The Virginia Senate has passed a transportation funding bill that would increase the 17.5-cent tax on gasoline and diesel by 5 cents to 22.5 cents, putting the senators at odds with the House and Republican Gov. Bob McDonnell, who want to stop taxing gasoline but keep the diesel tax.
The Senate approved its plan 26-24 after earlier rejecting McDonnell’s proposal.
The House has approved McDonnell’s plan, which would replace the lost gasoline tax revenues with a 0.8-percentage point increase in the state’s 5% sales tax.
In addition to proposing higher taxes at the pump, the Senate plan would index the fuel tax to keep up with inflation.
The bill would also impose a 1% wholesale fuel tax and increase to vehicle registration fees.