In a move similar to the legislation made in Maryland, Governor Younkin is proposing a gas tax suspension to combat rising gas prices and inflation costs.
Youngkin’s proposal would suspend the Motor Vehicle Fuels tax for May, June and July before slowly phasing it back in slowly in August and September. The state tax is currently 26.2 cents per gallon for gasoline and 27 cents for diesel. The proposal would also cap the annual adjustment to the gas tax at no more than two percent per year.
“Virginians need tax relief and it’s time for the General Assembly to act on the multiple tax relief proposals,” he said in a statement. “With gas prices and inflation squeezing families’ pocket books across Virginia and the nation and with over $1 billion in unanticipated revenue in our transportation fund, the general assembly must act now.”
In March, Maryland became the first state to enact legislation that enacted a 30-day gas tax suspension, something other states would also attempt to replicate. Tennessee lawmakers have also suggested that Gov. Bill Lee take similar action, but as of now, the governor’s office has not spoken on the matter.
Do you feel this gas tax would help lower the gas prices at the pump? According to AAA, Monday’s average price of gas across the commonwealth was about $4.06. Hopefully this holiday can help Virginias make it through the summer months.
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[…] House Finance Committee Republicans advanced Governor Glenn Youngkin’s gas tax holiday bill and killed Democrats’ alternate $50-per-car tax refund proposal on Tuesday. The bill includes a 100-percent motor fuels tax reduction from May 1 through July 31, a 50 percent reduction in August, and a 25 percent reduction in September. It also includes a two-percent cap on future annual rate adjustments. (RELATED: Virginia’s Governor Proposes 3-Month Gas Tax Holiday) […]
[…] As previously reported, Youngkin and the Republican-controlled House of Delegates passed the tax holiday, which would have waived the Old Dominion’s gas tax for three months. The bill, introduced by Sen. Stephen Newman said that when Maryland introduced a similar gas tax reprieve bill on March 18, gas prices dropped 21 cents that day. (RELATED: Virginia’s Governor Proposes 3-Month Gas Tax Holiday) […]
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