Wed February 15, 2012
Governor Martin O'Malley Fleshes Out Gas Tax Plan
ANNAPOLIS, Md. (AP) - Gov. Martin O'Malley is elaborating on his
proposal to phase in the state's sales tax to apply to gasoline.
The measure is expected to be introduced Tuesday. It would phase in a 2 percent increase each year for three years.
Local governments would receive a significant portion of the new revenue for transportation.
Rick Abbruzzese, the governor's director of public affairs, says the measure would make it harder to shift transportation revenue to other purposes. That would require a three-fifths vote in the House and Senate. The state's treasurer also would have to support transfers.
If gas prices increase by more than 15 percent in a year during the first three years of implementation, a 2 percent increase would be delayed.