Small businesses hit hard by new gas taxes in Virginia and Maryland

[cpzilliacus]

Washington Post: Small businesses hit hard by new gas taxes in Virginia and Maryland

Jamie Smith has no idea how some of his employees are going to get to work.

His Baltimore-based plumbing company is moving at the end of April, but that's not the reason for the concern. It's due to a change in company policy, as Smith can no longer afford to let his workers take the firm's service trucks home at night – a decision driven by the same factor that's forcing him to uproot his business.

It all comes down to the price of gas.

"I know I'm going to have some problems, because some of our guys don't have cars, so I'm really not sure how they're going to commute,"  said Smith, owner of Mr. Rooter Plumbing of Greater Baltimore. "But our fuel costs keep climbing, and I have to do something. It's not ideal, but we don't have many options."

Smith's company is one of many in the region bracing for an even steeper increase in gas prices, as state lawmakers in Maryland and Virginia recently approved new fuel taxes. Meanwhile, federal regulators are moving forward on new rules that could drive the price at the pump even higher nationwide.

In Maryland, gas taxes are expected to rise by about 4 cents a gallon starting in July. By mid-2016, legislative analysts estimate the tax will rise by 13 to 20 cents per gallon.