Virginia Gas Tax Deal and Funding Changes Expected to be Approved
Virginia lawmakers are expected to approve a 10 cent gas tax hike which will be implemented by increasing the gas tax by 5 cents this year and next year and then be tied to inflation. Additionally, the Fredericksburg area could see a regional gas tax, like the one in place along the I-81corridor, which provides funds for local projects.
Why is news of a gas tax hike of interest to FAMPO? With more fuel-efficient vehicles, which require less gas, revenue from the gas tax has decreased. Transportation projects are funded, in part, by gas tax revenue. Less revenue means less funding for transportation projects.
A deal has also been reached to restore Northern Virginia money cut a few years ago as part of a Metro funding deal. The deal would restore $50 million a year to the Northern Virginia Transportation Authority. According to the Virginia Transit Association, “The money would come from increases in the grantor’s tax on deeds and the lodging tax in Northern Virginia, and a $20 million annual contribution from the state transportation fund.”
An update to this topic will be posted sometime next week after the General Assembly passes the bills. Read a WTOP article on the topic here.