The recommended Maryland gas tax and fee increases outlined in the Maryland Transportation Fund Blue Ribbon Commission’s final report on November 1, 2011, coupled with higher gas prices affect family budgets.
To evaluate the potential impact of these increases on the cost of driving; two hypothetical comparisons are made here using the AAA’s 2010 Cost of Driving Report as a guideline for a family budget. AAA has published this report annually for the past 60 years – “actual driving costs will vary based on individual driving habits, location, operating conditions and other factors.”
The following costs are detailed in the estimated annual cost of driving report:
Operating costs – gas per mile, total miles driving, total gas, maintenance, and tires.
Ownership costs – depreciation, insurance, taxes, license and registration, and finance charges.
Within the 2010 report, the gasoline price used to calculate per mile cost and total gas cost is $2.603 per gallon (The source of this rate is the late-2009 AAA’s Fuel Gauge Report.)
Three of the Blue Ribbon Commission recommendations are included in the hypothetical comparisons:
Cumulative 15 cents gasoline tax increase. (Report actually recommends a three year phase in period.)
$64 increase to registration fees
$14 increase to vehicle emission inspection fees
This is meant to be a limited review of the panel recommendations. Other recommendations contained in the final report are not considered here and they may result in additional costs.
The chart shown here illustrates the potential effect the recommended Maryland gas tax and fee increases may have on the family budget. The 
estimated range of annual cost increases are $143 up to $267, depending on the type of vehicle and miles driven. Budgets for less fuel efficient large sized vehicles driven longer distances are hardest hit by the proposed gas tax and fee hikes. For a 4WD sport utility driven 20,000 miles, the estimated annual cost of driving is increased $267 to $12,677. For an average sedan driven 10,000 miles, the estimated annual cost of driving is increased $143 to $7,872. This hypothetical comparison is not adjusted for inflation.
Because gasoline prices are higher today than the rate used in the AAA report, a second hypothetical comparison is prepared using the same recommended gas tax and fee increases above, but in this illustration today’s average gasoline price of $3.39 per gallon is used to calculate per mile cost and total gas cost. All other assumptions remained the same, non-inflation adjusted. (Source: AAA Fuel Gauge Report, Maryland Average Regular Daily Price per Gallon, 11/9/11.)
The diagram to the right illustrates that higher gasoline taxes and fees coupled with higher gasoline prices negatively affect the family budget. 
Depending on the size of the vehicle and length driven, the estimated range of annual cost increases are $480 up to $1,327. For a 4WD sport utility driven 20,000 miles, the estimated annual cost of driving is increased $1,327 up to $13,647. For an average sedan driven 10,000 miles, the estimated annual cost of driving is increased $480 up to $7,872.
Please link back to my blog: http://blog.pfadvisers.com/2011/11/10/how-maryland-gas-tax-and-higher-prices-affect-family-budgets/
Related resources:
AAA 2010 Driving Costs – http://www.aaaexchange.com/Assets/Files/201048935480.Driving%20Costs%202010.pdf
AAA Daily Fuel Gauge Report, http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp
Final Report to the Governor and Maryland General Assembly by the Blue Ribbon Commission on Maryland Transportation Fund http://www.msa.md.gov/megafile/msa/speccol/sc5300/sc5339/000113/014000/014109/unrestricted/20110933e.pdf 1 Nov. 2011
Motor Vehicle Administration Fee Listing http://www.mva.maryland.gov/About-MVA/FEE/default.htm#VehicleRegistration
Personal financial expert for women Christine Parker is an award-winning Certified Financial Planner™ and president of Parker Financial, LLC; an independent fee only registered investment adviser in the state of Maryland. http://blog.pfadvisers.com
This entry was posted on November 10, 2011 at 3:00 pm and is filed under Business, Commentary, Community, Opinions, Press Release. You can follow any responses to this entry through the RSS 2.0 feed.
How Maryland Gas Tax, Fees and Higher Prices Affect Family Budgets
The recommended Maryland gas tax and fee increases outlined in the Maryland Transportation Fund Blue Ribbon Commission’s final report on November 1, 2011, coupled with higher gas prices affect family budgets.
To evaluate the potential impact of these increases on the cost of driving; two hypothetical comparisons are made here using the AAA’s 2010 Cost of Driving Report as a guideline for a family budget. AAA has published this report annually for the past 60 years – “actual driving costs will vary based on individual driving habits, location, operating conditions and other factors.”
The following costs are detailed in the estimated annual cost of driving report:
Operating costs – gas per mile, total miles driving, total gas, maintenance, and tires.
Ownership costs – depreciation, insurance, taxes, license and registration, and finance charges.
Within the 2010 report, the gasoline price used to calculate per mile cost and total gas cost is $2.603 per gallon (The source of this rate is the late-2009 AAA’s Fuel Gauge Report.)
Three of the Blue Ribbon Commission recommendations are included in the hypothetical comparisons:
Cumulative 15 cents gasoline tax increase. (Report actually recommends a three year phase in period.)
$64 increase to registration fees
$14 increase to vehicle emission inspection fees
This is meant to be a limited review of the panel recommendations. Other recommendations contained in the final report are not considered here and they may result in additional costs.
The chart shown here illustrates the potential effect the recommended Maryland gas tax and fee increases may have on the family budget. The
estimated range of annual cost increases are $143 up to $267, depending on the type of vehicle and miles driven. Budgets for less fuel efficient large sized vehicles driven longer distances are hardest hit by the proposed gas tax and fee hikes. For a 4WD sport utility driven 20,000 miles, the estimated annual cost of driving is increased $267 to $12,677. For an average sedan driven 10,000 miles, the estimated annual cost of driving is increased $143 to $7,872. This hypothetical comparison is not adjusted for inflation.
Because gasoline prices are higher today than the rate used in the AAA report, a second hypothetical comparison is prepared using the same recommended gas tax and fee increases above, but in this illustration today’s average gasoline price of $3.39 per gallon is used to calculate per mile cost and total gas cost. All other assumptions remained the same, non-inflation adjusted. (Source: AAA Fuel Gauge Report, Maryland Average Regular Daily Price per Gallon, 11/9/11.)
The diagram to the right illustrates that higher gasoline taxes and fees coupled with higher gasoline prices negatively affect the family budget.
Depending on the size of the vehicle and length driven, the estimated range of annual cost increases are $480 up to $1,327. For a 4WD sport utility driven 20,000 miles, the estimated annual cost of driving is increased $1,327 up to $13,647. For an average sedan driven 10,000 miles, the estimated annual cost of driving is increased $480 up to $7,872.
Please link back to my blog: http://blog.pfadvisers.com/2011/11/10/how-maryland-gas-tax-and-higher-prices-affect-family-budgets/
Related resources:
AAA 2010 Driving Costs – http://www.aaaexchange.com/Assets/Files/201048935480.Driving%20Costs%202010.pdf
AAA Daily Fuel Gauge Report, http://fuelgaugereport.aaa.com/?redirectto=http://fuelgaugereport.opisnet.com/index.asp
Final Report to the Governor and Maryland General Assembly by the Blue Ribbon Commission on Maryland Transportation Fund http://www.msa.md.gov/megafile/msa/speccol/sc5300/sc5339/000113/014000/014109/unrestricted/20110933e.pdf 1 Nov. 2011
Motor Vehicle Administration Fee Listing http://www.mva.maryland.gov/About-MVA/FEE/default.htm#VehicleRegistration
Personal financial expert for women Christine Parker is an award-winning Certified Financial Planner™ and president of Parker Financial, LLC; an independent fee only registered investment adviser in the state of Maryland. http://blog.pfadvisers.com
This entry was posted on November 10, 2011 at 3:00 pm and is filed under Business, Commentary, Community, Opinions, Press Release. You can follow any responses to this entry through the RSS 2.0 feed.