Maryland Gas Tax Takes Effect

Beginning today, Marylanders will see a 3.5-cent increase in the state's gas tax.

July 01, 2013

BALTIMORE – July 1 is the kick off day for two new tax hikes on Maryland motorists:  a 3.5-cent rise in the state's gas tax — the first increase in 20 years — and an increase in toll rates by as much as 50%.

 Maryland's gas tax has stayed at 23.5 cents a gallon since 1992. The increase was part of a transportation revenue package offered by Gov. Martin O'Malley. The newspaper writes that further scheduled increases “could drive the tax up to more than 42 cents a gallon by 2016, raising money to jump-start the state's stalled transportation efforts.”

Residents will also see other taxes and fees increase, writes the Baltimore Sun. For example: a tax of 5 cents (up from 2 cents) on most bottled beverages sold in Baltimore. Milk, juices and two-liter soft drinks are exempt. “Local officials say the increase will generate about $10 million a year to build new school facilities, but critics fear that city businesses will suffer as customers choose to buy beverages outside Baltimore,” notes the newspaper.

In related state gas-tax news, legislators in Washington voted down a transportation package last week that would have increased the gas tax by 10.5 cents a gallon. The package was a top priority of Gov. Jay Inslee.

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