RICHMOND - Legislators in Virginia have reached a deal to
convert the state€™s 17.5 cents per gallon motor fuels tax to a wholesale tax on
gas, reports The Virginian-Pilot.
A full vote is expected
later this week and would then head to Gov. Bob
McDonnell for his signature. The Washington Examiner says that the
governor€™s "legacy" transportation plan "would pay for much-needed
repairs to crumbling roads and fund new transportation projects for one of the
most congested highway networks in the country."
The news source adds that compromise plan would raise $870
million a year by eliminating the 17.5 cents-per-gallon gas tax and replacing
it with a 3.5% tax on wholesale gasoline €" 6% for wholesale diesel. It would
also increase the states sales tax from 5% to 5.3%, as well as tack on a $100
annual fee for owners of alternative fuel vehicles. Also, the title tax on cars
and the title tax on cars will increase from 3% to 4%.