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VA May Dump Gas Tax for Sales Tax

Gov. Robert F. McDonnell proposed Tuesday an ambitious overhaul of how Virginia pays for roads, rail and transit, including eliminating the gas tax and replacing it with an increase in the sales tax.

The overall plan, which would raise an estimated $3.1 billion over five years, also would increase vehicle-registration fees and add an annual $100 charge for drivers of alternative-fuel cars. McDonnell’s proposal calls for a increase in the state’s sales tax from 5 percent to 5.8 percent and projects using $1 billion in Internet sales tax revenue from legislation pending in Congress.

Source: Washington Post. Read full article. (link)

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