The Virginia House of Delegates passed a bill Friday afternoon that would eliminate the state’s retail taxes on diesel and gasoline and replace them with a wholesale tax for fuel distributors and an increased sales tax, the Richmond Times-Dispatch reported.
The bill passed by a vote of 60 to 40, and it now awaits a vote in the Senate and Gob. Bob McDonnell’s (R) signature.
The measure is a compromise between the House — which originally wanted to completely eliminate the fuel taxes and replace them with an increased sales tax — and the Senate, which wanted to increase the fuel taxes.
Currently, Virginia motorists pay 17.5 cents for each gallon of diesel or gas.
Fuel distributors would pay a 6% tax on the diesel they sell if the bill becomes law, and 3.5% on gasoline.
The compromise bill also would increase the 5% sales tax to 5.3%, increase the vehicle sales tax to 4% from 3% and increase the amount of money diverted from the general fund to transportation.
In a statement issued Wednesday after legislative leaders announced their compromise, McDonnell applauded the deal, but did not vow to sign it before thoroughly reviewing it.
