Slight Rise in Taxes Could Lead to More Money For Roads

Posted on Feb 22, 2013

Virginia House of Delegates passed a transportation funding plan that would increase sales tax from 5% to 5.3%, while decreasing Virginia fuel tax.  The plan would cut the gas tax by 33% from 17.5 cents a gallon to 3.5 cents a gallon.   The percentage increase would produce about $880M a year for Virginia roads, rail, and mass transit.  The new plan also calls for an appointment of regional authorities in Northern Virginia and Hampton Roads to raise more funding for transportation in those respective areas.  

The funding plan was first introduced by Governor Bob McDonnell and has since been edited by Democrats and Republicans in the House of Delegates.  The plan is expected to be taken up by Virginia Senators for debate later this month.

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