Maryland Gov. Martin O’Malley (D) proposed changing the state’s fuel-tax structure by lowering the retail tax on gasoline but boosting the wholesale tax, which would in effect raise the tax on end users, the Washington Post reported Tuesday.
The proposal would knock 5 cents off the state’s existing 23.5-cents gas tax but create a new 4% wholesale fuel sales tax that would be phased in over two years, the Post said. The gas tax also would rise in future years to reflect inflation.
Motorists would pay about 2 cents more per gallon of gas beginning in July and an additional 7 cents more per gallon after that, the newspaper reported, citing O’Malley administration officials. The funds would be used for transportation infrastructure projects.
The structure is similar to Virginia’s recent reconfiguration of its fuel-tax structure, which would lower retail fuel taxes but boost wholesale taxes. That measure, passed by the Virginia General Assembly, is awaiting the signature of Gov. Bob McDonnell’s (R), who is expected to sign it.