Trucking Industry News: Governor Plans to Apply Sales Tax to Motor Fuels
The Maryland Motor Truck Association (MMTA) is closely following Maryland’s General Assembly, specifically Governor Martin O’Malley’s proposal to apply the state’s 6% sales tax to motor fuels. MMTA’s Board of Directors opposes any fuel tax increase that includes diesel.
Highlights of Governor O’Malley’s Plan
- Applying the state’s 6% sales tax to motor fuels, phased in at 2% per year over three years.
- There is a braking mechanism that slows the phase in if gas prices rise significantly in years two and three.
- This proposal will raise the cost of fuel by at least 18 cents per gallon.
- The sales tax would be applied to the retail price of motor fuel, based on the six-month average cost of the lowest grade of gasoline, minus federal and state excise taxes.
- The tax would be paid by the wholesaler/distributor as it first enters the state.
- The legislation also includes some modest protection that the monies will be used for transportation purposes, as well as restoration of some lost local transportation aid to counties and municipalities.
A full list of the bills that MMTA is tracking in the General Assembly is available at www.mmtanet.com.
If you have any questions about the Governor O’Malley’s Tax Plan, please contact Middleton and Meads by calling 410-752-5588 or click here today!
With three locations to serve you throughout Baltimore, Washington and Virginia, Middleton and Meads will keep you “on the road.” So go ahead and do what you do best and let us take care of the rest. Our service professionals are experienced and knowledgeable. That is why companies of all sizes depend on us – day in, day out, mile after mile.
The Middleton & Meads Company has a long and respected history in the transportation industry. We are a family owned and operated company through four generations, celebrating over 90 years quality of truck, bus and equipment repair and service.
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