Maryland Gas Tax Halted For 30 Days Under Emergency Bill

MARYLAND — Maryland drivers will feel immediate relief at the gas pump after Gov. Larry Hogan on Friday signed an emergency suspension of the state's gas tax.

Maryland lawmakers in both the House and Senate unanimously approved a bill Thursday to pause collection of the state's gas tax for 30 days.

The legislation (SB1010/HB1486) to immediately suspend the tax makes Maryland the first state in the nation to enact an immediate halt of a gax tax, the governor's office said.

“This bipartisan action will provide some relief from the pain at the pump and it is possible because of the prudent fiscal steps we have taken, which have resulted in a record budget surplus,” Hogan said. “This is, of course, not a cure-all, and market instability will continue to lead to fluctuations in prices, but we will continue to use every tool at our disposal to provide relief for Marylanders.”

Maryland’s gas tax of 36 cents per gallon is paused for 30 days for both regular and diesel fuel. NBC Washington said the suspension runs through 11:59 p.m. on April 16.

Regular gas in Maryland averaged $4.16 a gallon Friday, according to AAA, while diesel was $5. On Thursday, the average was $4.20 for regular and $5.04 for diesel.

Brad Bell of ABC7 tweeted video of the prices dropping as the tax halted. A Shell station changed its regular prices from $4.29 a gallon to $3.93; premium dropped from $4.79 to $4.43.

The state set a new record high on March 11 when the price of gas averaged $4.30, AAA said.

Maryland Senate President Bill Ferguson tweeted he was pleased lawmakers and the governor took action immediately to suspend the state gas tax.

“Maryland leaders know that when there are problems that Marylanders are facing, we come together and we fix them,” Ferguson said.

Some state officials had lobbied for a 90-day pause in the gas tax.

“Perhaps a 90-day abatement would be good under the circumstances, because we know that under a 30-day hiatus on collecting the gas tax, you know, the average household might save 30 or 40 bucks, and with today’s prices, that’ll probably get you a couple loafs of bread and a pound of baloney, but it’s something," said Del. Haven Shoemaker, a Carroll County Republican and House minority whip, according to NBC Washington.

State estimates show Maryland could lose about $94 million in revenue under the suspension.

"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," State Comptroller Peter Franchot said in a release. "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."