Gov. Glenn Youngkin said today that he would send a bill to the General Assembly to suspend Virginia’s gas tax for three months, at a cost of $437 million to the state’s bottom line.
“Inflation, especially in energy and gasoline, is increasing because of failed policies by the current presidential administration that constrain domestic supply. In addition, the conflict in Ukraine is further exacerbating the problem. These rising gas prices are hurting Virginians, and we need to do something about it,” Youngkin said.
Yes, he did, play politics with gas prices, that is, with the world facing war.
We could just as easily have, years ago, during the Trump administration, continued to build on clean energy initiatives that would be five years closer to fruition than they are now, reducing our dependence on old energy.
The old energy folks have their way with Republican administrations, as we know.
Now I’m the one playing politics with gas prices.
“The Commonwealth Transportation Fund has over $1 billion more revenue than anticipated this year and next, from the taxes paid by the people of Virginia. This bill gives money back to them in the form of a gas tax holiday,” Youngkin said.
The governor’s proposal would suspend the Motor Vehicle Fuels tax, which is 26.2 cents per gallon for gasoline and 27 cents for diesel, for three months, May, June, and July, and phase it back in slowly in August and September. The proposal would also cap the annual adjustment to the gas tax at no more than 2 percent per year to further protect Virginians from the hidden tax increase of inflation.
Revenue from the tax, commonly referred to as “the gas tax” is deposited in the Commonwealth Transportation Fund along with a portion of the state’s sales and use tax.
The Commonwealth Transportation Fund, which funds maintenance and construction for all modes of transportation, is currently realizing revenue well-above forecast and has $671.4 million unanticipated revenue in FY22 and $457.6 million FY23.
Story by Chris Graham
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