New Gas Tax? Here’s Why VA, DC Could Pay More At The Pump: Report
Virginia and Washington, DC are part of a plan that could lead to higher prices at the gas pump. Here’s how and when, according to a report.
The plan calls for gasoline and diesel wholesalers to pay the states for emissions allowances. Critics fear the wholesalers will simply pass the new costs directly through to consumers, and are calling it nothing more than a gasoline tax, according to Politico.
The other states invested in the plan, called the “Transportation and Climate Initiative,” are Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Maine and New Hampshire.
According to the Institute on Taxation and Economic Policy, Virginians pay 21.95 cents per gallon of gasoline, while DC drivers pay 23.50 cents a gallon. That included all state and local taxes and fees as of Oct. 1.
Gasoline taxes have been a robust and reliable source of revenue for states, but the country’s speedy shift into greener transportation is giving them pause. Many state legislatures are growing leery regarding the long-term viability of taxing fuel receipts as the electric car market continues to flex.