ANNApolis - Maryland Gov. Larry Hogan and top legislative leaders agreed Thursday to a 30-day suspension of the state's gas tax amid rising prices at the pump.
Maryland's revenue projections jumped an additional $1.6 billion for the current and next fiscal years as a result of massive federal aid to address the coronavirus pandemic, state officials said.
"The increased revenue projections for this year and next year allow us to provide immediate relief to families," House Speaker Adrienne Jones and Senate Speaker Bill Ferguson said in a joint statement. "This prompt action will help ease the financial burden on everyday Marylanders while keeping pressure off Vladimir Putin and the Russian oligarchs who enable them."
The suspension of the gas tax, which is about 37 cents a gallon, is required by law.
"We expect this to be completed next week," Hogan's spokesman Michael Ricci wrote in an email. "We have agreed on a time frame."
The increase in revenue is in addition to several billions of dollars in budget surpluses that state lawmakers are considering as a way to shape the state budget for the next fiscal year, which begins July 1.
The new revenue projections, which include $867 million for the current fiscal year and $737 million for the next one, are largely due to an increase in personal and corporate tax collections.
Following the announcement of the revenue increase at the Revenue Estimates Board meeting, Hogan, a Democrat, and a Republican, both called for the gas tax to be suspended.
Hogan issued a statement after the meeting in support of the gas tax suspension -- and other tax relief he supports.
"This report further proves that we have a once-in-a-generation opportunity to provide substantial tax relief for our families, small businesses and retirees," Hogan said. "People across the country are being squeezed by rising inflation on everything from gas to groceries — Marylanders, especially our retirees, deserve and need this relief."
Franchot, the state tax collector whose office also regulates motor fuels, announced a three-month gas tax holiday as well as other economic incentives to help low-wage earners, small businesses and childcare providers. Asked for rounds, those who continue to fight. from the pandemic.
While the Comptroller congratulated the pace of settlement between the Governor and the presiding officers, he said more needs to be done.
"The unfortunate reality is that the economic blow at the gas pump as a result of the Russian invasion of Ukraine will be felt by Marylanders for more than 30 days," Franchot said, continuing to call for a three-month gas tax break.
Franchot continued to demand emergency checks of $2,000 for low-wage earners as well as $500 million for child-care providers and $500 million to help small businesses.
The General Assembly, controlled by Democrats, is considering a series of tax-relief measures. For example, the House of Delegates has already passed a package of legislation to help working and middle-class families, including cutting state sales taxes on items such as diapers, car seats and diabetes care products. Is.
The governor also expressed support for legislation to end the automatic annual increase in the state's gas tax based on inflation as measured by the Consumer Price Index.
"We shouldn't get out of here and give up on an automatic gas tax hike, not with what the people at the pump are paying right now. It was a terrible idea in the first place and is now at record levels of inflation and gas. Together we need to stop this,” Frederick County Republican Senator Michael Hough, who sponsored the bill, told reporters Wednesday.
The Comptroller's Office said that combined with a general fund balance of $2.5 billion through fiscal year 2021, Maryland has approximately $7.5 billion in additional revenue over a two-year period.