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Md. Senate gives final approval to gas tax hike

Friday - 3/29/2013, 4:11pm  ET

BRIAN WITTE
Associated Press

ANNAPOLIS, Md. (AP) -- The Maryland Senate has given final approval to the state's first gas tax in just over 20 years.

The Senate voted 27-20 on Friday for the measure, which now goes to Gov. Martin O'Malley.

The measure puts a new 1 percent sales tax on a gallon of gasoline beginning in July. It also includes a provision to raise the tax automatically to adjust for inflation. The price of gas will rise to about 4 cents more a gallon in July.

The bill also includes additional increases in future years. The sales tax would rise to 2 percent in January 2015 and 3 percent in July 2015.

It could rise to 5 percent in 2016, if Congress does not approve a measure allowing states to charge an Internet sales tax.


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