Senators to Propose Gas Tax for Road Projects

Unraveling of Compromise Plan Feared

Gainesville VA- With the price of gasoline falling , it is becoming less of a issue for Congressional challengers in the up coming election. This Wawa station has some of the lowest prices in the area, currently 202.9 for regular gas. It did drop below 2 dollas a gallon recently. photos shot at 5 pm shows the gas pumps full of cars filling up. (John Mcdonnell - John McDonnell - The Washington Post)

RICHMOND, Jan. 29 -- A bipartisan group of senior state senators intends to offer legislation this week that would rely on a sales tax on gasoline to finance billions of dollars for road construction and maintenance, according to a draft of the plan, which will be presented as an alternative to a precarious compromise proposal for transportation funding.

Under the new proposal, to be offered in the Senate Finance Committee, motorists would pay a 5 percent sales tax in addition to Virginia's gas tax of 17.5 cents per gallon, said sources on the committee who spoke on condition of anonymity because the plan has not been presented formally. That would amount to an extra $1.25 for every $25 in gasoline and would raise about $600 million every year.

The idea has the potential to unravel the compromise transportation deal between Republicans in the Senate and House of Delegates that was negotiated earlier this month, legislators said. Lawmakers who were part of that deal said Monday that increasing taxes on gasoline is politically impossible this year.

"That would kill the deal," said Sen. Kenneth W. Stolle (R-Virginia Beach). "It's counterproductive and idiotic. It's the same as doing nothing. As sure as I'm standing here today, that bill will be dead on arrival in the House."

Del. Clarke N. Hogan (R-Charlotte) said his colleagues in the House strongly oppose higher taxes on gasoline.

"That's just a gas tax by another name," Hogan said. "It's one of the least reliable sources of revenue in the last 20 years."

The GOP plan that Stolle helped negotiate includes a provision that shifts about $250 million every year from state programs such as health care and education to transportation. Some senators, including Finance Committee Chairman John H. Chichester (R-Northumberland), say the provision would rob state programs of needed funds.

The tax on gasoline is intended to provide money to relieve congestion across the commonwealth without taking money from other state programs, said Sen. Richard L. Saslaw (D-Fairfax).

"I want [millions] coming out of the general fund every two years so we can say we did something?" Saslaw asked sarcastically.

Sources familiar with the bipartisan plan, which was presented behind closed doors to Senate Democrats on Monday, said adding the sales tax to gasoline is the centerpiece of broader efforts to pump new money into the road and transit network.

The proposal also envisions borrowing up to $2 billion for transportation and imposing new fees on auto registration, diesel fuels and very bad drivers. The bipartisan plan would also allow Northern Virginia and Hampton Roads to raise taxes and fees for costly projects in their regions. The GOP compromise plan also has those provisions.

Kevin Hall, a spokesman for Gov. Timothy M. Kaine (D), declined to comment on the proposals Monday, saying the administration would wait to see what is said at the committee Tuesday.