Virginia Backtracks on Its Hybrid Car Tax

A year ago, Virginia Republican Governor Bob McDonnell pushed through a massive overhaul of the state’s transportation system, changing how basic things like roads, bridges, and public buses get funded. Along the way, two strange things happened: Virginia became the first state to abolish its gasoline tax and the second to impose a special tax on fuel-efficient alternative vehicles—aka the Prius tax.

In a way, the move was forward-thinking. It headed off a problem that all states face when linking gasoline consumption to transportation funding. Since we’re driving fewer miles in more fuel-efficient cars, the gasoline tax is starting to look like an unsustainable primary source of transportation dollars. Coming up with a new way to finance roads and bridges made sense.