Governor tells General Assembly: We need tax relief
Governor Glenn Youngkin today sent legislation to the General Assembly to suspend Virginia’s gas tax for three months. The legislation will be introduced by Delegate Tara Durant (R-Stafford) and Senator Steve Newman (R-Lynchburg).
“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,” said Governor Glenn Youngkin.
Governor Youngkin’s proposal would suspend the Motor Vehicle Fuels tax, which is 26.2 cents per gallon for gasoline and 27 cents for diesel, for three months, May, June, and July, and phase it back in slowly in August and September. The Governor’s proposal would also cap the annual adjustment to the gas tax at no more than two percent per year to further protect Virginians from the hidden tax increase of inflation.
Revenue from the tax, commonly referred to as “the gas tax” is deposited in the Commonwealth Transportation Fund along with a portion of the state’s sales and use tax. The Commonwealth Transportation Fund, which funds maintenance and construction for all modes of transportation, is currently realizing revenue well-above forecast and has $671.4 million unanticipated revenue in FY22 and $457.6 million FY23.