Virginia State Senate Proposes 6-Cent-Per-Gallon Gas Tax

Roanoke, Virginia -- Transportation funding has become an increasingly hot topic in Virginia over the past several years. In 2007, Governor Tim Kaine created Abuser Fees, which were surcharges inflicted on top of fines for traffic violations. The Transportation Funding and Reform Act of 2007 also created new regional officials who had the ability to tax. These regional officials were found to be unconstitutional by the Virginia Supreme Court. Originally, this act was supposed to help improve the transportation infrastructure (including improving roads and bridges), increasing mobility, and reducing congestion. Faced with this new predicament, the Governor and General Assembly are back to the old drawing board.

Virginia is facing a minimum of a $1 billion shortfall in this transportation funding. Governor Kaine began the dialogue by proposing a tax increase which would include raising the motor vehicles sales tax 4 percent. Virginia's yearly car registration fee would increase by $10 per car. A 1 percent retail sales tax rise would be seen in the counties that comprise Northern Virginia and Hampton Roads. A special session of the Virginia General Assembly was called to begin on June 23rd to hammer out the transportation issue. The Virginia Republicans are against raising taxes, especially in these wild economic times, so this session could carry on for some time.

The Senate proposed a 6-cent per gallon gas tax increase to take place over the next 6 years. This increase would make up the difference in the shortfall of the budget. However, the House Republicans, holding the majority in the House, are crying out the injustice of raising taxes. The economy is struggling right now, and they feel the increase in the gas tax would hurt the lower and middle class citizens. "When you are in a transportation crisis, you have to do everything you can to solve it," Senator Janet D. Howell (Democrat) said. The Senate Democrats feel the Reo publicans, most specifically the House Republicans are being obstructionists when it comes to finding solutions to the problem.

This estimated proposal would raise approximately $1 billion annually to be used for fixing the existing roads and bridges, while creating new ones throughout the state. The area of the state most plagued by transportation needs it Northern Virginia and the Hampton Roads area. Part of the reasoning behind this proposal was the fact that people who are not citizens of Virginia would share in the burden of the gas tax increase. In turn, this would mean that citizens and visitors alike would be helping to maintain the roads and bridges as well as other transportations goals.

While the House and Senate; Republicans and Democrats, are debating the proposals to improve the situation, the public is beginning to weigh in on whether this idea is positive or not. Some Virginians feel that this is just another way for the government to make life more difficult for the common man. Some sites feel that this increase in tax could be a good thing. It would mean that some sort of relief, perhaps in the form of a tax credit, should be given to the lower and middle class families who are already struggling with the costs of living themselves. Still others feel that this special session will leave the ideas unformed. We will be back to the old drawing board once more if these issues surrounding the transportation funding remain unresolved at the end of this special session.

Sources:
Evan Moore, "Va. Governor Proposes Tax Hikes" CNSnews.com Correspondent

Julian Walker, "State Panels OK increase in gas tax, tolls to fix roads" Virginian-Pilot

Michael J. Cassidy and Sara Okos, "The Road Less Taken: Creating Fairer Taxes, As Well As Better Highways" The Commonwealth Institution