"It's Not Perfect" but Virginia House Reaches Compromise on Transpo Funding
Friday, February 22, 2013 - 05:04 PM
Six roller coaster weeks after Governor Bob McDonnell proposed a major transportation funding overhaul, the Virginia House of Delegates has approved a compromise measure to raise $3.5 billion over five years for roads and rails.
The House voted 60 to 40 -- with 25 Democrats providing key "yes" votes -- to send the measure to the state Senate. House minority leader David Toscano said, "it's not perfect but better than not approving any new money for transportation."
"There are things that I don't like about this, but I am willing to support it because I do think that even though it doesn't solve every problem, it solves a lot of problems," he said.
The bill replaces the 17.5 cents-per-gallon gasoline tax you pay at the pump with a 3.5 percent wholesale tax on gasoline AND a 6 percent tax on diesel. The state sales tax would also increase to 5.3 percent, with that additional revenue earmarked for transportation.
Republican Delegate David Albo of Fairfax says Northern Virginia will eventually receive $350 million a year for its needs. "The three funding sources are a .7 cent sales tax, a .25 percent fee when you sell a home, so on a $500,000 that's $1250, and a three percent hotel [tax]."
The legislation also imposes a $100 registration fee on hybrid and electric vehicles. State Senate approval is needed to approve these proposals.