MD Gas Tax Pause Supported By Gov. Hogan, Lawmakers: Report

MARYLAND — As average gas prices in Maryland hit $4.302 Thursday, Gov. Larry Hogan and top lawmakers have agreed to pause the gas tax, which typically comes in at roughly 37 cents per gallon, AP reported.

The change, which requires legislation, is likely to be finalized next week, Michael Ricci, Hogan’s spokesman, told AP.

“Increased revenue projections for this year and next year give us the flexibility to provide immediate relief to families,” House Speaker Adrienne Jones and Senate President Bill Ferguson said in a joint statement, according to AP. “This swift action will help ease the financial burden on everyday Marylanders while keeping the pressure on Vladimir Putin and the Russian oligarchs who have enabled him.”

Hogan voiced his support of ending automatic increases to the gas tax, and said he is working to put an emergency pause on the gas tax Thursday after the Maryland Board of Revenue Estimates said Maryland's budget surplus was reported as more than $7.5 billion this year, due to federal COVID-19 relief funds and state income tax, WBAL reported.

“At this time of global uncertainty due to Russian aggression, we are working with our legislative partners on an emergency suspension of the gas tax to help with the pain at the pump," Hogan said in a statement. "We also support ongoing efforts in the legislature to suspend automatic increases in the gas tax. And I have called on the Biden administration to increase domestic energy production to help lower costs. Now more than ever, we must come together to take bold, bipartisan action.”

Comptroller Peter Franchot, a candidate for Maryland governor, called on Hogan Thursday to use the budget surplus for a three-month gas tax holiday, and to support low-income families and people who have struggled to keep up with rising costs of necessities over the past year, WBAL reported.

The Consumer Price Index rose by 7.9 percent over 12 months, through the month of February, the Bureau of Labor Statistics reported. Gas, housing and food were large contributors to the increase, the Bureau said.

Hogan acknowledged the affect inflation can have on Marylanders, and said the state has a chance to help ease that burden.

“This report further proves that we have a once-in-a-generation opportunity to advance substantial tax relief for our families, small businesses, and retirees," Hogan said in a statement. "People across the country are being squeezed by surging inflation on everything from gas to groceries⁠—Marylanders, especially our retirees, deserve and need this relief."

This story was updated March 11 at 10:05 a.m.