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Virginia's Road to the Future Governor McDonnell's 2013 Transportation Funding and Reform Package

Virginia's Road to the Future Governor McDonnell's 2013 Transportation Funding and Reform Package
Virginia's Road to the Future: 2013 Transportation Legislation Update

On February 12. 2013, Virginia’s Senate Finance Committee approved, by a 9 to 6 vote, a piece of substitute transportation funding legislation that made the following changes:

  • An increase in the fuel tax from 17.5 cents per gallon to 22.5 cents per gallon.
  • The addition of a new 1 percent sales tax on wholesale sales of fuel with those funds to be for local transportation needs
  • An increase in transportation’s share of current sales and use tax from 0.50 to 0.55 percent with those additional funds to be dedicated to rail and transit.
  • An increase in all motor vehicle registration and weight based fees by approximately $15 with those funds to go to rail and public transportation.
  • The authorization of a state-wide local options sales tax of up to 1.0% dedicated to local transportation priorities. 

Transportation Funding Legislation (HB 2313) was passed  by the Senate on February 13, 2013.  Governor Bob McDonnell called the passage of this legislation “another step in creating a final plan for addressing Virginia’s transportation challenges on a long –term basis. “ 

For more information on Governor McDonnell’s 2013 Transportation Funding and Reform Package click here

In related news, on Thursday, February 14, 2013, Congress introduced the Marketplace Fairness Act, legislation that will help state and local governments collect an estimated $23 billion in taxes due on Internet and Mail-Order sales.  Revenue from the Marketplace Fairness Act would comprise 1/3 of Governor McDonnell’s 2013 Transportation Funding Legislation. 

 

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