Cumberland Times-News

March 28, 2013

Senate panel OKs gas tax increase

Brian White
Associated Press

— ANNAPOLIS — Maryland’s first gas tax increase in two decades cleared a Senate committee on Thursday, paving the way for people to pay nearly 4 cents more per gallon in July and for additional increases in coming years.

The Senate Budget and Taxation Committee passed the bill on a 9-4 vote, sending it to the Senate floor. The panel did not make any changes to the bill first proposed earlier this month by Gov. Martin O’Malley. The measure already has passed the House of Delegates.

All nine supporters were Democrats. Three Republicans and one Democrat voted against it.

The committee also approved a separate measure for a constitutional amendment that would provide greater safeguards against using transportation money for other purposes.

The gas tax measure would raise the cost of a gallon of gas by about 4 cents in July by adding a 1 percent sales tax. It would rise to 2 percent January 2015 and 3 percent in July 2015.

It could rise to 5 percent in 2016, if Congress does not approve a measure allowing states to charge an Internet sales tax to provide another source of revenue for transportation projects. The top rate would add about 20 cents to the price of a gallon of gas to today’s price, when increases for inflation are added.

Maryland has not raised its 23.5-cents-per-gallon excise tax since 1992.