Gas Tax Repealed for 30 days in Maryland

MARYLAND – As pressure mounts nationally for lower gas prices, Maryland becomes the first state to repeal its gas tax.
During a bill signing Friday, Governor Larry Hogan today praised the speed and bipartisanship of the effort to help keep prices down.

“We simply cannot afford not to let more Marylanders keep more of their own hard-earned dollars,” he said adding ” This bipartisan action will provide some relief from the pain at the pump.”

The measure suspends the gas tax for 30 days- with options in place for up to a 3-month extension. According to Salisbury University Beacon Director John Hickman that savings at just around 10 percent, could mean an average of 37 cents of savings per gallon.

“The average consumer spends 2,700 dollars a year on fuel so if you cut ten percent off of that even for a month that’s 20 to 25 dollars that they can have in their pocket,” Hickman said.

Gov. Hogan says it’s a measure the state can afford to take thanks to the state’s record budget surplus. Hickman tells us by using the fund to help pay the difference services won’t have to be cut in response to fewer tax dollars coming in.

“The way they are looking to fund this moratorium is to draw from some of that budget surplus and take the surplus and roll it into the cost that this tax would have funded,” Hickman said.

During the bill signing Hogan acknowledged prices may still rise, and that more measures are being considered.

“This will not be a cure-all and market instability and prices will fluctuate but we will continue to use every tool to provide immediate relief for Marylanders,” he said.

 

 

 

Categories: Local News, Maryland