The State Senate voted 25-15 on Saturday to approve an $880 million roads plan that will pump more money into transportation maintenance and construction through an increase in the state sales tax.
“This is a historic day in Virginia. We have worked together across party lines to find common ground and pass the first sustainable long-term transportation funding plan in 27 years. There is a ‘Virginia Way’ of cooperation and problem solving, and we saw it work again today in Richmond,” Gov. Bob McDonnell said in a statement.
McDonnell had staked the final year of his gubernatorial term and indeed his legacy on being able to achieve a transportation fix that had eluded his predecessors. The final plan, approved by the House of Delegates in a 60-40 vote on Friday, looked somewhat similar to what McDonnell had proposed in December, though significantly the package approved by the General Assembly did not eliminate the gas tax as McDonnell had suggested.
In the end, the state sales tax will increase from 5 percent to 5.3 percent, and the 17.5-cent-per-gallon gas tax will be replaced by a 3.5 percent wholesale fuel tax. The tax on motor vehicle sales will also increase, from 3 percent to 4.3 percent, and the amount of money diverted from the general fund will go up as well.
“Needless to say, this was not a perfect bill,” Lt. Gov. Bill Bolling said in a statement. “Each of us would have addressed this issue in different ways if left to our own devices. This legislation represented a compromise of many competing viewpoints. No one was happy with every aspect of this legislation, but I commend those members who supported the bill for not letting the pursuit of the perfect prevent us from accomplishing the good. What we did today was good for Virginia. It is a historic accomplishment.”
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