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Wednesday, June 25, 2008

Senate OKs gas tax increase; bill heads to House

Proposed 6-cent gasoline tax increase faces likely defeat in House.

RICHMOND – The Virginia Senate passed legislation this afternoon that would increase the gasoline tax and other levies to generate new money for Virginia's transportation needs.

By a vote of 21-16, the Senate passed a bill that would pump more than $700 million annually into the state's transportation network by 2014 and additional amounts generated through regional tax increases in Northern Virginia and Hampton Roads.

Senate Bill 6009, sponsored by Senate Majority Leader Richard Saslaw, D-Fairfax County, would increase the state's 17.5 cents per-gallon gas tax by a penny a year over the next six years. The bill also would increase the retail sales tax by 0.25 percentage points and the vehicle sales tax by 0.5 percentage points, and reduce the sales tax on groceries by 0.5 percent.

The bill faces almost certain defeat in the Republican-run House of Delegates. The House's GOP majority is opposed to statewide tax increases, particularly on gasoline. The House has yet to act on Gov. Tim Kaine's transportation proposal, which would increase the vehicle sales tax, vehicle registration fees and the grantor's tax on home sales.

The House Rules Committee held a hearing on Kaine's proposal this afternoon. The panel took no vote on the legislation, but Republican committee members roundly criticized the bill.

 

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