Tolls, Not Gas and Sales Taxes, Will Fund I-81 Improvements in Virginia

Democratic Gov. Ralph Northam announced he is backing Republican legislation to toll all lanes of Interstate 81 to fund $2.2 billion in improvements along the 325-mile corridor, heavily used by trucks, from West Virginia to Tennessee.

3 minute read

January 13, 2019, 7:00 AM PST

By Irvin Dawid


"The plan, to be introduced in the Virginia General Assembly session that starts Wednesday [Jan. 9], would establish tolls as a source of revenue for 'critical improvements' identified in a state study [pdf] of the route that...suffers from major safety and reliability problems," reports Luz Lazo for The Washington Post. 

With the proposal, Northam and lawmakers representing the western part of the state are choosing to push a toll system over establishing a regional gas tax [and sales and use tax] to pay for the I-81 improvements and in doing so declaring broader support for expanding the state’s toll network.

"It’s time we take decisive action to enhance the safety and improve the reliability of this key corridor,” Northam said in announcing the proposal, which he said would be introduced by state Sens. Mark D. Obenshain (R-Harrisonburg) and Charles W. Carrico Sr. (R-Grayson) and Dels. R. Steven Landes (R-Augusta) and Terry L. Austin (R-Botetourt).

Variable tolls, but not congestion nor dynamically priced

"Electronic toll gantries are expected to be set every 40 to 60 miles or so along I-81, with regular rates set at up to 11 cents a mile for cars and 17 cents a mile for trucks," reports Max Smith for WTOP News.

That would equate to about $55 for trucks to travel the length of I-81 during daylight hours. Tolls would be discounted overnight to encourage truck drivers and others to travel at less-busy times, but the tolls would be a fixed price, unlike the variable cost of lanes on interstates 66, 95 and 495.

Frequent travelers who are Virginia residents could significantly reduce their I-81 toll charges by opting to purchase an unlimited use pass, potentially $30 per year.

Smith adds that high occupancy toll (HOT) lanes and truck-only toll lanes, as Rhode Island is doing, were considered as well. Truck traffic is expected to outpace growth of passenger vehicle traffic on the corridor.

What about authorization from Federal Highway Administration?

Last month, Oregon transportation officials submitted an application to the Federal Highway Authority (FHWA) under the Value Pricing Pilot Program to toll all lanes on stretches of two Portland interstate highways. This correspondent was unable to determine if the I-81 Corridor Improvement Plan requires the Virginia Department of Transportation to apply for an exception to the Title 23 of the United States Code (Highways) general prohibition on the imposition of tolls on Federal-aid highways.

According to FHWA's Center for Innovative Finance Support, the Interstate System Reconstruction and Rehabilitation Pilot Program "allows up to three existing Interstate facilities (highway, bridge, or tunnel) to be tolled to fund needed reconstruction or rehabilitation on Interstate corridors that could not otherwise be adequately maintained or functionally improved without the collection of tolls."

Other revenue options not ruled out

“Everything is on the table right now," Gov. Northam told Jeff Sturgeon of The Roanoke Times on Tuesday. "I would say the consensus is to go more with tolls than taxes,” the governor said.

Related in Planetizen:

Tuesday, January 8, 2019 in The Washington Post

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

Lake Powell with much of the water evaporated.

Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River

Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.

October 30, 2026 - Yale Environment 360

People vote in Chicago behind blue privacy screens

Chicago voters approve permanent festival grounds, penalty for vacant property owners

Currently, major summer and fall festivals take over public parks for weeks at a time, drawing criticism from nearby residents

November 5 - Block Club Chicago

Mayor Zohran Mamdani speaks into a microphone. He wears a gray suit.

NYC votes to cut outdoor dining red tape, speed up permitting

New York City also voted to allow the Department of Transportation to begin work on urgent projects before notifying elected officials.

November 5 - The City Reporter

People in Los Angeles going to the polls, following a sign with an "I Voted" design

California appears to reject Prop. 45

The proposition would have expanded the projects that qualify for a streamlined environmental review, effectively paring down the California Environmental Quality Act.

November 5 - Cal Matters