Maryland Gov. Martin O’Malley and members of the General Assembly are examining tax increases as part of a budget deal to close the state’s projected $1 billion shortfall in fiscal 2013.
The state Senate’s budget committee began reviewing tax proposals at a meeting in Annapolis last month, and O’Malley has indicated in recent days that new tax revenue might be necessary to close the state’s budget shortfall — especially now that federal stimulus funds have dried up.
“We need to be open to a balanced approach, including, if necessary, looking at revenues,” O’Malley said on WTOP radio. He offered no specifics but he noted that the General Assembly rejected his proposal last year to index the state’s 23.5-cent-per-gallon gasoline tax to inflation.
Lawmakers expect an increase to the gas tax, which gained traction in last year’s legislative session, will be on the table when the General Assembly convenes in January. Some lawmakers think the legislature will pick up the issue as soon as October, when the General Assembly is scheduled to hold a special session devoted to redistricting.
Other taxes being discussed include a levy on large-scale Internet companies, such as Amazon.com, that do business with Maryland companies and a special tax on snack foods — something that has failed in previous legislative sessions.
The budget committee also reviewed the effect of taxes on professional services, such as landscaping and house cleaning, but businesses are staunchly opposed to those proposals.
-Hayley Peterson
