RICHMOND, Va. (AP) - Gov. Bob McDonnell's transportation funding package has cleared its first major legislative hurdle.
The House Finance Committee voted 13-8 Wednesday to endorse the Republican governor's five-year, $3.1 billion plan. The Senate Finance Committee will consider the legislation Thursday afternoon.
McDonnell's proposal would eliminate the gas tax and raise the state sales tax from 5 percent to 5.8 percent. It also would raise registration fees, impose a new $100 fee on alternative fuel vehicles and increase the portion of the sales tax already earmarked for highways. If Congress passes legislation giving states authority to collect sales taxes on out-of-state online and catalog sales, that money also would go to transportation.
In a written statement, McDonnell called the committee vote a first positive step toward a long-overdue transportation funding solution.
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