Va. Senate Votes to Increase Taxes on Fuel, After Rejecting Gov.’s Plan

The Virginia Senate on Wednesday passed a transportation funding bill that would raise the state’s 17.5-cent tax on gasoline and diesel fuel by a nickel, to 22.5 cents a gallon, after last week rejecting Gov. Bob McDonnell’s proposal to do away with the gasoline tax entirely.

McDonnell said he welcomed the Senate vote because it allowed the bill to move to conference, where lawmakers can debate their differences.

The House last week approved the Republican governor’s plan, which would swap the gasoline tax for a 0.8-percentage point increase in the state’s 5% sales tax. The proposal did not include removing the tax on diesel.

Besides increasing the fuel tax at the pump, the Senate bill would index it to inflation, levy a 1% wholesale tax on fuel and raise vehicle registration fees.

The bill passed 26-14 with six Republicans joining Democrats in voting for it.