Today the Maryland General Assembly will vote on the first major transportation funding package since the state gas tax was last adjusted for inflation in 1992.
The House bill (HB 1515) would retain the current 23.5-cent gas tax at current levels, but index it to inflation, and also apply a 1% sales tax to gasoline sales at the wholesale level, which would increase to 2% by January 2015, with further increases possible depending on federal action on an expected move in Congress to impose an national internet sales tax. If Congress enacts such a tax, Maryland would dedicate a portion of the proceeds to transportation. If not, the wholesale sales tax would be increased accordingly.
When fully implemented, the House package brings in a good portion of the $880 million per year the recent Blue Ribbon Commission found Maryland needs to invest now, to begin making up for decades of under-investment in its crowded and deteriorating transportation infrastructure. It would provide enough funding to meet maintenance needs and build major new Washington-area transit projects like the Purple Line and Corridor Cities Transitway — which would not be possible without this legislation.
This is a must-pass bill and now is the time for action. While it contains some language to safeguard dedicated transportation funds from being diverted in the future, the language in this bill probably dos not go far enough, so we are urging the Senate to look at strengthening this provision and continue to call for a separate initiative to create a consititutional “lock-box” on Transportation Trust Fund.
But area business owners and major employers, who have been calling on Maryland officials to boost transportation funding for more than a decade, and frustrated motorists and transit riders wasting time and money in one of our nation’s most congested regions, cannot afford to let the perfect be the enemy of the good. This is a good package – an urgently needed one – and will get our economy back on track more effectively than any other action the legislature could even consider taking this year.
Please visit our Take Action page to express your support for more jobs, better transit options and less traffic.