Hybrid-Tax Repeal Passes Committee with Bipartisan Support

Measure to be voted on by the full Senate

 Richmond, VA -- Earlier today, the Senate Committee on Finance reported an amended version of SB 127, which would repeal Virginia's $64 annual tax on hybrid electric vehicles. The bill garnered bipartisan support, passing on a 10-5 vote.

 The hybrid tax, imposed as part of the compromise transportation reform bill that passed last year, has attracted opposition from both parties. Among those pushing for repeal or reform were Senator Chap Petersen (D - Fairfax), with SB 221; Senator Dave Marsden (D - Fairfax), with SB 38; Senator John Miller (D – Newport News), with SB 159; and Senator Adam Ebbin (D - Alexandria), with SB 1.

 Senator Ebbin said, "The hybrid tax is flawed and this unfair tax is illogical. More than 7,300 Virginians asked me first to oppose it, and later to repeal it. Today, we made progress towards that goal, and I am hopeful that the full Senate will follow through and remove this onerous and unnecessary tax."

 Senator Marsden said, "The hybrid electric tax punishes drivers who are trying to do the right thing, choosing vehicles that protect our environment and reduce our dependence on foreign oil. I am pleased to see that we have taken this first step towards repeal."

 Senator Miller said, "This tax is simply unfair. We’re asking people to use less gasoline, and then we hit them with a tax when they switch to a more efficient vehicle. The tax also singles out hybrids: we’re not taxing non-hybrids that get equal or greater gas mileage. I’m pleased to see that lawmakers from both parties understand these issues, and I’m glad that we’ve taken this concrete step to address them."

 Senator Petersen said, “Taxation should be simple, uniform and transparent. The hybrid penalty is none of those (and contributes less than .02% of our transportation revenue). I'm pleased that the members of the committee agree that's its time to stop this unfair penalty.”

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