Md. House Passes Gas Tax Increase

ANNAPOLIS, Md. — The Maryland House of Delegates has voted to raise taxes on gasoline in the state for the first time in more than two decades.

The House voted 78-56 on Friday for the bill, which now moves to the Senate.

The measure would apply a 1 percent sales tax in July in addition to the state’s 23.5-cents-per-gallon excise tax. The increase would add 3.3 cents to the price of a gallon of gas. The bill also includes an adjustment for inflation that would add another half-penny in July 2014, for a total of nearly 4 cents.

There would be another increase of 3.7 cents on Jan. 1, 2015, with another increase in July 2015.

The price would rise to about 12 cents by July 2015.

Here is a glance at the estimated increases in gas prices to the current 23.5-cents-per-gallon excise tax.:

— 1 percent sales tax in July: 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 more cents.

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(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


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