Trucking Industry News: Sales Tax to be Added on Motor Fuels

One of the hottest topics of the Maryland General Assembly has been the numerous taxes and other fees proposed by the Governor in his annual budget. These include:

  • – Reducing itemized mortgage deductions
  • – Lowering citizens’ income tax exemptions
  • – Increasing the tax on certain tobacco products
  • – Adding a sales tax for online purchases
  • – Applying Maryland’s 6% sales tax to motor fuels


The last proposed tax hike rose more than a few eyebrows, as it would raise the cost of fuel anywhere from 18 to 23 cents per gallon. However, there are still several questions that have not been answered. These questions include:

  1. Will it be applied at the wholesale or retail level?
  2. Does the proposal include diesel fuel or only gasoline?
  3. How will it impact filings under the International Fuel Tax Agreement?
  4. Will there be a phase-in (expected to be 2% per year over 3 years)?
  5. Will the money go to support the Transportation Trust Fund since the sales tax normally goes to support the General Fund?

Until the Governor formerly introduces his plan, speculation will continue.

Other bills that have been introduced this session that may impact the transportation industry include bills that would:

  • Require legislative approval before a toll increase.
  • Change the off-load policy for perishable products on overweight trucks.
  • Expand the MD State Police’s authority to mirror a portion of Parts 385 and 386 of the Federal Motor Carrier Safety Regulations.
  • Prohibit trucks over 48 feet total length from traveling on Maryland Route 212.
  • Prevent transfers of monies out of the Transportation Trust Fund.
  • Remove the presumption that a paid worker is an employee rather than, perhaps, an independent contractor.
  • Use vehicle height detectors in Baltimore City to enforce truck time-of-day restrictions.
  • Redefine those Class E trucks and Class F tractors that are eligible for historic vehicle registrations.

A full list of bills impacting the industry is available at

If you have any questions about the Governors’ Budget Proposal or any other Bills Affecting the Trucking Industry, 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.

We work with you to provide the solutions to your transportation needs!

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Maryland Motor Truck Association – MMTA E-News