Virginia residents could see a higher sales tax — and the state could become the first in the country to shed its gas tax — if a transportation plan unveiled by Virginia Gov. Bob McDonnell passes the state's General Assembly during its 2013 session.
The five-year, $3.1 billion transportation overhaul is the governor's attempt to address some of the state's major road and infrastructure needs in coming years; $14 billion in projects are already underway across Virginia.
McDonnell said the 17.5 cent tax on gasoline — which accounts for more than 30 percent of Virginia's transportation revenues — was "dated," blaming inflation and better mileage on the dollar for making it a stagnant funding source.
Raising sales tax from 5 to 5.8 percent, the other cornerstone of the governor's proposal, would generate more than $600 million in additional funds, he said, a pool that will grow with the economy.
McDonnell's changes would ultimately give transportation a larger share of sales tax revenues.
which the General Assembly will begin to review Wednesday as it begins its 2013 session.
The plan was McDonnell's attempt to appease both Republicans, many of whom have spoken against any kind of tax hike, and Democrats, who have said they don't want to give more general fund money to transportation over education and other state priorities.
Americans for Tax Reform has issued a statement against the governor's plan, saying the proposal "as it stands now fails in its goal to prioritize transportation spending while avoiding tax increases."
Lt. Gov. Bill Bolling (R), who holds the tie-breaking vote in Virginia's split senate, backed the plan Tuesday.
Tell us: Do you think the governor's plan is a sustainable option for road maintenance and new projects? Which state priorities do you think deserve more or less funding?
There is more spent on maintaining I-66 and I-495 annually than the total amount of money spent on Bike and pedestrian improvements in Virginia over the past decade. But by all means, waste money by widening roads more and more... who am I... just a transportation engineer telling you that there is a finite limit to the benefit for road widening
There are many examples in VA where this is already true, particularly up and down the I64 corridor from the west end of Richmond to Tidewater. Places where, yes, the road could be widened, but would not yield any significant benefit compared to the cost involved.
Could not agree more!!!! Well put!!
As far as the gas tax, if it's gone; it wouldn't make much of a difference. Take it away, but instead tax fuel guzzlers like Land Cruisers and Sequoias. We should never be taxed for fuel, but instead taxed for owning the cars that use up a lot of fuel. It makes more sense.
McDonnell’s plan would hit the poor, while letting the richest Virginian’s (not to mention any out of state drivers passing through) off largely scot-free “Eliminating the gas tax paid by highway users and raising taxes on all other Virginians to pave our roads makes no sense”, said State Sen. Chap Petersen (D). “Indeed, eliminating our traditional road funding because cars are more efficient makes about as much sense as canceling your child’s college fund because tuition keeps rising”.