The Dangers Of Multi Federal And State Transit Taxes
As you may have witness during the State of The Union Address last night, big changes are coming to Federal and State Laws. The trucking industry is no exception.
Maryland’s General Assembly has been in session for one month and big changes are already underway as the state frantically searches for new sources of revenue to fund transportation projects such as highway construction and transit funding programs.
Just this month the Senate President, Mike Miller has introduced a bill that will tremendously impact the trucking industry. Here is what the bill pertains:
- The creation of 2 regional transit districts will happen for Baltimore and Washington DC. One in each metropolitan area and elected officials will serve on governing boards to issue bonds, set transit fares, and add a property tax on owners located in the metropolitan areas to pay for the State’s transit systems.
- Counties will have authorization to raise motor vehicle fuel taxes up to 5 cents a gallon on the wholesale level prior to the year 2017. The year 2017 the State will take the initiatives to impose the tax increase.
- A 3% sales tax on motor fuels will be implemented. Currently, motor fuels are exempt from sales tax.
This week, MMTA’s Legislative Committee has voted against this bill because the committee believes too many levels of government have the taxing authority privilege.
A taxing authority system as the one suggested in the bill is ripe for corruption such as excessive taxation, evasion and using tax revenue for non-transportation purposes.
This bill is just one of roughly 2,300 bills proposed.
If this bill gets passed it will impact the trucking industry in the following ways:
- Overweight and Over extended vehicle penalties will increase.
- Price caps on goods/ services/ transportation will be enforced for state emergencies.
- Prevention of Hydraulic Fracking on natural gas vehicles.
- No decal requirement on vehicles carrying controlled hazardous substances.
Contact Middleton and Meads by calling 410-752-5588 or click here today to prepare for Fleet Management, Maryland State, DOT, Chassis Inspections and more for your truck!
With three locations to serve you throughout Baltimore, Washington DC and Virginia, Middleton and Meads will keep you “on the road.” Our service professionals are experienced and knowledgeable. That is why companies of all sizes depend on us – day in, day out, mile after mile.
We work with you to provide the solutions to your transportation needs!
