UPDATE February 22nd, 2013 2:10 p.m.---Virginia's House of Delegates has voted to approve what would become the first major reform in a generation of the state's system for financing its highway network. Friday's vote was 60-40.

If the Senate follows suit, that puts the legislation in front of Gov. Bob McDonnell, who put transportation at the forefront of his policy agenda and has staked his legacy on its passage.

The bill replaces Virginia's 17 1/2 cents-per-gallon retail gasoline tax with a 3.5 percent wholesale tax on gasoline and a 6 percent levy on diesel fuel.

It also boosts statewide sales taxes from 5 percent to 5.3 percent and uses more of the existing sales tax, increases the titling tax on car sales and adds a $100 fee to the purchase of fuel-sipping hybrid vehicles.

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RICHMOND, Va. (AP) -- A decisive vote is hours away in Virginia's General Assembly on what would become the first major reform in a generation of the state's system for financing its network of highways.

The House and Senate will vote on a compromise bill that would replace Virginia's 17 1/2 cents-per-gallon retail gasoline tax with a 3.5 percent wholesale tax on gasoline and a 6 percent levy on diesel fuel.

It also boosts statewide sales taxes from 5 percent to 5.3 percent and uses more of the existing sales tax, increases the titling tax on car sales and adds a $100 fee to the purchase of fuel-sipping hybrid vehicles. It also rules out proposed tolls on Interstate 95 south of Petersburg.

A close vote is expected with Republicans divided over new taxes.

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