Maryland Gov. Martin O'Malley (D) last week unveiled a new transportation funding plan that would lower the state's excise tax on gasoline and replace it with a sales tax on the wholesale price. The governor appears to be following the lead of neighboring state Virginia, which passed a similar plan last month.
O’Malley’s plan would reduce the state’s existing 23.5-cents-per-gallon gas tax by 5 cents to 18.5 cents per gallon, and replace it with a new 4 percent sales tax at the wholesale level, phased in over two years. The flat gas tax also would rise in future years to reflect inflation. O’Malley’s proposal also would steer revenue generated from taxing Internet sales which is pending legislation at the federal level — to transportation. If the U.S. Congress takes no action on the Internet sales tax issue by 2015, O’Malley’s plan would bump up the wholesale sale tax on gas from 4 percent to 6 percent. The proposal — expected to yield $3.4 billion over the next five years — was endorsed by the two Democratic leaders of Maryland's General Assembly, boosting its prospects in a legislature that has resisted efforts to raise taxes on gas since 1992.
Eighteen states are considering similar proposals that are moving away from a cents-per-gallon excise tax and toward a percentage-based sales tax that would keep up with inflation.
 |
This article originally ran in NATSO News Weekly (NNW), NATSO's member only weekly electronic newsletter. NNW is packed with the latest updates on government and business issues affecting the truckstop and travel plaza industry. If you aren't reading NNW, you are missing out. Not a member? Join today or submit a request to receive additional information. If you are a member and not receiving NNW, submit a request to be added to the email list. |
Subscribe to Updates
NATSO provides a breadth of information created to strengthen travel plazas’ ability to meet the needs of the travelling public in an age of disruption. This includes knowledge filled blog posts, articles and publications. If you would like to receive a digest of blog post and articles directly in your inbox, please provide your name, email and the frequency of the updates you want to receive the email digest.
