|More state transportation funds are needed for projects to relieve traffic congestion, including roads like Little River Turnpike as shown here.|
The Senate legislation differs greatly from a transportation bill passed by the House. A House-Senate conference committee will try to negotiate a compromise.
The Senate plan would:
- Increase the gas tax by 5 cents a gallon, for a total tax of 22.5 cents and tie future changes to the Producer Price Index.
- Add a 1 percent sales tax for wholesale gasoline purchases.
- Allow Northern Virginia and Hampton Roads to impose a 1 percent sales tax at their discretion for local transportation projects.
- Increase the state sales tax by 0.5 percent and target the new revenue for transportation.
The House bill adopts Gov. Bob McDonnell’s proposals to scrap the gas tax and raise the sales tax from 5 percent to 5.8 percent. The House bill would transfer a much larger share of general funds to transportation than the Senate bill. The House rejected the governor’s proposal to impose a $100 fee on hybrid vehicles. Both the House and Senate bills would increase the vehicle registration fee by $15.