In a 25-15 vote, the Virginia Senate has approved a landmark transportation bill that eliminates the state gas tax, but raises the state sales tax.The bill now heads to the governor’s office where Governor Bob McDonnell is expected to give final approval.
The bill, which sets a framework for how the state will fund future transportation projects, does not add tolls to Interstate 95 and eliminates the state gas tax.
The legislation also creates a new 3.5 percent wholesale gas tax, increases the state sales tax from 5 percent to 5.3 percent and imposes a $100 alternative fuel fee for hybrid vehicle owners.
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