Senate Panel Advances Transportation Bill

By: Virginia AP Email
By: Virginia AP Email

RICHMOND, Va. (AP) -- Gov. Bob McDonnell's transportation funding package is headed to the Senate floor.

The Finance Committee endorsed the Republican governor's proposal on a 10-5 party-line vote Thursday, a day after a House committee endorsed similar legislation. The bills will be up for floor votes next week.

McDonnell's proposal would eliminate the gas tax and raise the state sales tax from 5 percent to 5.8 percent, with the extra revenue going into transportation. It also would raise registration fees, impose a new $100 fee on alternative fuel vehicles and increase the portion of the sales tax already earmarked for highways.

If Congress passes legislation giving states authority to collect sales taxes on out-of-state online and catalog sales, that money also would go to transportation.


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