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Gas tax proposal gets hearing this week

March 12th, 2012 by WCBC Radio

In Annapolis this week,  Governor Martin O'Malley  testifies before a pair of committees on his plan to impose the state's sales tax on gasoline.

The governor has called the vote on this proposal "a tough ask" for lawmakers.  Hearings will be held Wenesday.

However, the governor says it is necessary to generate money for highway projects.

The bill phases in the state’s 6% sales tax on gasoline over three years.

For the first three years the tax is in effect, the bill would halt tax collections for one year if gasoline prices increase 15% over a given year.

The bill also places limits on so called raids of the transportation fund, using highway money to balance the budget.

 Under the bill the governor would need to get a three-fifths majority of the legislature to approve the transfer along with the state treasurer.

Tax collections would also be halted until the money transferred is put back into the transportation fund.

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