Diesel powered cars could see relief in roads plan

As proposed, Gov. Bob McDonnell’s transportation funding plan would get rid of the state’s gasoline tax but retain the 17.5 cents tax on diesel fuel.

But drivers of diesel powered cars could see some relief.

The governor said on WNIS radio this morning that diesel fuel is used most by trucks, which he says do 70 to 80 percent of the damage to roads. A small percentage of the diesel fueled vehicles in the state are passenger cars, he said.

“We’re working on a resolution there so people don’t feel like they’re getting a double tax,” he said.

McDonnell’s proposed transportation funding overhaul would get rid of the gas tax, and add .8 percent to the state’s sales tax. It would increase the vehicle registration fee by $15 and add a $100 fee for alternative fuel vehicles.

McDonnell says the plan, which also relies on capturing more online sales taxes pending action by Congress, would raise $3.2 billion over five years.