Va. Gas Tax Increase Is Snubbed In House

RICHMOND, Feb. 4 -- A Virginia House committee rejected a proposal Monday to raise the state's gasoline tax by 5.5 cents a gallon, highlighting anew the political difficulties of the search for more money to help ease the state's transportation troubles.

Also Monday, the House unveiled a proposal to impose stiffer regulations on payday lenders and approved several bills to curb services to illegal immigrants, including one that would ban them from attending public colleges.

In the Senate, members overwhelmingly passed a bill establishing an independent panel to redraw legislative and congressional district boundaries after the 2010 Census.

Some Senate Democrats, led by Majority Leader Richard L. Saslaw (D-Fairfax), are supporting an increase in the gasoline tax to help pay for highway maintenance, but the House Republican majority opposes it, saying that gas prices have been on the rise in recent months. The tax, now 17.5 cents a gallon, has not been increased since 1986.

"I don't think the solution to our transportation problems is taxing hard-working families more," Del. Jeffrey M. Frederick (R-Prince William) said.

The House Finance Committee voted 16 to 2 against a gas tax increase after a brief debate. Committee Chairman Harry R. "Bob" Purkey (R-Virginia Beach) said he supported past efforts to raise the gas tax but changed his mind because of the possibility that the federal gas tax would be raised. Last month, a bipartisan national commission recommended an increase of 40 cents a gallon over five years in the federal tax rate of 18.5 cents a gallon.

"If that goes forward, we're not going to see many states raising additional gas tax," Purkey said.

But after meeting with Gov. Timothy M. Kaine (D), members of Virginia's congressional delegation said that Congress probably would not approve a substantial gas tax increase in the near future.

"It's just a report by a commission," said Rep. Thelma Drake (R-Va.).

Despite the Finance Committee's decision Monday, there is still a chance that the issue could be revived in the Democrat-controlled Senate.

Saslaw is proposing raising the state's gas tax by one penny a year for the next five years. He argues that the increase is needed because there is a $290 million deficit in the part of the budget used to repair and maintain roads.

But chances of the House agreeing to a tax increase appear slim. Five House Democrats, including Del. Brian J. Moran (D-Alexandria), chairman of the House Democratic Caucus, joined 11 Republicans on the Finance Committee in voting against the tax increase plan.