Don't Force Drivers To Subsidize Transit

Once again, Virginia has beaten Maryland to the punch regarding taxes on business and consumers. Virginia eliminated its gas tax completely and replaced it with a 3.5 percent sales tax on the wholesale price of gasoline. Gov. Martin O'Malley's new tax increase proposal would reduce the gas tax rate 5 cents but add a sales tax to the retail price of gasoline and diesel, resulting in a 63 percent increase in the tax on gas and a 90 percent increase in the diesel tax.

Only in Maryland would we claim to "reduce" taxes in a way that results in increases — and leaves Maryland retailers at a devastating competitive disadvantage. The Virginia tax rate in particular will be almost 28 cents per gallon less than Maryland's, and we will have the highest fuel tax rate compared to all our surrounding states. Most of Maryland's approximately 2,300 gas stations are operated by small businesses, and many are located within close proximity to our neighboring states. These increases will make our small businesses uncompetitive with their nearby, out of state competitors.
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