Transportation overhaul starts Monday
- July 1, 2013
Virginia’s landmark funding transportation bill takes place today, and motorists should see a dip in gasoline prices at the pump soon.
Starting today, the state eliminates the 17.5 cents-per-gallon gasoline tax, while the wholesale sales tax of gasoline rises. AAA predicts that under the legislation, the price per gallon of gasoline will drop 6 cents per gallon in some parts of Virginia.
But while prices at the pump will fall, the sales tax across the state is set to increase from 5 percent to 5.3 percent. It also will cost an extra 1 percent to buy a car, and drivers of alternative fuel and hybrid cars will owe a $64 per year registration fee.
The transportation funding plan is expected to add more than $4 billion to Virginia’s transportation plan over the next six years, providing the state’s transportation network with its first boost in sustainable transportation funding since 1986.
Northern Virginia and Hampton Roads residents will see their sales tax increase to 6 percent, to provide additional revenues for those congested regions. Northern Virginia also faces new taxes on hotel stays and home sales, while Hampton Roads will have additional wholesale gasoline taxes in the region.
For more information: http://www.virginiabusiness.com/index.php/news/article/the-road-ahead1/