Virginia governor's proposed $3.1 billion transportation overhaul gives higher percentage of sales tax to projects, leaves tax on diesel in tact.
- GOVERNMENT
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Wednesday, January 9
By Mark Robinson, Capital News Service RICHMOND — With the General Assembly set to convene, Gov. Bob McDonnell proposed Tuesday increasing Virginia’s sales tax and abolishing its nearly 27-year-old gas tax, making Virginia the first state in the country to do so. The measures are a part of the governor’s proposed $3.1 billion plan to fund improvements to Virginia’s transportation system over the next five years. The funds would supplement $14 billion of transportation projects already under way in the commonwealth, the most in Virginia’s history. “Declining funds for infrastructure maintenance, stagnant motor fuels tax revenues, increased demand for transit and passenger rail and the growing cost of major infrastructure projects …
Governor's five-year, $3.1 billion transportation overhaul aims to fund major road and infrastructure needs. Tell us: Do you think the governor's plan is a sustainable option for road maintenance and new projects?
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, …
Jonathan Krall
3:28 pm on Thursday, January 10, 2013
Since vehicle miles traveled has been dropping in the USA for the past several years[1], maybe we should close the gap with a cut in new roads, combined with a smaller tax increase (the gas tax hasn't gone up in 20 years and has shrunk in constant dollars because of inflation). [1] http://www.ssti.us/2012/02/motor-vehicle-travel-demand-continues-long-term-downward-trend-in-2011/ more ›