Posted on 05/31/23
| News Source: Pikesville Patch
Maryland drivers filling up at the pumps could feel a bigger pinch on their wallets when the state's gas tax increases in July.
On July 1, the state tax rate on a gallon of gas will increase to 47 cents per gallon, according to a report published on the state comptroller's website last week. The spike marks a 10 percent increase compared to the current rate, according to a report by Maryland Matters, and is expected to add about 65 cents to the total cost of filling a 15-gallon gas tank.
On Wednesday, the average price for a gallon of gas in Maryland was $3.49. A year ago the state average was $4.59 per gallon.
Owners of diesel-powered vehicles will also see a similar spike on July 1 when the state tax increases from nearly 43.5 cents per gallon to almost 47.8 cents per gallon. Over the last two years, the state tax on diesel has increased by more than 29 percent.
Over the past two years, Maryland's gas tax rate has surged more than 30 percent due to inflation and rising fuel prices.
Republican state lawmakers criticized the hike, calling it "beyond disappointing."
"You can't be the party of the middle class if you keep promoting radical environmental policies that raise taxes and the cost of living," House Minority Leader Jason Buckel told Maryland Matters. "Everyone can't afford a Tesla, or wants to live next to a Metro stop. For the millions of Marylanders who need to use their standard, gas-powered cars to go to work and feed their families, Maryland Democrats just raised your taxes."
A spokesman for Maryland Gov. Wes Moore did not immediately comment on the tax increase.
Currently, gasoline in Maryland is taxed at a rate of 42.7 cents per gallon, the fourth highest among all U.S. states, according to a 24-7 Wall Street report. In April, the average gallon of gas cost about $3.54. State gas tax accounted for about 12.1 percent of the total cost.
In March, Moore announced the state would adopt rules to phase out the sale of gas-powered cars in the state by 2035 to curb climate change. The move followed several states that had made similar announcements, including California and New Jersey.
"We're talking about a major transformation that is going to define this administration — and that's how we turn Maryland from a state powered by oil and gas to a state powered by clean energy," Moore said in a statement. "I am confident that the state of Maryland can and will lead the clean energy revolution."