Gov. willing to compromise on gas tax

Associated Press

Updated: Feb 11, 2013 4:18 PM

McLEAN, Va. (AP) — Virginia Gov. Bob McDonnell says he's willing to compromise on a key detail of his $3 billion transportation package to get it through the state Senate.

At a news conference Monday in McLean, McDonnell said he would consider a plan that does not fully eliminate the state's 17 1/2 cents-per-gallon gasoline tax. If legislators want to phase the gas tax out over time, or leave a reduced gas tax in place, McDonnell said he would consider it.

McDonnell's proposal calls for abolishing the gas tax and replacing the money by increasing the sales tax from 5 to 5.8 percent. McDonnell says the tax swap would be revenue neutral at first but generate new money over time because the gas tax is declining and the sales tax is growing.

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