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Senate approves gas-tax increase
House of Delegates Republicans could kill the bill
 
Wednesday, Jun 25, 2008 - 12:09 AM Updated: 05:39 PM
 
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What's the outlook?

Legislators are pessimistic. The Senate might approve a bill to raise the gas tax, but House GOP leaders oppose a statewide tax increase.

What's the cost?

Each of the 40 senators and 100 delegates gets $135 per day for expenses such as meals and lodging. This costs taxpayers $18,900 each day of the special session.
Transportation deal lacks traction
Virginia Politics Blog
Complete General Assembly coverage
By OLYMPIA MEOLA, JIM NOLAN AND JEFF E. SCHAPIRO
TIMES-DISPATCH STAFF WRITERS
The Virginia Senate this afternoon approved an increase in the state's gasoline tax and other levies to fund transportation. 
 
 Sen. Richard L. Saslaw's bill  calls for a 1-cent-per gallon hike in the tax on gasoline for each of the next six years.The bill also increases the auto sales tax from 3 percent to 3.5 percent and calls for a 0.25 percent statewide hike in the retail sales tax. It would be offset by a 0.5 percent reduction in the state tax on food, from 2.5 percent to 2 percent.
 
Senators passed the Fairfax County Democrat's bill on a 21-16 vote. Three Republican senators were not present.
 
The bill now heads to the House of Delegates. House GOP leaders have stated their intention to kill any bill that raises taxes statewide.

Earlier this afternoon, the House Rules Committee took up, but did not act on, Gov. Timothy M. Kaine's proposal to raise $1 billion for transportation by increasing taxes and fees.

After heated debate about the effects the proposed tax increase would have on the economy and disagreement over how much needs to be raised to cover the maintenance deficit, the panel postponed action.

The committee has not set another meeting time, but there's a chance it could be this evening. The full House convened at 4 p.m.

It's the third day of a special transportation session of the General Assembly. Legislators and lobbyists in both parties have little hope that the legislature will come up with a remedy for a $1 billion hole in the state's road-construction and maintenance program.

This is the third time in as many years that Kaine and the legislature have attempted to find new dollars for transportation.

This morning, voting on party lines, the Democrat-controlled Senate Finance Committee endorsed Saslaw's legislation raising the gasoline tax a penny per gallon - per year - for the next six years. The increase would be applied to the wholesale price of gasoline, not what Virginians pay at the pump.

The Republican-controlled House of Delegates favors tolls, while the Democratic-dominated state Senate prefers increased taxes, reflecting the partisan divide that continues to complicate efforts to close a $1 billion hole in the road-building and maintenance program,

Contact Olympia Meola at (804) 649-6812 or omeola@timesdispatch.com.

Contact Jim Nolan at (804) 649-6061 or jnolan@timesdispatch.com.

Contact Jeff E. Schapiro at (804) 649-6814 or jschapiro@timesdispatch.com.

 
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