Transportation Overhaul Becomes Law in Virginia

Taxes & fees go up; road funding & repairs get focus

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The compromise transportation plan has become law in Virginia.

The new law provides long-term funding for road repairs and upkeep.

Flanked by lawmakers from both parties, Gov. Bob McDonnell signed the bill, celebrating the bipartisan effort of it.

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"There's a big difference between Washington and Richmond," McDonnell said. "Ninety miles can make a big difference. The bill that ultimately passed has 43 Republicans and 43 Democrats -- doesn't get any more bi-partisan than that."

The new law also brings higher taxes and fees.

It eliminates the state gas tax but adds a 3.5 percent wholesale gas tax, increases the state sales tax to 5.3 precent and imposes a $100 fee for hybrid owners.

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