Maryland Senate Bill SB737

Maryland 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

Cost of Living Assistance Act of 2022

Impact

The bill is expected to have a significant effect on state revenue derived from motor fuel taxes during the freeze period. By maintaining current tax rates, it aims to alleviate some financial burdens on residents in light of rising living costs. Once the freeze ends in 2024, the tax rates will revert to being adjusted based on the Consumer Price Index, which could lead to an increase in tax rates if the economy shows inflationary growth. The bill supports stability in fuel pricing, which is critical for households and businesses alike.

Summary

Senate Bill 737, titled the Cost of Living Assistance Act of 2022, aims to modify the existing motor fuel tax rates in Maryland. This legislation intends to ensure that the tax rates remain stable until June 30, 2024, by freezing the rates that were in effect as of July 1, 2021. During this freeze period, the tax rates will not be subject to the annual adjustments that typically reflect changes in the Consumer Price Index, which could otherwise increase the tax burden on consumers and businesses.

Contention

Notable points of contention surrounding SB737 include the debate over the effectiveness of freezing tax rates as an immediate relief measure versus the long-term implications this may have on state funding for transportation and infrastructure projects reliant on fuel tax revenues. Critics may argue that while the freeze could provide relief in the short term, it may hinder the ability of the state to properly fund necessary services and projects funded by these taxes once adjustments are reinstated.