Blountville
87° F
Scattered Clouds
Scattered Clouds
Greeneville
87° F
Scattered Clouds
Scattered Clouds
Abingdon
85° F
Scattered Clouds
Scattered Clouds
Advertisement

Could Va. gas tax hit the road?

Published On: Jan 08 2013 10:26:20 PM CST
BRISTOL, Va. -

Governor Bob McDonnell is proposing eliminating the tax on gas and raising sales tax to help fix Va. roads.

 

Governor McDonnell announced a plan to fight the Commonwealth’s shrinking transportation budget.

His answer includes getting rid of the state's 17.5 cent gas tax and would increase the state’s sales tax nearly a penny on the dollar.

 

The sales tax revenue would then go into the transportation budget.

 

Gary Noe who is concerned about gas prices says, “A big chunk of what you are paying for gas is tax."

 

But that could all be changing, making the Commonwealth the first state to cut the tax.

 

“17 cents doesn’t sound like that much, one gallon, say you’re running on fumes you got a 23 to 24 gallon tank, do the math," says Noe.

 

Under the plan, you'd also pay an extra $15 when you renew your vehicle registration.

 

Noe adds, "When you go to register your vehicle that's one time, you buy gas what, once, twice a week, maybe more."

 

Even though sales tax would go up, the drop at the pump would make for some happy customers.

 

Denette Riley says "That would be wonderful; gas prices are unreal right now. You can't afford it; it’s just ridiculous."

 

If passed, the governor expects it to create $1.8 billion over the next 5 years in additional funds for highway construction. The next session begins for Va. Lawmakers Tuesday.