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One odd outcome (and there are many) from this bill, is that it provides a reason for those who oppose using more sales tax revenue to pay for road projects to oppose the passage of the federal Marketplace Equity Act allowing internet taxes in the current Congressional session. If the bill does not pass, then the wholesale tax on gas goes to 5.1%, roughly equivalent to the current excise tax at current prices. Would have been a lot simpler to have a 6% wholesale tax on gas and diesel if they had to move to a wholesale tax.

As for the transit funding amounts in this bill, that could be fixed by a Governor McAuliffe in a couple of years by allowing the extra sales tax in NoVA and Hampton Roads to go to transit projects if there is enough support to do that. It is easier to adjust distribution of existing revenue than it is to increase revenue with new taxes. I would not anticipate that a Gov. Cuccinelli would be inclined to do that, instead he would probably try to repeal some of the new taxes in the bill.

by AlanF on Feb 25, 2013 12:19 pm • linkreport

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