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House panel advances McDonnell transportation plan

RICHMOND — Gov. Bob McDonnell’s transportation funding bill cleared another legislative hurdle Wednesday, getting bipartisan support on the House Finance Committee.

The panel advanced McDonnell’s transportation package on a 14-8 vote after administration officials proposed minor changes to the multifaceted legislation. The bill now goes to the full House of Delegates.

Even if the House passes the bill (House Bill 2313), as expected, administration officials and House Republican leaders said details of the package likely will change in negotiations with the politically-divided Senate.The Senate Finance Committee is scheduled to take up the Senate version of McDonnell’s proposal Thursday.

“This first vote clearly demonstrates a growing, and bipartisan, consensus that transportation is a core function of government and our investments in building and maintaining our highways, transit systems and railroads is of utmost importance to the citizens of Virginia,” McDonnell said in a statement after the House committee vote.

McDonnell said the complete package, which he unveiled on the eve of the General Assembly session, could generate more than $3.1 billion in additional transportation funding over the next five years. McDonnell has said he is willing to negotiate on some elements of his proposal. The administration indicated today that it could back away from plans to put tolls on Interstate 95 in Sussex County if the bill passes.

Among other things, the plan could generate $102 million to extend passenger rail service to Roanoke and $47.1 million to replace an Interstate 81 bridge over the New River in Montgomery County, McDonnell said last week.

The governor’s proposal would eliminate the state gasoline tax and increase the retail sales tax from 5 percent to 5.8 percent, with all of the revenue from the sales tax increase dedicated to transportation. The plan also would increase vehicle registration fees, impose a $100 annual fee on hybrid and alternative fuel vehicles, and shift revenue from the state’s general fund to provide more dollars for roads, rail and transit.

McDonnell proposed scrapping the state’s 17.5 cents per-gallon excise tax on gasoline and replacing it with a higher retails sales tax, asserting that the buying power of the gas tax has been weakened by inflation and the proliferation of fuel efficient vehicles.

“It’s a bold move, but a needed move,” said House Speaker Bill Howell, R-Stafford County, the lead House sponsor of McDonnell’s bill.

The state still would levy a 17.5 cents per-gallon tax on diesel fuel to get heavy truck operators to pay for the deterioration their vehicles cause to interstate highways. But the administration agreed to a change Wednesday that would allow owners of diesel-fueled passenger vehicles to receive rebates for their fuel expenses.

About one third of the total revenue in McDonnell’s plan depends on Congress passing the Marketplace Equity Act, a bill that would give states greater ability to compel online retailers to collect state sales taxes. McDonnell projects that Virginia could collect $1.02 billion for transportation over five years if the act is passed.

Ten Republicans and four Democrats on the Finance Committee voted to advance the bill Wednesday, though some members said they hope to improve the bill as it goes through the legislative process.

– Michael Sluss

Join the conversation [ADD A COMMENT]

2 COMMENTS

  1. Other John | January 30, 2013 at 11:38 pm

    So, our hopes for long-term funding rely on Congress doing something? SO what if the state passes this abysmal plan and Congress does what it does best, and fails to do anything? Then what? We just further hamstrung transportation funding via another Republican tax gimmick.

  2. Kim | February 12, 2013 at 6:14 am

    I am seeing that diesel taxes will remain the same. What about all the thousands of diesel pickup truck owners and diesel car owners? Are we suppose to pay double taxes under this plan? The last thing I wnt to do is continue tp pay for fuel tax and also have to pay an additional sales tax. How is this fair and what is the plan going to doing regarding this?

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Wednesday, June 19, 2013

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Starting to look a lot like summer

Wed, 19 Jun 2013 01:03:10 +0000

About this blog

The Blue Ridge Caucus is written by Roanoke Times newsroom staffers including Dave Ress, Chase Purdy and Dwayne Yancey. The blog covers all things politics, especially west of Virginia’s capitol, with historical perspective on issue and positions, and money and campaign finance.

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