Maryland Governor Pushes New Gas Tax

The sales tax on gasoline at the wholesale level would help fund transportation projects.

March 06, 2013

ANNAPOLIS - Maryland Gov. Martin O€™Malley€™s proposed transportation plan contains a new tax on gasoline, the Washington Post reports. Two Democratic General Assemblymen have endorsed the plan, upping its changes for passage.

Similar to Virginia€™s, the Maryland measure would tack a sales tax on gasoline at the wholesale level and tied to inflation. Virginia approved a transportation plan in February.

"We cannot afford the cost of inaction," said O€™Malley. "This plan will help us generate the revenue we need to ease some of the worst traffic congestion in the nation while building and repairing our transportation infrastructure."

The governor€™s proposal would slice off a nickel from Maryland€™s current 23.5 cents per gallon gasoline tax, but add a 4% sales tax at the wholesale level (taking two years to get up to the full percentage). The flat gasoline tax would also increase in the future to keep pace with inflation.

That would translate into drivers paying around 2 cents more per gallon beginning July, with a 7 cents per gallon bump in July 2014. "I don€™t think it€™s going to be an easy task to pass this, but it€™s not insurmountable," said Senate Majority Leader Robert Garagiola.

However, House Minority Leader Anthony J. O€™Donnell said that Virginia€™s passage of similar legislation wouldn€™t affect the passage of Maryland€™s bill. "Virginians haven€™t put up with massive tax increases like Marylanders have from this governor," O€™Donnell said. "People can€™t afford their gas taxes right now. €¦ Any increase is going to hurt the economy and hurt people who are barely making ends meet."

Advertisement
Advertisement
Advertisement