Comptroller says gas sales tax would hurt business, consumers

Annapolis, Md - Do you ever see anyone smiling when they get gas?

Faces glued to the display watching their money as it goes right into the tank.

Only to get burned away in a four cylinder engine that will demand another 30 dollar fill up in a few days.

That's closer 80 dollars if you have a big engine in an SUV.

Maryland Comptroller Peter Franchot say gas has become an emotional purchase for consumers.

 He says a gas tax is only causing one emotion, anger.

"With today's gas prices the additional gas taxes would make Maryland the fourth highest state for gas in the continental United States." Franchot says.

Flanked by industry lobbyist Franchot reiterated his stance against the tax.

He says his office has no indication how a gas tax would even be collected and depending on how it's collected it be a double blow to retailers and consumers.

Right now wholesalers pay the state's 23.5 percent gas tax before it gets the station and that cost is passed on.

If they have to collect a gas sales tax the industry says that would increase the cost per tanker load by anywhere from 17 to 19 hundred dollars on gas that hasn’t even been sold.

It would also raise transportation costs by two to six percent per truck load.

They say the worse would be 160 different tax rates because of factors such as grade of gas, formulation of gas where the gas comes from and by brand because prices and gas options change daily.

The industry says it would be a headache and a wallet ache for everyone.

"Every time a consumer comes in to fill up they hear it they ask how am I supposed to pay for this the consumer wants to know can you imagine putting 18 cents a gallon 20 cents a gallon all of a sudden what the consumer is going to say we know from our polls that we've done across the state consumers are opposed to this type of increase." Maryland Petroleum Distributors Spokesman Pete Horrigan says.

Another issue that is also involved in this is what the comptroller says is a lack of guarantee that money raised from any gas sales tax would actually go to the highway fund.

Franchot says he's never seen state government leave money in a fund and not touch it.