McDonnell Officially Signs Transportation Funding Bill
Governor Bob McDonnell
The first major change innearly three decades to the way Virginia pays for roads, rail and transit isnow officially law. Governor Bob McDonnellsigned a transportation funding bill into law Monday afternoon on the steps ofthe State Capitol.
The last time the statemade big changes to its road funding formula it was 1986. Ronald Reagan wasnearing the end of his second presidential term, and Top Gun was a blockbusterhit.
Now, 27 years later on thesteps of the state Capitol, McDonnell signed the transportation funding billpassed by the 2013 General Assembly in February. The measure will increasefunding for road, rail, and transit projects by about a billion dollars a yearwhen fully implemented.
Supporters say it willhelp reduce congestion in urban areas and make Virginia more attractive forbusinesses.
It's a law many say willdefine McDonnell's legacy as governor.
"I really do count itas a significant bipartisan achievement – 43 members of both parties being ableto come behind a long-term transportation funding solution. Something that'savoided the legislature now for many years," McDonnell said.
The bipartisan measurereplaces the state's 17.5-cent tax on gasoline with a 3.5 percent wholesale gastax, and 6 percent tax on diesel. It will also increase the sales and use tax,funneling that revenue into transportation.
The law will also increasethe titling tax on new cars, and a $64 for alternative fuel vehicles. The lawwill go into effect July 1.
Sign Up for Email Alerts
Sign up to receive NBC29 news and weather updates in your inbox daily.