Virginia General Assembly Passes Transportation Bill / Awaits Gov. Signature

Feb 26th 2013
Share this content

HB 2313, which passed the House 60 to 40 on February 22 and the Senate 25 to 15 the following day, would raise $880 million for transportation annually while eliminating motor fuel taxes and replacing them with wholesale taxes, effective July 1. It would also increase the sales tax rate on non-food items from 5 percent to 5.3 percent.

According to Gov. Bob McDonnell, the current 17.5-cent-per-gallon fuel tax is worth 45 cents on the dollar of its value in 1986. Under the bill, it would be replaced with wholesale taxes of 3.5 percent and 6 percent on gasoline and diesel fuel, respectively. Sales tax on non-food items would rise from 5 percent to 5.3 percent to allocate more general fund revenue to transportation.

The sales tax in the northern Virginia and Hampton Roads regions would rise to 6 percent, with additional funds used for transportation projects in those regions.

A registration fee of $100 for electric, alternative fuel, and hybrid vehicles would also go into effect, along with an increased levy on car sales from 3 percent to 4.3 percent.

The Governor is expected to sign the bill.


Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.