O’Malley Proposes Sales Tax On Gasoline

Monday, January 30, 2012
Robert Lang and Associated Press

Gov. Martin O’Malley is talking about phasing in a 6 percent sales tax on gasoline.

O’Malley, speaking on WTOP-Radio, said Monday he believes that would be the best option for addressing transportation infrastructure needs.

The governor, a Democrat, has been talking about the need to boost transportation revenues for months.

He says the sales tax would be increased 2 percent annually for three years.

O’Malley said that the sales tax would be halted if gas prices increase too high.

O’Malley also says applying the sales tax would be in addition to the state’s 23.5-cent flat tax on gasoline.

The governor is expected to include this proposal in his State of the State Address on Wednesday.

The governor says many lawmakers were resultant to increase the gas tax, and suggested the sales tax as an alternative.

Several business groups have been pushing for an increase in the gas tax.  However, other business groups are opposed to the tax.

Kimberly Burns, president of Maryland Business for Responsive Government said that, “there were no details offered whatsoever about any lock-box provision or otherwise dedicating funds to transportation infrastructure.

“As it stands now, this tax is designed to keep taking from the wallets of hard-working Maryland families and small businesses with no accountability.

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… It just never ends with this guy and taxes, does it? …

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