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McDonnell proposes using some sales tax money for transportation

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    NEWSLETTERS

    Virginia Gov. Bob McDonnell wants to use sales tax money to ease gridlock in Hampton Roads and northern Virginia. (Published Saturday, Jan 15, 2011)

    Gov. Bob McDonnell wants to take $140 million a year in state sales taxes and return it to Virginia's most congested regions for transportation projects.

    The Republican governor also announced legislation Friday that offers tax incentives for companies that ship by rail or water instead of trucks, and that allow employees to telecommute.

    That comes a month after he announced an ambitious but politically contentious plan to spend $4 billion to jump start hundreds of mothballed highway projects.

    Friday's final details on his legislative package for transportation also include a proposed constitutional amendment to prevent transportation revenue from being moved to the general
    fund.

    But legislative Democrats condemn McDonnell's plan to divert general fund money to transportation, saying it depletes such needs as public schools and public safety.