In his State of the Commonwealth address, Governor McDonnell featured his "no gas tax" plan. For many years, Virginia has included a transportation tax of 17.5 cents per gallon on gasoline at the pump (the national average is about 31 cents per gallon). There's a need for more highway and transportation money--primarily in the DC suburbs and the Hampton-Norfolk-Virginia Beach area--while cars are using less gasoline.

McDonnell would end the per-gallon tax, and instead increase the state sales tax from the present 5% to 5.8%. (The plan leaves in place the tax on Diesel fuel).

A half-cent of each nickel of sales tax now goes toward transportation. The new 0.8 percent, plus an additional 0.25 percent from the present tax, would be dedicated to transportation. McDonnell would also put in a $100 annual fee on alternative fuel vehicles (excluding hybrids) and increase registration fees by $15, dedicated to transit. He also includes using $1 billion in Internet sales tax revenue that could be derived if legislation pending in Congress goes through--but passage is uncertain.

Support is being marshalled. Jack Hornbeck, Jr. of the Hampton Roads Chamber of Commerce said: "The tenets of the proposed legislation appear to be aligned with our funding principles, which are:

• Broad-based, long-term, and efficient to collect
• Sourced from all ultimate consumers including those in-state, out-of-state, wholesalers, retailers, and users of products and services moved over the transportation grid designed to encourage smart transportation grid use and development
• Enable everyone to pay their fair share."

Opponents to the plan, led by State Senator Don McEachin, point out that reliance on the all-purpose sales tax for increased transportation spending would result in taking money away from education and public safety. Democratic gadfly and former State Party chair Paul Goldman thinks that McDonnell has positioned the issue so that, if it fails in the Legislature, Ken Cuccinelli can make "no gas tax" the "no car tax" of his gubernatorial run.

Dave Sagarin (January 10, 2013)