Proposal to Change Regional Gas Tax Among Slew of Virginia Assembly Transportation Bills

Virginia state Sen. Frank Wagner is considering two bills in this year’s General Assembly that would change the regional gas tax to help fund upcoming big-ticket transportation infrastructure in Hampton Roads.

He’s hoping changes to the gas tax could help the region avoid tolls on a new High-Rise Bridge or an expanded Hampton Roads Bridge-Tunnel.

“Every dollar we raise today [in gas taxes] saves us two dollars in the future [with tolled facilities and accumulating interest over time],” Wagner said.

He said he worries that tolls would create more barriers between cities while business leaders want Hampton Roads to work together as a region.

One bill would capitalize on low gas prices and help stockpile transportation money. That bill would add on a “flexible” gas tax that would fluctuate based on the price of gas. If prices rise, the tax decreases so it doesn’t hurt consumers as much, Wagner said. The exact tax would be hashed out later, but it could be an additional 5 to 15 cents per gallon.

A 2.1% regional gas tax already is tacked on to prices in Hampton Roads.

“If we start our efforts now, we may not have to toll at all in the future,” Wagner said.

The other bill would fix legislative oversight from 2013, when lawmakers didn’t set a “floor” for the regional gas tax.

The 2013 legislation replaced a 17.5-cents-per-gallon gasoline tax with wholesale taxes on gasoline and diesel. But the wholesale tax hasn’t lived up to projections because wholesale prices have been cheaper than expected. That has left the regional gas tax revenue billions shorter than expected. Transportation planners have had to cut 14 projects in the region because of missed projections.

Wagner said he hopes the bills generate public discussion about transportation funding during the session and in the coming year. He said he doesn’t think the public wants tolls, but do they not want them bad enough to have a larger gas tax in the region?

“No one has an appetite for tax increases, but given that these major road projects have to go forward — and I haven’t found anyone that says we don’t need them — you need to choose between Brussels sprouts and liver,” Wagner said of tolls and gas taxes. “You gotta eat one of them, and I think I’d pick the liver and the gas tax.”

Wagner said he would introduce the bills in coming weeks.

Those bills are among more than a dozen related to transportation submitted so far for the General Assembly, which begins Jan. 13. Among the bills: penalties for creating wakes in flooded neighborhood streets, increasing texting-while-driving fines and putting the Confederate flag back on a license plate.

HB224: Requires prior approval by the Assembly before tolls may be imposed or collected on interstates. Introduced by Bob Marshall, Prince William County.

HJ173: Would ask the Commonwealth Transportation Board to study what it would take to reduce or eliminate tolls on the Midtown and Downtown tunnels. Introduced by Dels. Steve Heretick and Matthew James of Portsmouth.

HB78: Increases fines for driving in the left lane on a highway to $300 from $250. Left lanes are supposed to be used for passing only, according to state law. Introduced by Del. Israel O’Quinn, Washington County.

HB126: Establishes a minimum speed limit of 45 mph on interstates and highways. Introduced by Del. Danny Marshall, Danville.

SB117: Requires drivers and passengers to wait for a reasonable opportunity to open vehicle doors near moving traffic. A violation would come with a $100 fine. Introduced by Sen. Chap Petersen, Fairfax.

HB37: Prohibits tow-truck drivers from knowingly towing a vehicle occupied by a companion animal. Introduced by Del. Kaye Kory, Fairfax County.