Virginia Legislature Kills Gas Tax Bills

The state's gasoline tax has remained unchanged since 1986.

February 18, 2011

ROCKY MOUNT, Va. - Several bills to boost the Virginia??s gasoline tax did not make it past the General Assembly, The Franklin News-Post reports.

At 17.5 cents per gallon, one of the lowest rates in the nation, Virginia??s gasoline tax has remained the same since 1986, the newspaper writes. Two bills sought to raise the tax by 10 cents a gallon, while two other bills sought to convert the rate of taxation from cents per gallon to a percentage rate that would be applied to the average price per gallon. Therefore, as the price increased, the state would receive more revenue.

Virginia Petroleum Convenience and Grocery Association President and CEO Michael O??Connor commented that the state??s motor fuels tax collections have increased from $468 million in 1987 to $904 million in 2009, even thought the gasoline tax itself has not changed. The reasons, he said were increases in the population, miles traveled and out-of-state motorists and long-haul trucks making Virginia their destination of choice for refueling.

"Virginia needs to continue this economic advantage that promotes not only gasoline sales but other incidental purchases in many other border locations as well," O'Connor said.

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