Maryland Truckers Oppose Plan to Index Fuel Taxes

The Maryland Motor Truck Association will oppose a transportation funding plan put forth by Gov. Martin O’Malley (D) that includes a new sales tax on motor fuel and a 5-cent reduction in the gasoline tax but not in the diesel tax.

O’Malley’s fuel-tax plan, unveiled March 4, would phase in a 4% sales tax on the price of gasoline and diesel over two years.

At the same time, the 23.5-cent per-gallon gasoline tax would be reduced by 5 cents, although diesel would continue to be taxed at 24.25 cents per gallon.

In addition to a sales tax, the plan also creates a second “inflationary sensitive measure,” tax indexing, MMTA said.

The gasoline and diesel taxes would be tied to the Consumer Price Index but there is no cap for when fuel prices rise, only a floor when they fall, MMTA said.

“Essentially, the state is saying that it is never going to let the tax go down below the amount charged in the previous year . . . but it will allow the tax to rise uncontrollably,” said MMTA President Louis Campion.