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Senate committee votes to repeal controversial hybrid tax

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RICHMOND, Va. (WTVR) — Part of Gov. Bob McDonnell’s landmark transportation plan that called for drivers of hybrids and alternative fuel vehicles to pay an annual fee could be repealed.

The Senate Committee on Finance voted 10-5 Wednesday on an amended version of SB 127. That bill would repeal Virginia’s controversial $64 annual tax on hybrid electric vehicles.

The hybrid tax, which was included as part of a compromise in last year’s transportation reform bill, has attracted opposition from sides of the aisle.

A number of Democratic senators pushed for the repeal.

“We’re asking people to use less gasoline, and then we hit them with a tax when they switch to a more efficient vehicle,” Senator John Miller (D – Newport News) wrote in a news release. “The tax also singles out hybrids: we’re not taxing non-hybrids that get equal or greater gas mileage.”

The measure now heads to the full Senate for a vote.

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