Countywide Dialogue on Transportation: Gas Tax
Implementing a Gas Tax would require General Assembly authorization. The tax can be a percent of sales price or per gallon increase. For every 1% increase in the sales price per gallon, $12 million could be generated annually. For every 1 cent increase per gallon, $4 million could be generated annually.
- Tax on sales price charged by fuel distributers to retail dealers in Fairfax County.
- State Rate: 17.5 ¢ per gallon
- Federal Rate: 24.4 ¢ per gallon
- Northern Virginia Transportation District (NVTD): 2.1% tax on sales price charged by fuel distributors to retail dealers in Northern Virginia, exclusively for Metro. This generates about $25 million annually.
- 1% of sales price or 1¢ per gallon
Potential Annual Revenue at Example Rate:
- $12 million for every 1% of price per gallon
- $4 million for every 1¢ per gallon
- An increase to the current rate requires General Assembly authorization.
- May be difficult to bond, because of volatility.
- Businesses, Fairfax County residents, and non-residents who buy gas in Fairfax County.
Who Doesn't Pay?
- Those who do not buy gas in Fairfax County.
Effect on Household:
- See tables below
- Assumes price of gas pre Federal, State, and Northern Virginia Transportation District taxes at around $3, and 48 fill-ups annually