Monday, Sep. 15, 2014 by Trevor Baratko
Gas prices in Virginia will rise come January — possibly as much as six cents per gallon — unless Congress approves the “Marketplace Fairness Act” internet sales tax bill that’s been sitting in a House committee for months.
The looming gas tax hike stems from the state’s historic 2013 transportation funding bill signed into law by former Gov. Bob McDonnell. A relatively small portion of the transportation revenues from that law — the whole package was estimated to bring in nearly $1 billion per year for transportation — relied on Congress passing “Marketplace Fairness.”
If the internet tax legislation isn’t approved by January 2015, state lawmakers put in place a trigger that will raise the new wholesale gas tax rate from 3.5 percent to 5.1 percent to help offset revenues not collected through internet sales tax.
With the current Congress’s “do-nothing” reputation, local delegates aren’t optimistic the spike at the pump will be avoided.
Virginia Del. David Ramadan (R-87th) opposed the 2013 transportation bill. Last week he told the Times-Mirror the gas price increase was just one of his many concerns, saying he and many his many of his colleague knew it was a very real possibility. …Read More