Virginia Democrats offer alternative gas tax relief plan

By Tyler Arnold

(The Center Square) – The plan would give $50 to every vehicle owner, with a maximum of $100 per household. House Democrats plan to introduce their proposal as a substitute to Youngkin’s plan, which is currently being considered by the House Finance Committee. Youngkin’s plan would fully suspend the state’s gasoline tax for three months, which is 26.2 cents per gallon.

“Gov. Youngkin’s plan is riddled with holes that will do lasting harm to Virginia and the people who live here,” Democratic Caucus Chair Charniele Herring, D-Alexandria, said in a statement. “Over the past three months, he has repeatedly demonstrated that he has no understanding of the legislative process or respect for legislators and never has that been more clear than in his handling of this misguided and ill-conceived plan.”

The governor initially proposed legislation that would lower the gas tax from 26.2 cents per gallon to 21.2 cents per gallon until July 1, 2023, which would have been a suspension of the most recent gas tax increase. After failing to get support from Senate Democrats, he proposed his second plan to grant a three-month gas tax holiday from the beginning of May through the end of July. Under this plan, the tax would be gradually reintroduced throughout the following two months. This would cost the state about $437 million in revenue.

According to the governor’s office, the commonwealth could afford the tax holiday because state transportation fund expects to have $1 billion in additional unanticipated revenue over this year and next – more than $671 million in Fiscal Year 2022 and more than $457 million in Fiscal Year 2023.

House Democrats argued their plan would cost the state about one-third of what Youngkin’s plan would cost and ensure that savings go directly to Virginia drivers, rather than out-of-state travelers or large oil companies.

“The governor has refused to protect consumers despite repeated requests for the past month,” House Democratic Leader Eileen Filler-Corn, D-Fairfax, said in a statement. “House Democrats have stepped up to fill this void in leadership by offering a plan that benefits Virginia consumers directly at a fraction of the cost to the Commonwealth.”

Lawmakers began their special session on April 4 to reach a compromise on the state budget and address different tax plans. The Republican plan included broader tax cuts than the Democratic plan. Lawmakers have already entered a joint conference committee to reach a deal on the state budget, but those negotiations are ongoing.

Tyler Arnold reports on Virginia and West Virginia for The Center Square. He previously worked for the Cause of Action Institute and has been published in Business Insider, USA TODAY College, National Review Online and the Washington Free Beacon.