Motor fuel tax suspension comes to end; Pleas for extension fall on deaf ears

     The end of April brought the end of the gas tax holiday, which removed the 36.1 cents per gallon of gasoline, and 36.85 cents for diesel tax. The Maryland Comptroller’s advocated for a 90-day hold on the tax, but a 30-day holiday was placed into effect in mid-March. 

     The holiday was different from sales tax holidays because of how taxes on gasoline work, typically the tax is “paid by the retail owner/seller as soon as he/she receives the gasoline in their tanks. In essence, that tax is pre-paid by the station owner before you even fill up your tank!” According to the Comptroller of Maryland.

     The holiday, which ended on April 16 at 11:59 p.m., marked the end of Maryland’s state gas prices being around $3.722, as it was on average for regular gasoline on April 12, to $4.05 average for regular gasoline on April 21. Under the holiday, the state saw a 39-cent drop in the average price of gasoline, according to the Baltimore Sun.

     Unfortunately, Maryland’s House of Delegates did not pass an extension, with an “amendment to extend the suspension for another 45 days defeated 47 to 82,” according to Delmarva Now. 

     Del. Brenda Thiam (R-Washington) was one of the lawmakers who advocated for the amendment of Senate Bill 215, which would have extended the holiday, according to WTOP News. “Many are still struggling,” Thiam said. “Though we know this is a short-term relief, it’s a necessary relief.” The amendment did not pass, even though the bill that it was a part of did. 

     The state is forced to walk a slippery slope between relief and maintaining the state. “We want to give the public relief. However, it is costing our transportation fund that takes care of highway projects and bridge projects $100 million a month,” Delegate Steve Johnson of District 34A said. 

     Maryland’s Comptroller and governor candidate, Peter Franchot defended the holiday in an Op/Ed in Maryland Matters. He stated “Maryland has a historic $7.5 billion surplus; the price tag of a 30-day gas tax holiday is $100 million. Clearly, it’s a present-day investment that doesn’t have long-term fiscal consequences.”

     Franchot added that “motorists would undoubtedly welcome a longer gas tax holiday leading up to summer travel season. And let’s be honest, what politician wouldn’t love to tout their support for this when they’re knocking on doors and speaking to voters.”

     Despite the record amount of surplus the state had at the time, Maryland had used part of this surplus to “backfill the Transportation Trust Fund so that transportation projects would not be delayed,’ said state delegate Eric Luedtke said. But because the General Assembly already passed the state budget, it cannot backfill the fund again and another extension would create a shortfall.” According to WTOP News.