Maryland House Bill HB144

Maryland 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Motor Fuel Tax Rates - Consumer Price Index Adjustment - Repeal

Impact

If enacted, HB 144 would result in a freeze on motor fuel tax rates, meaning that motorists would not see increases tied to inflation. Currently, the motor fuel tax rate is set at 23.5 cents per gallon for gasoline and 24.25 cents for special fuels, among other rates for various types of fuel. By eliminating the automatic adjustment, the bill aims to provide financial relief to consumers who would otherwise face higher fuel taxes as prices increase, thereby impacting their overall transportation costs.

Summary

House Bill 144 seeks to repeal the adjustment of motor fuel tax rates based on the growth in the Consumer Price Index for All Urban Consumers. Under the existing law, the motor fuel tax rates would be adjusted annually on July 1 based on this index, which tracks inflation and consumer prices. This adjustment was intended to ensure that tax revenues from motor fuel keep pace with inflation, thereby maintaining the state's revenue and budget for transportation and infrastructure needs.

Contention

The bill's proponents argue that the repeal of the CPI adjustment is crucial for reducing the financial burden on residents during times of economic uncertainty or rising costs. However, opponents may express concerns that this measure could lead to decreased revenues for state transportation projects, as the revenue generated from motor fuel taxes is essential for funding infrastructure maintenance and development. Thus, the debate hinges on balancing consumer relief with long-term investment in essential state services.