Virginia to Consider Gas Tax Suspension

RICHMOND, Va. — Virginia Gov. Glenn Youngkin is sending a bill to the general assembly during its upcoming special session to suspend that state’s gas tax for three months.

According to AAA, the average price for a gallon of regular gasoline in Virginia currently stands at $4.19, while a gallon of premium will cost $4.90 and diesel, $5.10.

Meanwhile, the Bureau of Labor Statistics this week found gas prices in Virginia had surged 38.8% year over year.

Youngkin said in a press release that he would use over $437 million in unanticipated transportation revenues to support the gas tax holiday. 

“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,” the governor said. 

“The Commonwealth Transportation Fund has over $1 billion more revenue than anticipated this year and next, from the taxes paid by the people of Virginia. This bill gives money back to them in the form of a gas tax holiday,” he added.

The proposal headed for the general assembly would suspend the Motor Vehicle Fuels Tax, which is 26.2 cents per gallon for gasoline and 27 cents for diesel, for three months — May, June and July — and phase it back in slowly in August and September. The governor’s proposal would also cap the annual adjustment to the gas tax at no more than 2% per year to further protect Virginians from the hidden tax increase of inflation. 

Revenue from the tax, commonly referred to as “the gas tax,” is deposited in the Commonwealth Transportation Fund along with a portion of the state’s sales and use tax, the release said.

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