30-Day Gas Tax Holiday in Effect in Maryland
Comptroller Peter Franchot has announced that Maryland’s gas tax is now suspended for 30 days, after legislation was passed by the General Assembly and signed by Gov. Larry Hogan today.
“This gas tax holiday returns $100 million to Marylanders’ wallets and should provide economic relief for motorists who have seen prices soar in recent weeks,” Comptroller Franchot said. “While I continue to believe that a three-month gas tax holiday would have offered more substantial savings and been easily absorbed due to the state’s historic surplus, any respite from the current pain at the pump is welcome.”
As the state’s chief fiscal officer and motor fuel regulator, Comptroller Franchot is charged with implementing the gas tax holiday, which runs through 11:59 p.m. on April 16. During the 30-day period, sales of regular gasoline and diesel products will not include the 36.1-cent-per-gallon state motor fuel tax or the 36.85-cent-per-gallon diesel fuel tax.
While the legislation does not mandate that retailers reduce their prices by 36 cents, the Comptroller’s Office is actively working with industry leaders and the state’s roughly 2,300 gas stations to encourage them to lower their prices so motorists realize the savings in full, as intended.
Consumers should be aware that the global oil market remains volatile, so while Marylanders will not pay the state gas tax for the next 30 days, the total per-gallon price will remain dependent on crude oil prices and global supply and demand. No legislation – and no gas station – can ensure a fixed price during the 30-day period, but consumers will pay less at the pump than they otherwise would have due to the tax holiday.
To ensure fairness and protect small business owners, Comptroller Franchot successfully added language to the bill providing refunds to businesses that already paid tax on their fuel shipments prior to the start of the 30-day period. To claim the advance refund, a business must measure their fuel inventory when the tax holiday begins and submit Form 779-R to the agency. Any distributors who have already collected tax prior to the holiday are still required to remit these funds to the Comptroller’s Office.
More information and frequently asked questions for consumers and retailers is prominently posted on the Comptroller’s website.
