Tom Warne Report, 28 October 2011
ANNAPOLIS, Md. – A proposal including a 50 percent increase to vehicle registration fees to raise more than $800 million in new transportation dollars annually in Maryland was sent to the governor and legislature for approval Tuesday. The plan to raise the state’s gas tax by 15 cents over three years was formally approved by a state commission, clearing the way for it to move on to the General Assembly when the session begins in January.
“Everything here is a user fee. It’s all tied to transportation,” said Gus Bauman, the panel’s chairman. “Whether one drives or is on public transit, everyone is going to share this, but it’s all user fees tied to transportation users. And, of course, the motor fuel tax, importantly, captures people who are driving through and stopping for fuel in Maryland when they’re from out of state.”
The tax hike would apply to both diesel and gas fuel, and would increase the 23.5-cent gas tax by 5 cents per year for three years, then be indexed according to the Construction Cost Index for inflation. Once fully implemented, it would raise about $491 million annually. The proposal calls for doubling vehicle emission fees, bus fare increases, elimination of free bus passes.