Virginia Eliminates Conventional Motor Fuel Tax

Virginia will become the first state to eliminate the conventional cents-per-gallon tax at the pump and switch to a percentage tax based on the wholesale price of gasoline and diesel.  Effective July 1, 2013, the gasoline tax will be 3.5% of the wholesale price.  The diesel tax will be 6% of the wholesale price.  According to the Virginia Petroleum, Convenience and Grocery Association (VPCGA) the price used to figure the tax will be the wholesale price for the preceding six months.