By Kendall Miller, Public Involvement and Title VI Administrator

On February 22^nd, 2013, Virginia’s House of Delegates voted to pass a comprehensive long-term transportation funding and reform package for Virginia, with the State’s Senate following suit on February 23^rd. Slated to be signed into law by Governor Bob McDonnell, the package is the first comprehensive overhaul of the way Virginia pays for its transportation system that the legislature has approved since 1986.

The package will generate approximately $880 million annually statewide and includes regional components that will raise approximately $300-350 million each year for Northern Virginia, and $175-$200 million each year for Hampton Roads.

The following are some of the key provisions of the transportation funding and reform package:

• Eliminates the 17.5 cents per gallon gas tax
• Implements a 3.5% tax on motor fuel at the wholesale level
• Implements a 6% tax on diesel at the wholesale level
• Increases the statewide sales & use tax from 5% to 5.3% Increases the motor vehicle titling tax from 3% to 4.3%
• Implements a $100 fee on alternative fuel vehicles 
• Increases the share of the sales & use tax that is dedicated to Transportation from 0.50% to 0.675%
• Provides a dedicated funding source for the Mass Transit and Intercity Passenger Rail Fund (IPROC) - Amounts generated by a portion of the 0.3% increase in general sales tax increase will be used to support rail and transit projects in the Commonwealth (0.125%). Amounts distributed - 40% for rail and 60% for transit.
• Provides for a 0.70% sales tax increase in Hampton Roads and Northern Virginia to fund local road improvements.
• Prohibits tolling on I-95 south of Fredericksburg without General Assembly approval.

Declaring February 23^rd, 2013 “A historic day in Virginia”, Governor Bob McDonnell cited the way in which the legislature worked together across party lines the “Virginia Way” of cooperation and problem solving.  To view the Governor’s February23^rd, 2013 Press Release, click here.