Maryland Senate Bill SB337

Maryland 2022 Regular Session

• Introduced: 1/20/22
• Refer: 1/20/22

Caption

Motor Fuel Tax Rates – Consumer Price Index Adjustment – Repeal

Impact

The implications of SB337 could significantly impact state laws surrounding transportation funding and revenue generation. By removing the CPI adjustment, the state may see a decrease in annual revenue from fuel taxes, particularly during periods of rising inflation. This could, in turn, affect the budget allocated for state road maintenance, infrastructure development, and transportation projects, potentially leading to long-term effects on public transportation and road safety if funding does not keep pace with needs.

Summary

Senate Bill 337 seeks to repeal the requirement for annual adjustments of motor fuel tax rates based on the growth of the Consumer Price Index (CPI). Under current law, these adjustments have allowed the tax rates on gasoline and other fuels to fluctuate in alignment with inflation. By eliminating this requirement, the bill aims to stabilize tax rates and potentially prevent increases that would occur due to inflationary pressures. The intent behind this change is to provide more predictability for consumers and businesses that rely on fuel for transportation and operations.

Contention

There may be notable points of contention surrounding this bill. Proponents argue that the repeal will provide financial relief to drivers by preventing automatic tax increases based on economic conditions. However, critics may raise concerns about long-term funding for infrastructure as the CPI adjustment is designed to ensure that tax revenues keep pace with rising costs associated with road and public transport maintenance. Discussions could also revolve around how the state plans to address any shortfalls in revenue that may arise due to this repeal.