Gas tax revenues are currently only slightly above 2004 levels.

Add to this the fact that gas taxes were last raised to the current 17.5-cents per gallon level on January 1, 1987, and that vehicles today are far more fuel efficient (i.e. travel more miles per gallon) and its easy to see why Virginia’s Transportation Program looks like a M.A.S.H. unit.

SB 343 seeks to arrest the sharp decline in gas tax revenues by holding the tax per mile travelled steady as fuel efficiency increases.

In short, it adjusts the gas tax annually based on the Corporate Average Fuel Economy (CAFÉ) standards and Total Fleet Average as determined by the National Highway Safety Traffic Administration. Under this bill, the Virginia Transportation Commissioner computes the average adjusted tax rate for gasoline, gasohol and diesel fuel each year by determining the percentage by which the current calendar year average fuel economy exceeds that of the previous year. The rate can never be less than the previous calendar year.

SB 343 does not increase taxes on the basis of miles driven, it merely holds them constant, and in doing so attempts to hold the revenue stream constant.

SB 343 does not raise the billions needed. However, by holding fuel revenues constant, it helps stem further loss of transportation revenues, which in these troubling political times, is important.

SB 343 is currently before the House Appropriations Subcommittee #2 that next meets tomorrow (February 24th) afternoon.

To send an email message in support of SB 343 to Subcommittee members, please click here.