ANNAPOLIS – The Maryland commission charged with helping the state raise more than $800 million it needs for transportation annually is recommending increases in the gas tax and a slew of other tax increases and other fees beginning July 1. The biggest revenue generator the Blue Ribbon Commission on Transportation Funding recommends is a 5-cent increase in the state gasoline tax every year for the next three years, which would bring in $491 million annually. The increase would be the state’s first gasoline tax increase in 19 years, according to commission Chairman Gus Bauman.
The goal is to raise the tax gradually so people can plan around it, Bauman said. “Somebody may say, ‘You know, I’m not buying my kid a big minivan. I’m buying my kid that Ford Fusion.’ ”
The commission also is suggesting the state increase the titling tax, vehicle registration and other Motor Vehicle Administration fees, and fares across all modes of public transportation.
The panel cannot make the final decision about how much taxes should rise. It will submit formal recommendations to state lawmakers at the beginning of next month, with the hope that they will decide to increase the fees at the recommended rates starting next fiscal year.
The money earned will benefit infrastructure and other needs associated with every mode of transportation, from roads and highways to trains to airports.
The state needs $12 billion to cover its transportation needs, but Maryland officials are anticipating a $1 billion shortfall in fiscal 2013. The commission has been tasked with raising $870 million from taxes and transportation-related fees to help alleviate the burden.
At the same time, commission members were aware that Maryland residents are feeling financial pressure.
Although the commission considered raising sales and property taxes, as well as creating a sales tax for gas, commission members said they would prefer to avoid that route because residents may not be able to connect the dots between a sales tax and road renovations.
The commission also is urging legislators to pass a constitutional amendment preventing lawmakers from dipping into the state’s Transportation Trust Fund for purposes other than transportation unless the governor and General Assembly declare a fiscal emergency.
Although the trust fund is dedicated to pay for the state’s transportation infrastructure, Gov. Martin O’Malley has been transferring large amounts of money out of the trust fund to pay for other expenses. About $997 million had not been replaced as of February, according to the commission.
