» News

Va. governor considers doing away with state gas tax

Home - by - January 9, 2013 - 13:15 America/New_York - 11 Comments

Daily Caller

Virginia could become the first state to eliminate its gasoline tax if the state legislature votes to adopt Gov. Bob McDonnell’s alternative plan, which calls for raising the state sales tax and imposing additional vehicle registration fees in order to pay for roads throughout the state.

“We simply cannot continue to do what we have always done and expect this problem to go away,” McDonnell told the press. “The gas tax is a stagnant revenue source, and no changes to it will provide a reliable growth mechanism for transportation in the state.”

Under the plan, Virginia’s 17.5 cents-per-gallon gas tax — one of the lowest in the United States — would be eliminated, and the sales tax would be raised by 0.8 percent, with more sales tax revenue going towards transportation.

Additionally, drivers would pay an additional $15 annually in vehicle registration fees, while alternative fuel vehicle drivers would pay additional $100 fee that would go to transit system improvements.

McDonnell’s proposal is estimated to generate $884 million annually — $3.1 billion in funding for transportation over five years. The governor also estimates that $1.8 billion would go to highway construction over five years.

more

 

» 11 Comments

  1. hanoverfist

    January 9th, 2013

    I dont think for one minuet my gas price at the pump will fall 17.5 cents.

    Thumb up +5

     
  2. Jerry Manderin

    January 9th, 2013

    Just issue an Executive Order!

    Thumb up +3

     
  3. Stranded in Sonoma

    January 9th, 2013

    @hanoverfist — Of course it won’t. There are still other hidden taxes you pay when you buy gas: road use fees, transportation taxes, import duties, you even pay the employer’s share of social security taxes for all of the oil company’s employees.

    This is why politicians love income taxes and corporate taxes; they can be levied against consumers because they are hidden into the cost of all goods and services. Repeal the 16th amendment and pass the FairTax.

    Thumb up +7

     
  4. Noodengr

    January 9th, 2013

    My transparent tax code is the solution. The feds get one flat income tax rate across the board from EVERYBODY, no exceptions. States get one flat sales tax rate, and local gov’t get one flat property tax rate. This is the only income each level of gov’t can get AND the only money they can spend. NO deficits. We would all know how much money went to each and we could direct our elected representves on what to spend it on.

    Thumb up +6

     
  5. Extirpates

    January 9th, 2013

    As in any other state, the tax increase will nor bring in the anticipated revenue. Why? People do not like paying taxes and will avoid the behavior that causes them to pay more to the state.
    California has a huge tax increase last November and the revenue continues to decline.
    The best way to increase state income is to lower taxes.
    This is heresy to “Dumbocratic doctrine”.

    Thumb up +3

     
  6. we can't afford two cars anymore

    January 9th, 2013

    We had two cars when Obama took office. Now we can only afford one car. This guy is killing the American dream.

    Don’t vote for Liberals

    Thumb up +7

     
  7. bitterclinger

    January 9th, 2013

    But just try to get the gov or the other elected things to commit that the increased revenue will go to a “lockbox.”

    Ha ha ha ah ah ah aha ha ha ha ha!

    The transportation mtg one of the state senators held last week was terrifying. It was full of libs whining about “where’s my high-speed rail,” and “why don’t you raise the gas tax all you need?” My friends and I thought we were in the Twilight Zone.

    Thumb up +3

     
  8. Mary Jane Anklestraps

    January 9th, 2013

    Repealing a tax. lololol
    Riiiiight. They’re never repealed, just put onto something else.

    Thumb up +5

     
  9. Tim

    January 9th, 2013

    “… is a stagnant revenue source, and no changes to it will provide a reliable growth mechanism …”

    Translation: “We can’t get any deeper into your pockets in a steady, slimy, off the radar, ever-increasing fashion.”

    Thumb up +2

     
  10. RosalindJ

    January 9th, 2013

    What are the odds there’s room in the proposal somewhere leaving wiggle room to levy a use-by-mileage tax if the anticipated revenue isn’t raised? Pardon me for being cynical. I come by it honestly.

    Thumb up +2

     
  11. Chieftain

    January 9th, 2013

    Out here in Washington, the braniacs in Olympia are considering charging state drivers by the mile, in order to make up supposed lost revenue from the per-gallon gasoline tax. As cars get more efficient, (and fewer people drive because they are not working…) the state is looking at ways to make up for lost revenue.

    On one hand I’d love to see those Pious, Volt and other electric car drivers get a new tax shoved up their asses, but this will likely be in addition to the gas tax, not in place of it, so those of us that still drive will get double taxed. Since any new major road projects are sure to be paid with tolls, that means drivers are triple taxed…

    Thumb up +1