The Virginia General Assembly gave final approval on Saturday to legislation that is projected to raise more than $800 million for transportation over the next five years.
The law, a compromise between Gov. Bob McDonnell's original plan and a plan backed by state Senate Democrats, would cut the commonwealth's current 17.5 cents-per-gallon gas tax and replace it with a 3.5% wholesale tax paid by gasoline distributors and a 6% tax paid by diesel distributors. It would increase the general sales tax on Virginia purchases to 5.3% from 5% and impose several other smaller tax increases and fees.
The legislation passed the House of Delegates by a 60-40 vote and the Senate by a 25-15 margin. A spokesman for McDonnell said the governor would conduct "a thorough policy and legal review" of the bill before deciding to sign it or amend it. McDonnell has been supportive of the compromise legislation.
