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Virginia last modified its gasoline tax in 1986, when it raised the tax to $0.175/gallon. That made it an 18% gas tax in 1986 prices. Now with gasoline prices approaching $3.70/gallon, that $0.175/gallon tax is less than a 5% tax.
This means we have essentially over the past 26 years been steadily making tax cuts in Virginia to the fuel tax. Furthermore, wholesale gas prices would have to reach $5.20/gallon in order for consumers to pay more with the 3.5% index than the $0.175 flat rate.
I understand this has nothing to do with the sales tax hike, but perhaps we should at least consider conceding the point that Virginians essentially have been since 1986 steadily cutting the gas tax by over 13 percentage points.
