House and Senate overhaul Governor's transportation proposal

House and Senate overhaul Governor's transportation proposal

Credit: Prince William Co. Chamber of Commerce

Virginia capitol building

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by Associated Press

WVEC.com

Posted on February 4, 2013 at 10:57 PM

Updated Monday, Feb 4 at 11:30 PM

RICHMOND --Gov. Bob McDonnell's legacy transportation funding initiative has undergone substantial 11th-hour overhauls in both the Virginia House and Senate just one day ahead of a key legislative deadline.  
 
An amendment by Senate conservatives substitutes a 5.5 percent sales tax at the wholesale level to gasoline and diesel and scraps McDonnell's proposed overall retail sales tax increase from 5 percent to 5.8 percent.
 
A more measured House bill eliminates McDonnell's proposed $100 fee on new hybrid car purchases, allows for regional transportation projects and requires legislative approval of interstate highway tolling.
 
Both generate less money than McDonnell's projected $3.1 billion five-year total. The Senate amendment would raise about $2 million to $2.5 billion. The House amendment would yield about $50 million less.
 
Each chamber must finish work on its bills Tuesday.

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