Changes Road Funding and Adds District Taxes
Virginia · HB900 · Introduced Jan 13, 2026
Why it matters
People in affected districts could pay higher sales taxes on services and digital goods. Road and transit money would be divided differently among local areas.
What it does
- Would change how state road funds are split among maintenance, construction, and safety programs
- Would shift the highway construction grant split, cutting some shares and adding others
- Would change how money from the Commonwealth Transportation Fund is divided
- Would set new sales and use taxes in certain transportation districts
Status
Latest action (2026-07-21): Continued from last session
About this bill
Would change how Virginia splits transportation money and set new sales taxes on some services and digital goods in certain transportation districts.
Sales & use tax on taxable services & digital personal property; taxes levied in certain districts.
Perspectives
💬 The case for
Some transportation groups would likely say the bill gives districts steady money for roads and transit. They would argue it spreads funding by population and road use.
💬 The case against
Some taxpayer groups would likely say the new taxes raise costs for people and businesses. They may also worry about digital products being taxed for the first time.
Sponsored by
Sponsor details for this state bill are at the source link.
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