Wednesday, January 9, 2013
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, …
Virginia governor's proposed $3.1 billion transportation overhaul gives higher percentage of sales tax to projects, leaves tax on diesel in tact.
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 …
Thursday, November 29, 2012
Virginia's gas tax is a flat rate tax, but changes could be in the making.
Next year’s Thanksgiving road trip may be a little more expensive as Virginia officials grapple with how to adequately fund Virginia’s growing transportation infrastructure needs. Gov. Bob McDonnell said earlier this month that raising Virginia’s gas tax, tying it to inflation or otherwise adjusting it is not off the table. “I’m looking at a range of things,” McDonnell told reporters in Richmond. “I can tell you that every other major tax in Virginia—the sales tax, the corporate income tax, and the [personal] income tax—all fluctuate with economic activity because they’re a percentage. ... We’re looking at whether or not ... it should fluctuate with economic activity, like every other tax in Virginia.” Right now, Virginia’s state gas tax …