Gas tax approved by Maryland Senate
ANNAPOLIS, Md. (AP) - The Maryland Senate has given final approval to the state's first gas tax in just over 20 years.
The Senate voted 27-20 on Friday for the measure, which now goes to Gov. Martin O'Malley.
The measure puts a new 1 percent sales tax on a gallon of gasoline beginning in July. It also includes a provision to raise the tax automatically to adjust for inflation. The price of gas will rise to about 4 cents more a gallon in July.
The bill also includes additional increases in future years. The sales tax would rise to 2 percent in 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.
Here is a glance at the estimated increases in gas prices to Maryland's current 23.5-cents-per-gallon excise tax under a measure approved by the General Assembly, according to the Maryland Department of Legislative Services.
- 1 percent sales tax in July and a half-penny index for inflation: 3.8 more cents.
- Index for inflation on July 1, 2014: half a penny.
- 1 percent sales tax increase on Jan. 1, 2015: 3.7 more cents.
- 1 percent sales tax increase on July 1, 2015 and index for inflation: 4.1 cents.
TOTAL: 12.1 more cents.
If federal Internet sales tax legislation does not pass:
- 1 percent sales tax increase Jan. 1, 2016: 3.6 cents more.
- 1 percent sales tax increase on July 1, 2016 and indexing for inflation: 4.5 cents more.
TOTAL: 20.2 cents.
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