Bluefield Daily Telegraph, Bluefield, WV

Local News

January 8, 2013

Va. Governor proposes replacing gas tax

(Continued)

The largest single item in McDonnell's plan depends on action by Congress. According to the governor, Congress this year is expected to pass legislation giving states authority to collect out-of-state sales taxes. Taxpayers already are supposed to pay these taxes as a use tax on their income tax returns, but compliance is low. McDonnell proposes earmarking a portion of this revenue for transportation, raising just over $1.1 million over five years.

The governor also wants to raise $547 million over five years by increasing vehicle registration fees by $15. An annual $100 fee on alternative fuel vehicles would raise an additional $66.6 million.

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