Transportation - Rental Cars - Excise Tax Exemption

SB 374 exempts rental vehicles from Maryland's vehicle excise tax, directly affecting rental car companies operating in the state. The bill adds a new exemption category (Section 13-810(a)(26)) to the existing list, removing rental vehicles from the tax base that previously applied a 3.5% rate under Section 13-809(c)(1)(ii). This change eliminates the excise tax obligation for rental car companies on vehicles they lease to customers. The exemption takes effect July 1, 2026, and does not alter other tax rates or provisions.