As gas prices finally fall below $3 in parts of Maryland, will extra tax go away too?

Gas prices have been falling in America since the midterm election, approaching $3 a gallon and dipping below that marker in some areas, but the dramatic rise in prices earlier this year brought about a question yet unanswered by Maryland lawmakers.

Will the legislature act to unlink the gas tax from inflation?

Former Republican candidate for governor Kelly Schulz, once the state’s commerce secretary, campaigned on repealing the tax tied to inflation earlier this year when prices soared above $4 a gallon after the Russian invasion of Ukraine. The tax tied to inflation only equated to about 7 cents per gallon, but the already high prices had some State House Republicans calling for a special session of the legislature to stop the tax.

“We urge you to call a limited Special Session of the Maryland General Assembly in June to establish another gas tax holiday and stop the automatic gas tax increase,” wrote over two dozen Republican lawmakers in a May 24 letter to Republican Governor Larry Hogan and Democratic leaders, Senate President Bill Ferguson and House Speaker Adrienne Jones. The leaders did not convene a special session.

The increased tax, based on a 2013 law, took effect on July 1 soon after gas prices reached a peak of $5.00. The gas tax contributes to the state’s Transportation Trust Fund, used for road maintenance and other transportation projects.

The state’s tax collector, Comptroller Peter Franchot, then a Democratic candidate for governor, joined the plethora of politicians calling for the law’s repeal.

“This happened by like a robot, just like a computer, it was automatic,” said Franchot, in a May interview. “Hopefully, inflation will calm down and next year we can have a rational discussion as to whether the law [tying the gas tax increase to inflation] should actually exist. I don’t think it should.”

More:Gas tax in Maryland set to increase on July 1. Comptroller says hike tied to a 'bad law'

As the cost of gas creeps back below the price of a gallon of milk, the General Assembly is set to convene for its annual legislative session on Jan. 11, 2023. On Tuesday, the price of a gallon of gas in Maryland was $3.14, according to AAA, about two cents above the national average.

“Fuel prices across the board have been plunging back into territory more Americans feel is normal,” said Patrick De Haan, head of petroleum analysis at GasBuddy, an organization with an app that tracks price and fuel availability. In some Salisbury locations, gas prices have already dipped below $3 a gallon.

Over the last 12 months, the Consumer Price Index for all items increased to over 7 percent, according to the November report from the federal Bureau of Labor Statistics.

In an interview, Benjamin Orr, president and CEO of the Maryland Center on Economic Policy, said that the gas tax funds are vital for investments in transportation. The overall price of gas is driven by oil companies, said Orr, adding that the state's tax is a small part of the total price.

"The state is going to need that revenue in order to support those projects that connect people to jobs," he said.

Dwight A. Weingarten is an investigative reporter, covering the Maryland State House and state issues. He can be reached at dweingarten@gannett.com or on Twitter at @DwightWeingart2.

This article originally appeared on Salisbury Daily Times: With gas price finally falling, will Maryland's extra tax go away too?