Maryland’s gas tax reprieve will end on April 16, after the state’s House of Delegates voted against an amendment on Thursday that would have extended the holiday.
The extension came before the House via Senate Bill 215, a bill that would extend Maryland’s tax credit for energy storage systems. Lawmakers added an amendment to the bill that would extend the gas tax holiday by 45 days. While the bill passed, the amendment failed in a 82-47 vote.
Citing the nationwide rise in gas prices, Gov. Larry Hogan and state lawmakers agreed to suspend the state’s 37 cents-per-gallon gas tax in mid-March. Since then, the average price of gasoline in Maryland has dropped by 39 cents, according to the Baltimore Sun. That drop likely came as a result of shifting oil prices on the global market and the suspension of the gas tax.
House Majority Leader Eric Luedtke argued on Thursday’s vote that prolonging the pause would have cost Maryland another $150 million in tax revenue while impacting the state’s ability to improve infrastructure, according to Maryland Matters.
Meanwhile, ahead of the vote, state comptroller and Democratic gubernatorial candidate Peter Franchot urged lawmakers to extend the gas tax holiday. Franchot recently penned an op-ed calling for a 90-day extension.
“There is no question of affordability here,” Franchot wrote in a series of tweets Thursday. “Maryland has a historic $7.5 billion surplus, and we should use this opportunity to provide immediate financial relief to Marylanders as communities continue to struggle.”
Gas prices nationwide have hit near-record highs since the Russian invasion of Ukraine last month. In a March 10 tweet announcing the gas tax holiday, Maryland Gov. Larry Hogan called on the Biden administration to increase domestic energy production in an effort to curtail spiking prices.
In Virginia, meanwhile, Gov. Glenn Youngkin on Monday proposed that lawmakers suspend the commonwealth’s gas tax for three months. However, House Democratic leader Eileen FIller-Corn called the governor’s timing “outrageous” as the legislature’s special session had already concluded. In D.C., the gas tax remains at 29 cents-per-gallon.
As of Friday, the average cost of fuel in Maryland was $3.75 a gallon, down from last month’s average of $4.19, according to AAA.
Previously:
Maryland Officials Agree To Pause Gas Tax For A Month Due To Rapidly Rising Prices
Maryland’s 30-Day Gas Tax Holiday Begins Today. Here’s How It Works
Héctor Alejandro Arzate