The new transportation plan is expected to provide $880 million in additional funds into transportation each year by 2018. The bill also replaces the 17.5 cent-per-gallon gas tax with a 3.5% wholesale tax on gas and 6% wholesale tax on diesel. Registration fees for electric and alternative fuel vehicles will increase from $50 to $100.
The legislation also raises the state sales tax on nonfood purchases from 5% to 5.3%, with the three-tenths of a percentage point dedicated to transportation funding. Additionally, $200 million from the general fund revenue would be dedicated to transportation each year.
Passenger rail, like Amtrak's Northeast Regional, also benefits from the plan as it creates a dedicated funding source.
Click here to read Governor Bob McDonnell's statement regarding the passage of this legislation: http://www.governor.virginia.gov/news/viewRelease.cfm?id=1693
