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Virginia House passes highway reform bill; Senate vote next

Gov. Bob McDonnell

By Bob Lewis
The Associated Press

2/22/2013

RICHMOND, Va. — Virginia's House of Delegates has voted to approve what would become the first major reform in a generation of the state's system for financing its highway network.

Friday's vote was 60-40.

If the Senate follows suit, that puts the legislation in front of Gov. Bob McDonnell, who put transportation at the forefront of his policy agenda and has staked his legacy on its passage.

The bill replaces Virginia's 17½ cents-per-gallon retail gasoline tax with a 3.5 percent wholesale tax on gasoline and a 6 percent levy on diesel fuel.

It also boosts statewide sales taxes from 5 percent to 5.3 percent and uses more of the existing sales tax, increases the titling tax on car sales and adds a $100 fee to the purchase of fuel-sipping hybrid vehicles.

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JB Hunt