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House subcommittee kills bill indexing gas tax
Subcommittee kills bill that would index state gas tax

Date published: 2/25/2010

BY CHELYEN DAVIS

RICHMOND

--A House subcommittee has killed a bill to index the gas tax, but delegates said they believe it's a good idea and they hope for a special transportation session this year to work on it.

Sen. Emmett Hanger's bill would have linked the gas tax, which is 17.5 cents per gallon, to federal CAFÉ (Corporate Average Fuel Economy) standards for fuel efficiency in cars.

Hanger's proposal would take the percentage increase in the CAFÉ rate each year and multiply that by the 17.5 cents-per-gallon gas tax in Virginia. So each year, assuming that fuel efficiency standards continue to go up, the effective tax paid on each gallon of gas would go up.

One analysis of the bill says the motor fuels tax would essentially increase by 4 cents per gallon by 2020 under Hanger's bill.

The reason for it, Hanger said, is that as cars get more fuel-efficient, the state receives less money in its transportation fund because Virginia's gas tax is a flat per-gallon fee. Hanger calls it "preserving our base."

"What's telling to me is if you look out a few years based on the trend in fuel efficiency, if you go out four or five years we will have lost an additional $200 million a year in our trust fund," he told a subcommittee of the House Finance committee.

The subcommittee decided to carry over Hanger's bill, which essentially kills it for this session. But delegates, including Republicans who have opposed raising taxes for transportation, said they like the concept and hope to revive it later in the year. "I think there is some concern on the timing, but I think you may well be onto something here. There is a concern with a diminishing return on the gas tax," said Del. Tim Hugo, R-Fairfax. "We have to have some sort of revenue to build the roads."

Hugo said there may be a special transportation session--Gov. Bob McDonnell had said early in the session that he might consider a special session, rather than deal with one of his marquee campaign issues, transportation, during the regular session. Hugo said if there is such a session, he hopes Hanger brings back his bill.

Del. Lee Ware, R-Powhatan, agreed. "We're moving in a new time. We're watching roads disintegrate. This is potentially a very fruitful way to go."


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Date published: 2/25/2010



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speak for yourself (posted by mikester , Feb. 25, 2010 3:16 pm)    0 likes
Your forty cents should go towards road upkeep. If you want to be nice go buy a homeless person something

Leave it to the Republicans (posted by patrick4hp , Feb. 25, 2010 9:09 am)    0 likes
This state is so Gerrymandered that democrats can probably not hope to take over. Thus this state never has a chance of actual governing. The legislature believes government doesn't work and refuses to raise taxes to support schools, transportation, and the disadvantaged. The won't even raise the gas tax, even if it's indexed. A gas tax raise will cost me 40 cents every time I fill up. I am willing to pay that if a homeless person gets some food, or a place to sleep, or get a child educated.

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