Virginia House and Senate Pass $880 Million Highway Bill

Interstate

An $880 million transportation bill has made it though the Virginia House and Senate and is now on its way to Governor Bob McDonnell’s desk for final approval.

The bill, which would be fully implemented in 5 years, would replace the 17.5 cent fuel tax with a 3.5% wholesale tax on gasoline and a 6% levy on diesel.

In addition, retail tax would go from 5% to 5.3%.  Vehicle sales tax would go from 3% to 4%, and a fee of $100 would be charged on alternative fuel vehicles and hybrids.

The transportation bill would also make it harder for legislators to toll Interstate 95 in the future.

“No tolls shall be imposed or collected on Interstate 95 south of Fredericksburg pursuant to the Interstate System Reconstruction and Rehabilitation Pilot Program without the prior approval of the General Assembly,” the bill states. 

Drivers, what do you think of this bill?  Do you prefer higher taxes over tolls?