By Stephen Nielsen, Capital News Service
A divided Virginia Senate on Saturday passed Gov. Bob McDonnell’s signature issue of the 2013 legislative session – a bill to overhaul the state’s system for funding transportation.
McLean-area Sens. Janet Howell and Barbara Favola supported the legislation, but some other Northern Virginia senators voted against it, including Sen. Chap Petersen.
Just hours before the session’s end, the Senate voted 25-15 for House Bill 2313, which will raise about $880 million a year more for roads and mass transit by increasing sales taxes while lowering the fuels tax.
“This is truly the best we’re going to get,” Howell said.
HB 2313, which was negotiated by a conference committee and approved 60-40 by the House on Friday, would:
- Eliminate the 17.5-cents-per-gallon gasoline tax that consumers pay at the pump. Instead, the state would impose a 3.5 percent tax on gasoline at the wholesale level. The wholesale tax on diesel fuel would be 6 percent.
- Increase Virginia’s sales tax from 5 percent to 5.3 percent.
- Raise the motor vehicle sales tax from 3 percent to 4.3 percent.
- Charge a $100 annual license tax for electric and alternative fuel vehicles.
- Allow a 0.7 percent sales tax increase in Hampton Roads and Northern Virginia to fund transportation projects there.
HB 2313 also would boost the proportion of the state’s general fund revenue dedicated to transportation from 0.5 percent to 0.675 percent. And it would prohibit tolls on Interstate 95 south of Fredericksburg without approval from the General Assembly.
Do you agree with Sens. Favola and Howell? Would you have voted for this package or against it? Tell us in the comments below!
“I don’t agree with having different tax rates in different parts of the commonwealth,” Petersen said.
“Having a regional tax in Northern Virginia – that means my constituents are going to have a surcharge on all their consumer goods, just for living in that one part of the state. I don’t see the fairness in that, so I voted no," Petersen said.
Others Northern Virginia senators voted against the bill for different reasons.
“To me, the final bill represents bad economics and bad transportation policy,” said Sen. Adam Ebbin (D-Alexandria), who believes the state should raise its gasoline tax to address the problems.
A dozen Republican senators and three Democrats voted against the bill.
HB 2313 now goes to McDonnell for his signature.
In a press release, the governor said "the annals of history will recognize this session as the year that vital transportation funding reforms, substantively ignored since 1986, were enacted to address the decades-old issues that have left Virginia unable to maintain our existing road, rail and transit infrastructure and unable to pay for needed new transportation services.”
How They Voted
Here is how the Senate voted Saturday on HB 2313 (“Revenues and appropriations of State; changes to revenues collected and distribution, report”).
Floor: 02/23/13 Senate: Conference report agreed to by Senate (25-Y 15-N)
YEAS – Alexander, Barker, Blevins, Carrico, Colgan, Deeds, Edwards, Favola, Herring, Howell, Locke, Lucas, Marsden, McEachin, McWaters, Miller, Norment, Northam, Puckett, Puller, Ruff, Saslaw, Stosch, Wagner, Watkins – 25.
NAYS – Black, Ebbin, Garrett, Hanger, Marsh, Martin, McDougle, Newman, Obenshain, Petersen, Reeves, Smith, Stanley, Stuart, Vogel – 15.
Conference Panel Will Seek Transportation Compromise
McDonnell Calls on Senate to Pass Roads Funding
Governor’s Transportation Plan Hits Roadblock
McDonnell's Transportation Bill Moves Forward
Speak Out: Will McDonnell's Tax Plan Help Virginia?