Gov. Youngkin forwards legislation to suspend gas tax
RICHMOND, Va (WDBJ) – Governor Glenn Youngkin has sent legislation to the General Assembly to suspend Virginia’s gas tax for three months.
“Virginians need tax relief and it’s time for the General Assembly to act on the multiple tax relief proposals. With gas prices and inflation squeezing families’ pocket books across Virginia and the nation and with over $1 billion in unanticipated revenue in our transportation fund, the general assembly must act now. Virginia should join numerous other states, led by both Republicans and Democrats, in temporarily suspending the gas tax. Actions speak louder than words, we can lower gas prices now for all Virginians,” added the governor.
The Motor Vehicle Fuels tax (26.2 cents per gallon of gasoline and 27 cents for diesel) would be suspended in May, June and July before being phased back slowly in August and September. The annual adjustment to the gas tax would also be capped at no more than two percent per year to further defend Virginians from the hidden tax increase of inflation.
The gas tax revenue gets deposited in the Commonwealth Transportation Fund along with some of the state’s sales and use tax. The Commonwealth Transportation Fund funds maintenance and construction for all varieties of transportation and is currently realizing revenue well- above forecast, according to the Office of the Governor.
Delegate Tara Durant (R-Stafford) and Senator Steve Newman (R-Lynchburg) will introduce the legislation.
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