2013 Maryland Code
TAX - GENERAL
§ 9-306 - Tax rates -- Average annual retail price as basis [Section subject to contingent abrogation].


MD Tax-Gen Code § 9-306 (2013) What's This?

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Average annual retail price" means the 12-month average retail price per gallon of motor fuel purchased in the State determined in accordance with subsection (d) of this section.

(3) "Sales and use tax equivalent rate" means the per gallon tax rate calculated based on a percentage of the average annual retail price of motor fuel in accordance with subsection (e) of this section.

(b) Comptroller to determine and announce average annual retail price of motor fuel and sales and use tax equivalent rate. -- On or before June 1, 2013, December 1, 2014, June 1, 2015, and June 1 of each subsequent year, the Comptroller shall determine and announce:

(1) the average annual retail price of motor fuel; and

(2) the sales and use tax equivalent rate effective on the first day of the following month.

(c) Application and collection of taxes. --

(1) The sales and use tax equivalent rate shall be added to the motor fuel tax rates specified in § 9-305(a)(2), (3), and (5) of this subtitle and collected in the same manner as the motor fuel tax.

(2) Except as otherwise expressly provided by law, all references to the motor fuel tax in State law and regulations apply to the sales and use tax equivalent rate imposed under this section.

(d) Computation of average annual retail price. -- The Comptroller shall determine the average annual retail price of motor fuel:

(1) using data compiled by the Oil Price Information Service or another generally recognized and reliable source of information; and

(2) based on prices for regular unleaded motor fuel, excluding federal and State taxes, reported during the 12 months ending on the last day of the second immediately preceding month.

(e) Computation of sales and use tax equivalent rate. -- The Comptroller shall determine the sales and use tax equivalent rate by:

(1) multiplying the average annual retail price by the percentage rate specified in subsection (f) of this section; and

(2) rounding the product to the nearest tenth of a cent.

(f) Percentage rate for calculation of sales and use tax. -- The percentage rate used to calculate the sales and use tax equivalent rate shall be:

(1) 1% for the determination made on June 1, 2013;

(2) 2% for the determination made on December 1, 2014; and

(3) 3% for the determination made on June 1, 2015, and June 1 of each subsequent year.

(g) Inventory of motor fuel held at close of business prior to increase for purposes of remitting additional taxes due. -- The Comptroller shall require any person possessing tax-paid motor fuel for sale at the start of business on the date of an increase in the sales and use tax equivalent rate under this section to compile and file an inventory of the motor fuel held at the close of business on the immediately preceding date and remit within 30 days any additional tax that is due on the motor fuel under this section.

§ 9-306 - Tax rates -- Average annual retail price as basis [Effective December, 2015 contingent on enactment of regulations].

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Average annual retail price" means the 12-month average retail price per gallon of motor fuel purchased in the State determined in accordance with subsection (d) of this section.

(3) "Sales and use tax equivalent rate" means the per gallon tax rate calculated based on a percentage of the average annual retail price of motor fuel in accordance with subsection (e) of this section.

(b) Comptroller to determine and announce average annual retail price of motor fuel and sales and use tax equivalent rate. -- On or before December 1, 2015, June 1, 2016, and June 1 of each subsequent year, the Comptroller shall determine and announce:

(1) the average annual retail price of motor fuel; and

(2) the sales and use tax equivalent rate effective on the first day of the following month.

(c) Application and collection of taxes. --

(1) The sales and use tax equivalent rate shall be added to the motor fuel tax rates specified in § 9-305(a)(2), (3), and (5) of this subtitle and collected in the same manner as the motor fuel tax.

(2) Except as otherwise expressly provided by law, all references to the motor fuel tax in State law and regulations apply to the sales and use tax equivalent rate imposed under this section.

(d) Computation of average annual retail price. -- The Comptroller shall determine the average annual retail price of motor fuel:

(1) using data compiled by the Oil Price Information Service or another generally recognized and reliable source of information; and

(2) based on prices for regular unleaded motor fuel, excluding federal and State taxes, reported during the 12 months ending on the last day of the second immediately preceding month.

(e) Computation of sales and use tax equivalent rate. -- The Comptroller shall determine the sales and use tax equivalent rate by:

(1) multiplying the average annual retail price by the percentage rate specified in subsection (f) of this section; and

(2) rounding the product to the nearest tenth of a cent.

(f) Percentage rate for calculation of sales and use tax. -- The percentage rate used to calculate the sales and use tax equivalent rate shall be:

(1) 4% for the determination made on December 1, 2015; and

(2) 5% for the determination made on June 1, 2016, and June 1 of each subsequent year.

(g) Inventory of motor fuel held at close of business prior to increase for purposes of remitting additional taxes due. -- The Comptroller shall require any person possessing tax-paid motor fuel for sale at the start of business on the date of an increase in the sales and use tax equivalent rate under this section to compile and file an inventory of the motor fuel held at the close of business on the immediately preceding date and remit within 30 days any additional tax that is due on the motor fuel under this section.

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