Maryland Gas Tax to Increase July 1st

Maryland Gas Tax to Increase July 1st

"It's also going to drive business into the neighboring states, so it's going to be a net loss for me and for the state," said Joe Parsley, owner of the Shell Car Wash on W. Patrick St. in Frederick.
FREDERICK, Md. - It's something we do everyday, and many cringe every time. Paying for gas. 

"My personal vehicle, I can't even afford to fill it up every week," said Jason Liller, a Frederick commuter.

"It's very frustrating because as a Maryland citizen you can't get on top. You're always paying tax for something," said Christina Bennett, a Frederick commuter.

Starting July 1, 2014 Maryland commuters will have to pay about half a cent more per gallon as a result of the gas tax increase passed last year, when motorists experienced a 3.5 cent hike.

"July 1st we will be seeing a .4 cent increase, so less than half a cent and that's actually a consumer price indexing increase, which is sort of an adjusted tax rate based on the cost of inflation," said Ragina Averella-Cooper, Manager of Public and Government Affairs at AAA Mid-Atlantic.

Maryland motorists are spending more of their incomes at the pump than their counterparts in Washington and Virginia, but the state fuel tax isn't just a concern for consumers, it also has gas station owners concerned about their business.

"It's going to increase the cost of our product in the ground. It's going to increase the overhead cost of carrying that product. It's also going to drive business into the neighboring states, so it's going to be a net loss for me and for the state," said Joe Parsley, owner of the Shell Car Wash on W. Patrick St. in Frederick.

According to AAA, the state gas tax increase will help fund transit related projects, such as safer roadways and bridges. The legislation that passed last year will provide for additional increases through out fiscal year 2018. It's a cost drivers will just have to deal with.

On the bright side of this tax increase AAA Mid-Atlantic says Maryland motorists are paying 4.46 cents less than the average total fuel tax rate at the state, local and federal levels.
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