Virginia's fuels taxes; annually changing rate by using changes in fuel efficiencies of vehicles. (SB733)

Introduced By

Sen. Chap Petersen (D-Fairfax)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Fuels taxes; indexing of tax rates. Increases or decreases each year the rates of Virginia's fuels taxes using a fuel efficiency index. The bill defines the fuel efficiency index as the quotient that is obtained when using as the numerator the total annual vehicle miles traveled in the Commonwealth for the relevant year and using as the denominator the total gallons of motor fuel consumed for highway use in the Commonwealth for the relevant year, as published by the Federal Highway Administration of the U.S. Department of Transportation.

The bill establishes 2007 as the base year for the fuel efficiency index. Thus, the percentage change in the fuel efficiency index between the current year and 2007, the base year, would determine the annual percentage increase or decrease in the rates of Virginia's fuels taxes. Each December the Commissioner of the Department of Motor Vehicles would compute the adjusted rates of fuels taxes.

Currently, Virginia's fuels taxes are fixed at the rate of 17.5 cents ($0.175) per gallon for each gallon of gasoline, gasohol, and diesel fuel. Read the Bill »


Bill Has Failed


12/12/2012Prefiled and ordered printed; offered 01/09/13 13100541D
12/12/2012Referred to Committee on Finance
01/18/2013Impact statement from DPB (SB733)
02/06/2013Left in Finance


James writes:

Seems overly complicated and a simple percent or amount per gal will due just fine. Id even support a 2.5 cent increase right off the bat to you know help out. Indexing the fuel tax to inflation and all that jazz is a bad idea just like this one. Make it 1 amount 1 at a time.