Yes, but it's two separate taxes. First is the traditional per gallon gas tax tied to the CPI that goes up then the sales tax.
Barring extraordinary action by political leaders, Maryland motorists will pay more in state fuel taxes. Like many tax issues, the state's gas excise calculation is complicated.
thedailyrecord.com
Like I said, it's just complicated enough, like the Constant Yield for property taxes, that the average Marylander can't figure it out.
"Why did my property taxes go up?"
We didn't raise them. The rate is the same as last year.
"But they went up."
Of course, your house is worth more but we didn't raise the tax rate, it stayed the same.
"Oh." (questioner walks away muttering because he doesn't get it)
I saw that play out dozens, if not hundreds, of times over the last almost forty years. It's set up so that legislators at every level can truthfully say that they didn't raise the tax rate, your taxes went up because your house is worth more. What they don't say is that the Constant Yield calculation said that the tax rate should have gone down to maintain the same level of funding (which really can't be done, governments have the same inflationary pressures as everyone else).
It can become interesting. If this year's tax rate is $1.00/hundred and the Constant Yield drops it to $0.90/hundred you can raise it to $0.99/hundred and truthfully say you cut taxes. Your property tax will still go up but the tax rate was cut.
Along about next April/May notice the public hearings for the upcoming budget. One will be for the County/Town raising the tax rate above the Constant Yield. The other will be for the budget itself.
