RICHMOND, Va. - Virginia Governor Glenn Youngkin announced Wednesday he is sending a bill to the General Assembly to suspend Virginia's gas tax for 3 months.
The Governor is proposing to use over $437 million in unanticipated transportation revenues to support the gas tax holiday. This comes after new data released this week by the Bureau of Labor Statistics shows a 38.8% surge in gasoline costs.
In addition to the funding, the Governor's proposal plans to suspend the Motor Vehicle Fuels tax for the summer months. It also aims to cap the annual gas tax adjustment to no more than two percent per year. The move is intended to further protect Virginians from hidden tax increases caused by inflation.
"Inflation, especially in energy and gasoline, is increasing because of failed policies by the current Presidential administration that constrain domestic supply. In addition, the conflict in Ukraine is further exacerbating the problem. These rising gas prices are hurting Virginians, and we need to do something about it," Governor Youngkin said about the proposal.
The proposal was made possible thanks to above forecasted revenue brought in by Commonwealth Transportation Fund in 2022. Funding for the Commonwealth Transportation Fund is collected using money from the gas tax, along with a portion of the state's sales and use tax.