Posted in: Gas Prices,
by Patrick DeHaan on Mar 28, 2013 01:00 PM
Motorists in Maryland may be paying more for gasoline, and this time its not the oil industry that can be blamed, but Uncle Sam.
According to the Washington Times, the Maryland House approved a proposal that would increase the tax on gasoline sold in the state 4 cents per gallon starting in July, and by another 8 cents in July 2015, and if that wasn't enough, yet another 8 cents by July 2016. The new tax is expected to bring in over $800 million per year to transportation budgets.
The new tax would essentially double the current gasoline tax, adding 13 to 20 cents per gallon to the cost of retail gasoline. Nearby neighbor Virginia has given the green light to a different form of increasing revenue, opting to drop the 17.5 cent per gallon gasoline tax and raising the general sales tax on nearly every product.
With the two going in completely opposite directions, it will certainly be interesting to see if motorists start crossing borders to take advantage of any tax savings from Virginia as they drop their gasoline tax.
Every state in the nation has a gasoline tax with the revenue funding nearly 40% of transportation costs but many states have looked for solutions as construction costs rise and states deal with a lack of revenue as declining gasoline sales rob them of needed transportation dollars. New Hampshire, Michigan, and Massachusetts are all looking at budgets that factor in some form of higher gasoline tax, according to the National Association of Convenience Stores.