Va. Governor's Transportation Bill Moves Forward

By: Virginia AP Email
By: Virginia AP Email

RICHMOND, Va. (AP) -- Gov. Bob McDonnell's transportation funding bill has cleared its first hurdles in the General Assembly, but it still has a long way to go.

The Senate Transportation Committee on Wednesday advanced the five-year, $3.1 billion funding package to the Finance Committee.

In the House Finance Committee, which clears tax and revenue legislation, more than a dozen transportation-related bills were either rolled into McDonnell's package or tabled.

The governor's bill would eliminate the state's 17.5-cent per gallon gas tax and replace it with a sales tax increase of less than a penny on the dollar. It also imposes a $100 fee on fuel-stingy hybrid cars.

The tax on diesel fuel remains. And part of the funding scheme relies on Congress passing a law mandating state sales tax collections for online purchases.


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