Virginia legislators have reached agreement on implementing a 10-cent increase to the state’s gas tax over the next two years. The deal, which must be approved by both chambers, includes a separate measure restoring more than $150 million in Northern Virginia project funding that had been reallocated in 2018 to help cover budget shortfalls in the Washington, D.C., area’s Metro system.
The state last changed its gas tax formula in 2013, eliminating a per-gallon tax at the pump in favor of charging 3.5 percent of the statewide average wholesale price per gallon in January and July of each year. Coupled with the growth of fuel-efficient vehicle, Virginia’s gas tax revenue has steadily declined in recent years, limiting the state’s ability to keep pace with road and bridge maintenance needs.