On July 1, Maryland’s automatic gas tax goes into effect, increasing the price at the pump by nearly a nickel a gallon for most motorists.
The current gas tax is 42.7 cents per gallon. Starting Saturday, the new rate will be .47 cents. The diesel rate will be raised from 43.45 cents to 47.75 cents. An automatic gas tax happens annually at the rate of inflation. Over the last two years, the rate has increased by 30% due to inflation and surging fuel prices.
Maryland is one of only 8 states imposing a gas tax July 1 and has the fourth highest gas tax in the U.S. Under Maryland law fuel rates are adjusted each July based on the consumer price index. By law, the comptroller’s office must set the new state gas tax rate by June 1.
Money generated by the tax goes into a fund used to pay for roads and highways projects. The comptroller’s office offers more information about this year’s 20% increase.
