Panel rejects attempts to revise, reverse transportation deal

General Assembly

“Several legislative attempts to undo last year's landmark transportation deal, and the tax shifts that were part of it, died at a subcommittee meeting Friday. Committee members tabled a full repeal, likely relegating it to the legislative session's dustbin. They also tabled House Bill 40, which would have headed off a potential increase in Virginia's gasoline tax.

The bill sought to undo one section of last year's transportation funding overhaul that tied a future increase in the gas tax to Internet sales taxes. Many states are hoping Congress will give them more power to collect sales taxes on Internet sales. The way last year's transportation deal was written, the current 3.5 percent gas tax – charged at the wholesale level – will increase to 5.1 percent if Congress doesn't act by Jan. 1 of next year.”

~Writes Travis Fain of the Daily Press

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