Sen. Walter A. Stosch, R-Henrico, center, chairman of the Senate Finance committee, gives members of the Virginia Senate a briefing of the transportation compromise at the State Capitol in Richmond, Va. Wednesday, Feb. 20, 2013. Senators listening at the table are, from left, Henry L. Marsh, III, D-Richmond, Senate Minority Leader Richard L. Saslaw, D-Fairfax, Janet D. Howell, D-Fairfax, Stosch, Charles J. Colgan, D-Prince William, Emmett W. Hanger, R-Augusta, and Charles W. Carrico, R-Grayson. (AP Photo/Richmond Times-Dispatch, Bob Brown).
RICHMOND, Va. (AP) — The General Assembly will vote by Friday on major tax reforms a bipartisan panel of senior legislators presented that would fundamentally change the way the state finances its roads for the first time in a generation.
The five delegates and five senators signed off Wednesday on a compromise that would yield nearly $900 million annually, replacing Virginia’s 17.5 cents-per-gallon gasoline tax with a 3.5 percent wholesale tax on gasoline. At current prices, that equals about 10 cents per gallon.
It would apply a 6 percent tax on diesel fuel, equal to about 22 cents per gallon at Wednesday’s average statewide price of about $3.70 per gallon.
By tying the tax proportionally to cost, supporters argue, it becomes a more reliable source of revenue than the 27-year-old tax based on Login to read more