Virginia House Bill HB297

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Regional fuels tax; suspends the imposition of any tax.

Impact

The legislation is expected to have significant fiscal implications, both for state revenue and for consumers. By suspending the regional fuels tax, the state may see a decrease in tax revenue from fuel sales, impacting budgets for transportation and infrastructure projects funded by these taxes. However, proponents of the bill argue that the benefits to consumers, especially in terms of reduced fuel costs, will ultimately support economic activity by allowing citizens to allocate their budgets towards other essential needs during the suspension.

Summary

House Bill 297 (HB297) proposes a temporary suspension of the regional fuels tax in Virginia. Specifically, it stipulates that no tax shall be imposed under Chapter 22.1 (§ 58.1-2291 et seq.) of Title 58.1 of the Code of Virginia for the period from July 1, 2022, to July 1, 2023. This bill aims to relieve financial pressure on consumers and businesses during the specified period by eliminating a tax that would normally apply to fuel sales, thus reducing the overall cost of fuel for residents in the region.

Contention

Notable points of contention regarding HB297 include debates over the long-term sustainability of suspending the tax without finding alternative funding sources for affected projects. Critics of the bill express concerns that the loss of tax revenue could hinder the state’s ability to maintain and improve vital infrastructure, which is heavily reliant on fuel tax collections. They warn against making this suspension permanent, emphasizing the need for a balanced approach that considers both immediate economic relief and long-term financial health for state projects.