Va. Senate Passes Transportation Bill — The Virginia state Senate yesterday passed a Democrat-backed transportation bill that would raise gas taxes and index them to inflation, impose a gas wholesale tax, and would allow Northern Virginia localities to impose a sales tax surcharge to pay for transportation projects. Unlike a version of Gov. Bob McDonnell’s transportation plan that passed the House of Delegates, it does not increase the overall statewide sales tax rate. [Washington Post]
House Rejects Income Tax Proposal — A bill that would have allowed Arlington and other Virginia localities to impose a one percent income tax in order to pay for transportation improvements has failed in the House of Delegates. The House Committee on Finance voted to reject the bill. [Sun Gazette]