Maryland Senate Gives Final Approval to Gas Tax Hike

The Maryland Senate gave final approval to the state's first gas tax in just more than 20 years.

The Senate voted 27-20 on Friday for the measure, which now goes to Gov. Martin O'Malley.

The measure puts a new 1 percent sales tax on a gallon of gasoline beginning in July. It also includes a provision to raise the tax automatically to adjust for inflation. The price of gas will rise to about 4 cents more per gallon in July.

The bill also includes additional increases in future years. The sales tax would rise to 2 percent in January 2015 and 3 percent in July 2015.

It could rise to 5 percent in 2016 if Congress does not approve a measure allowing states to charge an Internet sales tax.

Copyright AP - Associated Press
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