The taxes and fees included in the budget plan the General Assembly passed will likely be felt by millions of Marylanders, according to several Republican lawmakers.

Maryland’s $3 billion budget deficit loomed over the State House largely for the entire 90-day legislative session, and on the final day, lawmakers gave the plan the final stamp of approval.

The budget plan includes more than $2.5 billion in spending cuts, along with $1.6 billion in taxes. Republicans have railed against the tax increases and specifically took issue with the new 3% tech tax aimed at capturing nearly $490 million in revenue for the state’s bottom line.

“I don’t understand how the governor of Maryland can actually sign a bill to say you’re waging a war on the middle class, you’re waging a war on cars, but at the same time, say you’re not getting a tax increase,” said Del. Mark Fisher, a Republican representing Calvert County.

“At some point, Maryland cannot afford the taxes in the state,” Del. Kathy Szeliga, a Baltimore County Republican, said.

Del. Fisher specifically took issue with the various tax and fee increases relating to vehicles; the revenue generated from the list he rattled off would go toward the state’s Transportation Trust Fund.

“We need the money for transportation” is what supporters of the tax and fee increases usually say, according to Fisher. “We hear this constantly. We constantly see the fees and the taxes increasing.”

Among the vehicle-related tax and fee increases in the budget are:

A $5 per tire tax;

An increase in the vehicle excise tax from 6% to 6.5%;

A rental car excise tax;

An accelerated phase-in of vehicle registration fee increase;

An altered definition to historic vehicle to pre-1999 models;

and A VEIP fee increase.

“The majority party has decided to wage war on cars. Clearly that’s what [they’ve],” Fisher said. “When you have a war on cars, you also have a war on the middle class because that’s who drives the cars.”

According to Gov. Wes Moore and fiscal analysts, 94% of Marylanders should expect to see either no change in their income tax burden or see small reductions. Moore said he is helping middle class Marylanders, despite the list of tax increases included in the budget.

“I think it’s absolutely fair [to say that] because it’s the numbers,” Gov. Moore said during an interview with FOX45 News. “I think, especially when you consider what’s happening on the federal level, the fact that this state can say, the governor is making sure that he’s holding firm on his promise of giving the middle class a tax cut, I think people can and people are — do feel thankful for that.”

When pressed on whether people will feel thankful given the $1.6 billion price tag on the tax increases, Gov. Moore doubled down on his belief and said especially with the latest tariffs the Trump administration announced.

“I think you are watching a state government that is giving the middle class a tax cut in this moment. I think you are watching a state government that’s about to do the largest amount of cuts to a Maryland state budget that we have seen in literally a generation,” Moore said. “I think people are seeing that this is not just what fiscal discipline looks like, this is what good governance looks like and how to properly maintain a balance sheet.”

Included in the budget is a 3% tech tax that was at the center of criticism from Republicans. Senate Minority Leader Steve Hershey described the plan as a “pass it and find out what’s in it” situation, which he said was unfortunate.

However, Moore said the plan was an effort to modernize the state’s tax code as the economy shifts away from being goods-based and more service-based.

“No one who looks at Maryland’s tax code and says it makes sense,” Gov. Moore said.

Heading into this session, there were several “lighthouse industries” the governor said he wanted to prioritize with investments: life sciences, artificial intelligence, quantum, cybersecurity and aerospace.

During the budget negotiation process, several carveouts for the 3% tech tax were included: Quantum and cybersecurity were two of those carveouts. The quantum carveout, however, only applies to businesses in the Prince George’s County “Discovery District.”

Republicans argued the specific geographic carveouts resulted in state government picking winners and losers.

“If you have to exempt one part of the state for the IT tax in order to get the companies to stay in Maryland, why would you implement the tax at all,” Fisher said.

Gov. Moore said there are certain industries that “have an outsized potential for growth,” when asked why the plan didn’t include broader carveouts.

Despite the pushback from the minority party, Gov. Moore and the presiding officers touted the work from the General Assembly during the first bill singing Tuesday morning.

“At a time when the White House seems more interested in carving out space for billionaire tax cuts than helping regular people, Maryland is mobilizing in support of our workers and in support of middle-class Marylanders,” Gov. Moore said.

“These actions were necessary and essential to stabilize our state’s finances while safeguarding the critical services that many vulnerable Marylanders absolutely rely on,” Senate President Bill Ferguson added.

“In the face of catastrophic cuts from the Trump Administration, we passed a budget that solves our immediate fiscal challenges and creates a safety net that we can withstand the fallout from Trump’s economic malpractice,” Speaker Adrienne Jones said during the bill signing event.

A bipartisan joint committee was launched with members from both chambers to track federal action in the interim. The budget included triggers, sparking legislative action if federal funding to Maryland drops by $1 billion.

“I cannot predict anything about what a special session will hold, certainly not about revenues,” House Majority Leader David Moon told reporters Monday. “But I can guarantee you that this trump administration continues its actions, Maryland has thousands of its residents losing their jobs and being sent into our unemployment insurance rolls. For every government agency that doge starts its hatchet to, we get private sector layoffs.”

“Democrats are concerned about what’s going on in Washington, D.C. It’s possible we could come back in October after the feds close out their fiscal year, and see where they made some decisions,” Hershey said. “Unfortunately, if we do come back, it’s going to be just to raise taxes and as we’ve said, we’re going to be opposing that.”

Senate President Ferguson and Speaker Jones will co-chair the workgroup.

Have a news tip? Contact Mikenzie Frost at mbfrost@sbgtv.com.