2013 General Assembly Update: Components of Transportation Plan
- The proposal scraps the state's 17.5 cent per gallon gasoline tax for a 3.5 percent wholesale gasoline tax and 6 percent wholesale diesel tax. It raises the state sales tax from 5 percent to 5.3 percent.
- The package includes a $100 annual fee on alternative fuel vehicles and raises the sales tax on new and used automobiles from 3 percent to 4.3 percent.
- It also increases the portion of the sales tax dedicated to transportation from 0.5 percent to 0.675 percent over five years. Gov. Bob McDonnell had initially proposed an increase to 0.75 percent.
- The plan also increases the amount of sales tax dedicated to education from 1.125 percent to 1.25 percent.
- The proposal keeps in place McDonnell's plan to use the bulk of increased sales tax revenue that would be generated if Congress passes the Marketplace Equity Act, which would require online retailers to remit sales tax to states. While the bulk of those funds would go to transportation 1.25 percent would be dedicated to education and 1 percent would go to local governments, half of which would go to local transportation projects.
- Still under consideration, the package also includes regional transportation funding components for Hampton Roads and Northern Virginia. The working plan would raise additional revenue in Hampton Roads of between $175 and $200 million, and $300 to $350 million annually in Northern Virginia.
Note: The House needs 51 votes for approval; the Senate requires support from 21 of its 40 members.
We urge you to contact your legislator and ask them to:
- Put their differences aside, work together and compromise on a sustainable, long-term transportation funding solution that both the House and Senate will pass.
- Find a solution that will ensure Virginia remains an attractive and economically vital place in which to live, work and raise a family.
Click the link below to send a message to your legislator: