Maryland fuel taxes set to spike in July

July 1, Maryland’s sales tax rate on fuel purchases will start a several year increase, starting with a 1 percent rate July 1 and moving to a 2 percent rate in January 2015, then 3 percent in July of the same year.

Moreover, if the state’s Congress does not act by January 2016 to approve a sales tax measure on Internet purhcases, the rate will move to 4 percent that month and then 5 percent in July of 2016.

A 3 percent tax rate would yield roughly a 10-cent increase in the price of a gallon of fuel, said the Maryland Motor Truck Association, as the tax hikes would be based on the average retail price of the lowest grade of gas after subtracting state and federal taxes.

Maryland Gov. Martin O’Malley signed the bill — the Transportation Infrastructure Investment Act — May 16.

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