Maryland Gov. Martin O'Malley on Monday night released a proposal that includes an increase in overall gasoline taxes and other measures to raise hundreds of millions of dollars annually in new money for transportation.
O'Malley, a Democrat, outlined the plan with Senate President Thomas V. Mike Miller, D-Calvert, and House Speaker Michael Busch, D-Anne Arundel, at a news conference. With the presiding officers in his corner, O'Malley stands a strong chance of ushering the measure through the Democrat-controlled Legislature.
The plan would apply a new sales tax on gasoline, starting at 2 percent in July. It would rise to 4 percent in July 2014. It also would reduce the current excise tax on a gallon of gas by 5 cents, from 23.5 cents to 18.5 cents. The plan would then index the excise tax to the consumer price index to adjust for inflation.