J.R. 5                                       1994 JOINT RESOLUTIONS

RESOLVED, That a copy of this Resolution be forwarded by the Department of
Legislative Reference to the Honorable William Donald Schaefer, Governor of Maryland,
the Honorable Charles L. Benton, Secretary of Budget and Fiscal Planning, the
Honorable Tyras S. Athey, Secretary of State, and Edward L. Athey, President, State of
Maryland Athletic Hall of Fame.

Signed May 26, 1994;

Joint Resolution No. 5
(Senate Joint Resolution No. 8)

A Senate Joint Resolution concerning

New Vehicle Vehicles - Retail Sales and Consumer Leasing - Taxes

FOR the purpose of requiring the Department of Fiscal Services to prepare a report on
the effects of the sales and use tax and the motor vehicle excise tax applied to retail
consumer leases and, the revenues generated or lost by these taxes, and the effects
of leasing on vehicle sales and related tax revenues; specifying that the report
include certain information relating to the sale and leasing of vehicles and the fiscal
effects of eliminating the sales and use tax and the motor vehicle excise tax on lease
vehicles; and generally relating to the sale and leasing of new vehicles.

WHEREAS, New vehicle retail consumer leasing has become an increasingly viable
alternative to purchasing; and

WHEREAS, Leasing as a percent of new vehicle retail sales has grown dramatically
in the United States and states which border Maryland; and

WHEREAS, State laws may be inhibiting a similar rate of growth in the State of
Maryland; and

WHEREAS, This inhibited rate of growth may be denying the State of Maryland
long-term tax revenue opportunities; now, therefore, be it

RESOLVED BY THE GENERAL ASSEMBLY OF MARYLAND, That the
Department of Fiscal Services shall prepare a report on examining the effects of that the
sales and use tax and the motor vehicle excise tax applied to retail consumer leases and
has on the revenues generated or lost by these taxes;, and on the sale of vehicles and the
revenue generated from vehicle sales; and be it further

RESOLVED, That in preparing the report, the Department of Fiscal Services may
request information from any of the following sources:

(1)     The Office of the Comptroller;

(2)     The Department of Transportation;

(3)     The Department of Budget and Fiscal Planning;

- 3380 -