Va. Governor Signs Repeal of Hybrid Vehicle Tax

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    A power cable from a vehicle charging station is seen plugged into the side of a Toyota Prius plug-in hybrid August 25, 2010 in San Francisco, California. With sales of electric and plug-in hybrid cars expected to increase in the coming years, the Bay Area Air Quality Management District has set aside $5 million to increase the number of electric car charging stations to 5,000 around the Bay Area. There are currently 120 stations in the area.

    Gov. Terry McAuliffe has added his signature to legislation to repeal the state's $64 annual fee on hybrid vehicles.

    McAuliffe signed the legislation Wednesday during a one-hour appearance on WTOP radio in Washington. He said the repeal is effective July 1 and will affect the 75,000 hybrid vehicles in Virginia.

    The tax was part of a massive transportation funding bill passed last year. It was originally set at $100 but reduced to $64 by then-Gov. Bob McDonnell.

    Critics said the tax on hybrids unfairly punished drivers who are trying to use less fuel.

    In signing the repeal legislation, McAuliffe called it the "right thing to do.''

    Much of McAuliffe's WTOP interview was devoted to the Democrat's efforts to convince Republican House lawmakers to accept billions in federal Medicaid funds.