A three-month gas tax holiday is closer to reality in Virginia.
On Tuesday, the House of Delegates’ Finance Committee OK’d a bill that would suspend the tax of 26 cents a gallon from May 1 to July 31, bring it back at half its regular level for August, and at three-quarters its regular level in September.
The measure passed the Republican-led committee on a 12-10 party-line vote.
It now requires approval by the House Appropriations Committee, as well as the full House and Senate. But passage by the Democratic-controlled Senate is far from certain: The party has pushed its own plan to give Virginians a break, by way of direct rebates to residents amounting to $50 per car – with a limit of $100 per household.
They argue that a gas tax holiday would benefit out-of-state drivers and the oil industry more than Virginians, and would be too costly.
But that proposal was voted down by the House committee.
Gov. Glenn Youngkin estimates the plan would reduce taxes to the state by about $400 million.
In a statement, Youngkin said: “We know there’s plenty of money available to bring some relief to Virginians now as we head into these busy summer months. As we saw in Maryland, this proposal would bring quick relief to Virginians struggling with high gas prices.
I applaud today’s constructive hearing and look forward to working in a bipartisan manner with the General Assembly to help pass this important legislation. Virginians are counting on us to put politics aside and deliver for them.”
Maryland’s 30-day gas tax holiday ended earlier this week.