    (i) by delivery, on or before the last day of the next month;

    (ii) by mail postmarked at least 2 days before the last day of the next month; or

    (iii) if, for cause, the Comptroller grants an extension, by delivery on or before the date that the Comptroller specifies; and

  (2) if the Comptroller so requires, by regulation, on other dates for each month in which the dealer, special fuel seller, special fuel user, or turbine fuel seller does not sell or deliver motor fuel.

(b) Each licensed Class B dealer shall complete, under oath, and file with the Comptroller a motor fuel tax return:

  (1) for each month in which the dealer receives gasoline in the State:

    (i) by delivery, on or before the last day of the next month;

    (ii) by mail postmarked at least 2 days before the last day of the next month; or

    (iii) if, for cause, the Comptroller grants an extension, by delivery on or before the date that the Comptroller specifies; and

  (2) if the Comptroller so requires, by regulation, on other dates for each month in which the dealer does not receive gasoline.

(c)

  (1) A special fuel user engaged in the business of agriculture shall complete, under oath, and file with the Comptroller a motor fuel tax return for periods and on dates as the Comptroller may specify by regulation.

  (2) The Comptroller may not require filings more frequently than monthly.

(d) A return shall state the total gallons of motor fuel received, sold, or used, during the period that the return covers, at each place of business in the State.

(e) For periods beginning after December 31, 2026, a person shall file a motor fuel tax return electronically.

#### Section 9-309

(a)

  (1) Each person who engages in the business of a dealer, distributor, special fuel seller, special fuel user, or turbine fuel seller shall keep for 4 years records of motor fuel that the person:

    (i) buys in the State;

    (ii) receives in the State;

    (iii) sells in the State;

    (iv) delivers in the State; or

    (v) uses in the State.

  (2) The records kept under this subsection shall include:

    (i) bills of lading;

    (ii) invoices; and

    (iii) any other pertinent record that the Comptroller requires to administer the laws that relate to the motor fuel tax.

(b) A person required to keep records under subsection (a) of this section shall make the records available for inspection by the Comptroller at any time during business hours.

(c)

  (1) The Comptroller may charge a person for the reasonable travel and other expenses of inspecting records required to be kept under subsection (a) of this section, if:

    (i) the Comptroller decides that the inspection is necessary; and

    (ii) the person does not make the records available in this State.

  (2) If a person does not pay charges assessed against the person under this subsection within 30 days after receipt of a bill for the charges, the Comptroller may:

    (i) sue to collect the charges; or

    (ii) cancel the license, if any, of the person in accordance with Sec. 9-330 of this subtitle.

#### Section 9-310

(a) Each dealer, distributor, special fuel seller, or turbine fuel seller who sells motor fuel shall give the buyer an original invoice that includes:

  (1) the name under which the Comptroller licenses the seller; and

  (2) a statement:

    (i) of the amount of motor fuel tax charged; or

    (ii) if tax is not charged, that the "Maryland motor fuel tax is not included".

(b) Unless the information required by subsection (a) of this section appears on the invoice for a shipment of motor fuel from a dealer, distributor, special fuel seller, or turbine fuel seller, a person may not accept the shipment, pay for it, or offer it for sale.

(c)

  (1) A person who sells motor fuel in violation of any provision of subsection (b) of this section shall pay twice the motor fuel tax due.

  (2) Any other person who violates any provision of subsection (b) of this section shall pay the motor fuel tax due.

#### Section 9-314

(a) The motor fuel tax on gasoline shall be paid by:

  (1) the licensed Class B dealer who first receives gasoline imported into the State;

  (2) any other dealer who:

    (i) uses the gasoline; or

    (ii) first sells the gasoline in this State to a buyer other than a licensed dealer authorized to acquire gasoline, in accordance with Sec. 9-322 of this subtitle, without paying the motor fuel tax; or

  (3) any other person who acquires gasoline on which the motor fuel tax has not been paid.

(b) The motor fuel tax on special fuel other than turbine fuel shall be paid by:

  (1) a special fuel seller who delivers that special fuel into a tank from which a motor vehicle can be fueled unless the person who uses or resells the special fuel has an exemption certificate that authorizes the person to acquire special fuel, in accordance with Sec. 9-322 of this subtitle, without paying the motor fuel tax;

  (2) a special fuel user who uses that special fuel in a motor vehicle that is owned or operated by the special fuel user and registered to operate on a public highway; or

  (3) any other person who acquires that special fuel unless:

    (i) the motor fuel tax on that special fuel has been paid; or

    (ii) the person has an exemption certificate that authorizes the person to acquire special fuel, in accordance with Sec. 9-322 of this subtitle, without paying the motor fuel tax.

(c) The motor fuel tax on turbine fuel shall be paid by:

  (1) the turbine fuel seller who delivers the turbine fuel into the fuel supply tank of a turbine-powered aircraft; or

  (2) any other person who acquires turbine fuel on which motor fuel tax has not been paid unless the person has an exemption certificate that authorizes the person to acquire turbine fuel, in accordance with Sec. 9-322 of this subtitle, without paying the motor fuel tax.

(d) A person required to pay motor fuel tax under this section shall pay it with the return that covers the period in which the person received, sold, or used the motor fuel.

(e) If a corporation, other than a nonstock, nonprofit corporation, is required to pay motor fuel tax, personal liability for the tax and interest and penalties on the tax extends to any officer of the corporation who exercises direct control over its fiscal management.

(f) If a limited liability company, or limited liability partnership, including a limited partnership registered as a limited liability limited partnership, is required to pay the motor fuel tax and interest and penalties on the tax, personal liability for the tax and interest and penalties on the tax extends to any person who exercises direct control over the fiscal management of the limited liability company or limited liability partnership.

#### Section 9-315

(a) A licensed dealer or licensed special fuel seller shall deduct 0.5% of the 1st 10 cents of the motor fuel tax on each gallon of motor fuel, as a discount:

  (1) instead of an allowance for evaporation, shrinkage, and handling; and

  (2) to reimburse the licensed dealer or licensed special fuel seller for expenses incurred for the State in:

    (i) keeping records;

    (ii) collecting and paying the tax; and

    (iii) preparing reports.

(b)

  (1) This subsection does not apply to:

    (i) any aviation gasoline; or

    (ii) any other motor fuel on which the motor fuel tax has not been paid.

  (2) From the discount under subsection (a) of this section:

    (i) a licensed dealer who sells gasoline to a retail service station dealer shall deduct on the bill 1/2 of the discount;

    (ii) a licensed dealer who sells gasoline to a licensed distributor or licensed special fuel seller shall deduct on the bill 2/3 of the discount;

    (iii) a licensed distributor who sells motor fuel to a retail service station dealer shall deduct on the bill 1/3 of the discount;

    (iv) a licensed special fuel seller who sells special fuel to a retail service station dealer shall deduct on the bill 1/2 of the discount;

    (v) a licensed special fuel seller who sells special fuel to a licensed distributor shall deduct on the bill 2/3 of the discount; and

    (vi) a licensed special fuel seller who sells gasoline to a licensed distributor shall deduct on the bill 1/3 of the discount.

#### Section 9-318

A person shall be licensed by the Comptroller before the person may engage, in the State, in the business of:

(1) a dealer;

(2) a distributor;

(3) a special fuel seller;

(4) a special fuel user; or

(5) a turbine fuel seller.

#### Section 9-319

(a) To qualify for a Class "A" license, an applicant shall be:

  (1) an entity that:

    (i) blends or refines gasoline;

    (ii) owns or controls and dedicates at least 1 million gallons of storage capacity in the State to gasoline, other than aviation gasoline, and to special fuel; and

    (iii) keeps in the State an inventory of at least 500,000 gallons of that gasoline and special fuel; or

  (2) an entity that is wholly owned by one or more entities that would otherwise qualify as a Class "A" licensee.

(b) To qualify for a Class "B" license, an applicant shall be an entity that is licensed by the state from which the gasoline is to be exported for importation into this State.

(c) To qualify for a Class "C" license, an applicant shall be an entity that:

  (1) is based in another state;

  (2) is licensed by the state to which that gasoline is to be exported;

  (3) has no sales in this State; and

  (4) does not own, operate or utilize in this State a facility that can store or dispense motor fuel.

(d) To qualify for a Class "D" license, an applicant shall be an entity that:

  (1) is organized under the laws of the State;

  (2) does not blend or refine gasoline;

  (3) has, in this State, excluding retail service stations, fixed storage tanks for at least 200,000 gallons of motor fuel other than aviation fuel;

  (4) keeps an inventory of motor fuel in the State; and

  (5) annually sells in the State:

    (i) at least 1 million gallons of gasoline to persons who are not licensed dealers; and

    (ii) of the total gallons of motor fuel acquired, at least 50% in gasoline.

(e) To qualify for a Class "G-Temporary" license, an applicant shall be an entity that:

  (1) is not entitled to any other class of license for dealers;

  (2) has a specific federal contract to supply gasoline to the United States or a unit of the United States that is entitled to an exemption under Sec. 9-304 of this subtitle or to a refund under Sec. 13-901(f)(1)(ii)2A of this article; and

  (3) is licensed by the state from which that gasoline is to be exported, if any part is to be imported into this State.

(f) To qualify for a Class "W" license, an applicant shall be an entity that is not entitled to any other class of license.

(g) To qualify for an exemption certificate, an applicant:

  (1) shall hold a Class "F", "S", or "U" license;

  (2) shall be an entity that is exempt from the motor fuel tax under this subtitle; or

  (3) may not own or operate on public highways in this State a vehicle that is propelled by special fuel.

(h) If an applicant is organized under the laws of another state or country, the applicant first shall qualify to do business in this State under the appropriate provisions of the Corporations and Associations Article.

#### Section 9-320

(a) An applicant for a license shall submit to the Comptroller:

  (1) a completed application, on the form that the Comptroller requires, that:

    (i) is made under oath;

    (ii) states the name under which the applicant does or will do business in the State;

    (iii) states, for partnerships, the name of each partner;

    (iv) states, for firms, the name of each member; and

    (v) states, for corporations, the names and addresses of its principal officers, resident agent, and attorney in fact; and

  (2) the bond required under Title 13 of this article.

(b) An applicant for an exemption certificate shall submit a completed application, on the form that the Comptroller requires, that:

  (1) is made under oath;

  (2) states the name under which the applicant does or will do business in the State;

  (3) states, for partnerships, the name of each partner;

  (4) states, for firms, the name of each member; and

  (5) states, for corporations, the names and addresses of its principal officers, resident agent, and attorney in fact.

(c) The Comptroller shall keep and index:

  (1) each application filed under this section;

  (2) each bond filed under this section; and

  (3) a record of:

    (i) each licensee; and

    (ii) each holder of an exemption certificate.

#### Section 9-321

(a) The Comptroller shall issue a license of the appropriate class to each applicant who meets the requirements of this subtitle.

(b) The Comptroller shall issue an exemption certificate to each applicant who meets the requirements of this subtitle.

#### Section 9-322

(a) A Class "A" license authorizes the licensee to:

  (1) import into this State gasoline on which the motor fuel tax has not been paid;

  (2) export from this State gasoline on which the motor fuel tax has not been paid; and

  (3) acquire in this State from another holder of a Class "A" license gasoline on which the motor fuel tax has not been paid.

(b)

  (1) A Class "B" license authorizes the licensee to import into this State gasoline on which the motor fuel tax has not been paid, for personal use or for redistribution.

  (2) A holder of a Class "B" license may not acquire in this State gasoline on which the motor fuel tax has not been paid.

(c)

  (1) A Class "C" license authorizes the licensee to:

    (i) acquire, in this State, from a supplier whom the Comptroller specifically approves, gasoline on which the motor fuel tax has not been paid; and

    (ii) export that gasoline.

  (2) A holder of a Class "C" license may not import into this State gasoline on which the motor fuel tax has not been paid.

(d)

  (1) A Class "D" license authorizes the licensee to acquire, in this State, gasoline on which the motor fuel tax has not been paid from:

    (i) a holder of a Class "A" license; or

    (ii) another holder of a Class "D" license.

  (2) Unless authorized by the Comptroller, a holder of a Class "D" license may not import into this State gasoline on which the motor fuel tax has not been paid.

(e) A Class "F" license authorizes the licensee to engage, in this State, in the business of a turbine fuel seller.

(f)

  (1) A Class "G-Temporary" license authorizes the licensee during the term of the federal contract for which the license is issued to:

    (i) acquire, in this State, gasoline on which the motor fuel tax has not been paid, in the amount that the contract specifies and from a supplier whom the Comptroller specifically approves; and

    (ii) deliver that amount to the location that the contract specifies.

  (2) A Class "G-Temporary" license may be extended if:

    (i) the original federal contract is extended; or

    (ii) during the term of the license, another contract is awarded to the licensee.

(g) A Class "S" license authorizes a licensee to engage, in this State, in the business of a special fuel seller.

(h) A Class "U" license authorizes a licensee to engage, in this State, in the business of a special fuel user.

(i) A Class "W" license authorizes a licensee to engage, in this State, in the business of a distributor.

(j) A dealer who holds any class of license because the dealer was licensed before July 1, 1985, has the privileges authorized for that class until the dealer is required to apply for a new license, in accordance with regulations of the Comptroller in effect as of July 1, 1985.

(k) As indicated on an exemption certificate, the certificate authorizes the holder to acquire, in bulk and without paying the motor fuel tax:

  (1) special fuel other than turbine fuel; or

  (2) turbine fuel.

#### Section 9-323

(a) Except as provided in subsection (b) of this section, a license or an exemption certificate expires on the first May 31 after its effective date.

(b) A Class "G-Temporary" license expires on the earlier of:

  (1) termination of the contract for which the license was issued; or

  (2) the first May 31 after its effective date.

#### Section 9-324

Each licensee and exemption certificate holder shall display the license or certificate conspicuously in each place of business, in this State, of the licensee or holder.

#### Section 9-325

A license or exemption certificate is valid only for the person in whose name the license or certificate is issued and is not assignable.

#### Section 9-326

(a) To obtain proper identification of a person who receives, buys, sells, or uses motor fuel, the Comptroller may:

  (1) require information necessary to assign an identification number to the person; and

  (2) assign a license or other identification number to the person.

(b) A person required to file a return or other document under this subtitle shall include the identification number of the person filing and of each other person listed in the other document.

(c) A person who is to be listed in any return or other document filed by another person under this subtitle shall give the appropriate identification number to the person who is required to file the document.

#### Section 9-327

(a) To obtain an exemption under Sec. 9-303(a), (b), or (c) of this subtitle, a dealer, distributor, special fuel seller, special fuel user, or turbine fuel seller shall complete and submit any certificates and reports that the Comptroller requires, by regulation.

(b) If the holder of an exemption certificate changes the use of any special fuel obtained under that certificate to a taxable use, the holder shall give the Comptroller written notice of the change within 5 days after the first change.

#### Section 9-328

Subject to the hearing provisions of Sec. 9-329 of this subtitle, the Comptroller may deny a license or exemption certificate to any applicant, if the applicant:

(1) fraudulently or deceptively has obtained or attempts to obtain a license or exemption certificate for the applicant or another person;

(2) previously has had a license or exemption certificate canceled for cause; or

(3) in the judgment of the Comptroller, has not filed an application in good faith.

#### Section 9-329

(a) Except as otherwise provided in Sec. 10-226 of the State Government Article, before the Comptroller takes any action under Sec. 9-328 of this subtitle, the Comptroller shall give the person against whom the action is contemplated an opportunity for a hearing before the Comptroller.

(b)

  (1) The Comptroller shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.

  (2) The notice shall be sent so that the applicant has at least 5 days' notice before the hearing.

(c) The Comptroller may administer oaths in connection with any proceeding under this section.

#### Section 9-330

Subject to Sec. 9-331 of this subtitle, the Comptroller may cancel a license or exemption certificate if the licensee or certificate holder:

(1) files false information under this subtitle;

(2) fails to file a report required under this subtitle;

(3) fails to give the Comptroller the notice of a change in use required under Sec. 9-327(b) of this subtitle;

(4) fails to pay any motor fuel tax, interest, or penalty due under this subtitle;

(5) violates any requirement for the class of license held;

(6) violates any regulation adopted under this subtitle;

(7) fails to maintain the bond required under Title 13 of this article;

(8) stops engaging for more than 6 consecutive months in the business for which licensed; or

(9) fails to keep records required under this article, Title 10, Subtitle 3 of the Business Regulation Article, or an applicable regulation.

#### Section 9-331

If the Comptroller cancels a license or exemption certificate under Sec. 9-330 of this subtitle, the Comptroller shall notify the licensee or certificate holder in writing sent to the last known address of the licensee or certificate holder. The notice shall be sent by certified mail, return receipt requested, under a postmark of the United States Postal Service.

#### Section 9-332

Any person aggrieved by a cancellation under Sec. 9-330 of this subtitle or by a final decision of the Comptroller in a contested case as defined in Sec. 10-202 of the State Government Article may appeal to the appropriate circuit court. The appeal shall be filed within 30 days after the mailing date of the final decision or notice of cancellation.

#### Section 9-333

A licensee may request in writing that the Comptroller cancel a license held by the licensee. The Comptroller shall notify the licensee in writing of the decision on the request. If the request is granted, the cancellation takes effect on the last day of the month in which the request is received.

#### Section 9-334

The revocation or cancellation of a license under this subtitle does not discharge a person from a duty or liability imposed by law on that person before the revocation or cancellation takes effect.

#### Section 9-335

The Comptroller shall surrender the bond filed by a licensee if:

(1) the license is revoked or canceled; and

(2) the licensee has paid all motor fuel taxes, interest, and penalties that are due.

#### Section 9-336

(a) The Motor Vehicle Administration shall send promptly to the Comptroller the name and address of a person who registers a motor vehicle propelled by special fuel for operation on public highways.

(b) The Comptroller shall notify immediately the Motor Vehicle Administration if:

  (1) the Comptroller cancels a license or exemption certificate issued under this subtitle or suspends or revokes an identification marker, a permit, or temporary authority issued to a motor carrier under Subtitle 2 of this title for failure to comply with the provisions of this subtitle or Subtitle 2 of this title; or

  (2) the Comptroller knows that a licensee, exemption certificate holder, or motor carrier has violated the provisions of this subtitle or Subtitle 2 of this title.

(c) On receipt of a notice under subsection (b) of this section, the Motor Vehicle Administration shall suspend or revoke the appropriate registration.

(d) If the Comptroller is satisfied with the corrective action taken by the licensee or certificate holder, the Comptroller may reinstate the license or exemption certificate. If the license or exemption certificate is reinstated, the Comptroller shall give the Motor Vehicle Administration notice of the reinstatement and the Motor Vehicle Administration shall reinstate the registration of the licensee or exemption certificate holder.

#### Section 9-337

(a) A person may not engage in the business of a dealer, a distributor, a special fuel seller, a special fuel user, or a turbine fuel seller without a license issued by the Comptroller under this subtitle.

(b) A dealer, distributor, special fuel seller, special fuel user, or turbine fuel seller may not receive motor fuel without a license issued by the Comptroller under this subtitle.

(c) A person may not transfer motor fuel on which motor fuel tax is due and has not been paid to a person who does not hold a license or exemption certificate issued by the Comptroller under this subtitle.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)