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Gas Tax or Higher Tolls? Both Could Become Transportation Funding Options in Virginia

Virginia's gas tax is a flat rate tax, but changes could be in the making.

 

Next year’s Thanksgiving road trip may be a little more expensive as Virginia officials grapple with how to adequately fund Virginia’s growing transportation infrastructure needs.

Gov. Bob McDonnell said earlier this month that raising Virginia’s gas tax, tying it to inflation or otherwise adjusting it is not off the table.

“I’m looking at a range of things,” McDonnell told reporters in Richmond. “I can tell you that every other major tax in Virginia—the sales tax, the corporate income tax, and the [personal] income tax—all fluctuate with economic activity because they’re a percentage. ... We’re looking at whether or not ... it should fluctuate with economic activity, like every other tax in Virginia.”

Right now, Virginia’s state gas tax is set at a flat rate of 17.5 cents per gallon (not including any federal tax). When gasoline prices go up, Virginia does not see any additional revenue—in fact, Virginia sometimes sees a little bit less revenue when commuters cut back on driving due to high prices. 

In the District and in Maryland, the gas tax is 23.5 cents per gallon plus federal tax, also a flat rate. In late 2011, Maryland Gov. Martin O’Malley proposed applying the state’s sales tax of 6 percent to gasoline purchases, but the proposal didn’t pass.

Ninety-two percent of respondents to a Quinnipiac University poll of Virginia registered voters agreed it is “very important” or “somewhat important” to improve the state’s roads and highways.

Quinnipiac surveyed close to 1,500 registered voters across Virginia in early November.

According to the survey:

  • Voters oppose 57 - 38 percent putting tolls on parts of Interstate 95 in the Commonwealth to pay for road repairs.
  • Given a choice, however, between tolls or a higher gas tax, voters prefer tolls 56 - 32 percent.

The margin of error in the survey was +/- 2.6 percentage points.

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Related Topics: Bob McDonnell, Gas Prices, Tolls, Virginia, and gas tax

David A. LaRock

8:31 pm on Tuesday, November 27, 2012

“Gov. Bob McDonnell’s administration said 40 transportation projects across the state would be gutted if the legislature included another $300 million in bonding for the extension of Metrorail to Dulles International Airport.” In 2012 the legislature approved $150 million.
BEWARE...The Dulles Rail people will be back in 2013 for more $$$ to fund the $6 billion boondoggle that will make traffic worse and developers rich.
If you want your project gutted or cancelled, tell your legislator to vote YES.
http://notollincrease.blogspot.com/

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RJ

4:06 pm on Wednesday, November 28, 2012

Nah....Metrorail to Dulles is good.

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Bob Bruhns

8:43 pm on Wednesday, November 28, 2012

If we keep approving projects that cost two times what they should cost, I suspect that there will soon be a tax on everything, including air to breathe. When are people going to take a look at the prices for Dulles Rail, also known as the Silver Line? $34,015 per space for parking garages that should cost $17,000 per space, $101 million for a Metro station that should cost more like $40 million, $250 million per mile when it should have cost more like $120 million per mile, and a toll-payment plan that will NEVER work.

Bring these prices down to earth, before scuttling 40 other transportation projects just to HELP pay for them! What is the MATTER with people???

Don't believe the cost could possibly be two times what it should be? Take a look at the US DOT Inspector General's Audit of MWAA and see the report about how MWAA was FUNNELING contracts to a mysterious "Contractor A" that was charging 1.3 to 3.3 times as much as other contractors charged for the same work. That's not a typo - 1.3 to 3.3 times as much as other contractors charged for the same work! It's on page 14 of this report (page 15 of the pdf):
http://www.oig.dot.gov/sites/dot/files/MWAA%20Final%20Report.pdf

Then read this report about the double prices of the Dulles Rail / Silver Line project:
http://bruhns.us/civic/DullesRail/Dulles-Rail---Silver-Line-overcost-report---Bruhns.pdf

Then sign the No Toll Increase petition, and tell your leaders to wake up!
http://notollincrease.blogspot.com/

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