News and Views

VBT Blog : How the Grocery Tax Impacts Transportation Funding — to the Tune of $805 Million

The General Assembly is debating a repeal of Virginia’s grocery tax. But do you know how many industries and sectors benefit from the grocery tax? It funds things like education, local governments, and our transportation industry.

The money that maintains our roads, highways, bridges, and more comes from a mix of gas tax, vehicle registration, and sales tax (including grocery tax). In fact, the grocery tax generates $805 million each six-year plan for transportation. So, while cutting the grocery tax dedicated to transportation may appear to be a small amount, it could have an impact that lasts forever.

It is vital that if the General Assembly votes to remove the grocery tax, they do so with a plan for a substitute of dedicated, long-term funding for transportation infrastructure. Please contact your elected officials and let them know you want them to create a plan for sustainable transportation funding to replace what will be lost from the grocery tax.

You can find elected officials here:
Senate Finance and Appropriations Committee
House Appropriations Committee

Without this solution, we will see long lasting impacts on the maintenance of our roads, highways, bridges and more. We could also see the delay of vital projects across the Commonwealth, such as:

  • Widening I-64
  • Additional improvements to I-81
  • Berkley Bridge rehab
  • Rt. 123 & I95 interchange
  • Route 29 Widening in Fairfax
  • Holland Road Connection

A healthy transportation industry means safe roads—and thousands of jobs, billions in economic activity, and often millions in tax revenue for Virginia. $1 billion in transportation projects creates 13,000 direct jobs. This industry has far-reaching impacts on our citizens in every city, town, and rural area.

Having healthy, sustainable forms of funding to keep our transportation network safe and reliable is vital to moving the Commonwealth forward. Please help us spread the word.


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