Maryland’s Excessive Toll Penalty Is Highway Robbery

Carol Park May 14, 2018

Under the U.S. Department of Transportation overhaul launched in late April, states that have generated some non-federal transportation revenue will be favored to win some of the $1.5 billion pool of federal infrastructure funding authorized for 2018. In Congress, both parties have resisted the approach, worrying that the overhaul would put too much burden on state governments.

 

The Congress’ concern is more than valid because the USDOT overhaul would encourage states like Maryland to collect more tolls and fees from people in order to raise revenue. In 2013, the Maryland General Assembly had already passed a law that revamped the enforcement of unpaid tolls collection of Maryland motorists, in order to increase toll revenue. Though everyone agrees that motorists should pay their lawful obligations, the new regime can be unfair and excessive.

 

Under the 2013 overhaul, Maryland’s toll violators have 45 days to pay their bill before a $50 civil penalty is assessed, after which the administrative fee keeps adding on for the late payment. Since 2014, 207,000 drivers have had their car registration placed on hold because of overdue fees and 479,000 people have been referred to the state’s Collection Units. Recently, there were cases where a Maryland driver amassed more than $120,000 in overdue toll payment.

 

The problem is, the fines end up punishing not just the fee evaders but also those who simply forgot to have cash for the toll booth or update their credit card or address information for their E-ZPass. Even worse, technical errors can result in mistaken toll bills. Oftentimes, motorists are unaware of any problems while they continue to accrue thousands of dollars in tolls and penalties.

 

Despite this, Maryland’s recent efforts to collect unpaid tolls has generated millions of dollars in state revenue. According to the Maryland Transportation Authority (MDTA) 2017 Comprehensive Annual Financial Report, annual operating revenue from toll administrative fees, which includes fines and penalty fee revenue, totaled $61.26 million at the end of FY 2017. This compares to just $22.41 million at the end of FY 2012, a 173% increase in just five years.

 

Meanwhile, the MDTA’s operating expenses for collection and police and patrol have also risen steadily over the years. In FY 2017, MDTA spent hefty $226.73 million for collection, police patrol and maintenance, while they spent just $7.2 million for repairs, replacement and insurance.

 

Instead of spending millions in hunting down toll violators, it is time for MDTA to shift its focus to improving services and updating facilities. For instance, Maryland is exploring phasing out all cash toll booths across the state starting in 2019. This project is estimated to cost $300 million, but the funding for it has not yet been determined.

 

There are high hopes for the transition to electronic tolls, as studies have shown they can save drivers time on their commute, reduce accidents at toll plazas, and reduce carbon emissions. Others have suggested that the transition to electronic toll lanes could also reduce the burden of hunting down toll violators, because everyone will be required to have an E-ZPass anyway. However, the first two areas that will be prioritized for the transition are the Thomas J. Hatem Memorial Bridge and Francis Scott Key Memorial Bridge. Research shows that 93 percent and 78.5 percent of those who cross these tolls have E-ZPass already, respectively.

 

Switching to the electronic system is a necessary but not sufficient solution for Marylanders in toll bankruptcy. The transition must be accompanied by the dismantling of bureaucratic law enforcement of toll violators and a change in attitude that late fee penalties aren’t supposed to be a dependable state revenue stream.

 

Maryland’s current system of toll fines is punitive and endangers the financial well-being of thousands of Maryland drivers. High fines are particularly damaging for low-income drivers, who would have to take out loans to pay their toll debt.

 

MDTA should not be in the business of bill collection. Instead, MDTA should use the police patrol budget to improve services and update facilities. Until MDTA stops depending on toll penalties as a source of transportation revenue, Maryland’s tolls will remain a form of highway robbery.