Quantcast

McDonnell Proposes Long-Term Transportation Funding Plan - NBC29 WVIR Charlottesville, VA News, Sports and Weather

McDonnell Proposes Long-Term Transportation Funding Plan

Posted: Updated: Jan 8, 2013 09:59 PM EST

Governor McDonnell has a radical new plan for long-term transportation funding in the state.

He wants to eliminate the state gas tax altogether, and raise the sales tax to support road maintenance and construction costs, meaning you'd pay less at the pump but more at the checkout counter.

The current 17.5 cents tax on a gallon of regular gasoline would disappear. In its place, McDonnell wants to increase the current sales tax to 5.8 percent - with all new revenue going to transportation funding.

Food and fuel would be exempt from the sales tax increase.

McDonnell also wants to increase the amount of existing general fund revenue allocated for transportation. He recognizes the bill has elements both sides will take issue with, but he says the time is now to act.

"For us to get a bill that is economically sound, that fixes the problem, and that will pass, there have to be a series of trade-offs," he said.

In the first five years, McDonnell projects the state will raise $600 million more by relying on the sales tax over the gas tax, arguing it's much more sustainable in the long term.

Virginia would be the first state in the country to get rid of its tax on gasoline.

In total, the governor's plan would pump $3.1 billion into highway, rail and transit systems by 2018 - with $1.8 billion going toward new road construction.

  • McDonnell Proposes Long-Term Transportation Funding PlanMore>>

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WVIR. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.