The Virginian-Pilot
                               THE LEDGER-STAR 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Tuesday, October 25, 1994              TAG: 9410250496
SECTION: LOCAL                    PAGE: B7   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Short :   31 lines

ALLEN OFFICIAL SAYS NO NEW GASOLINE TAX

There will be no increase in the state's gasoline tax while George Allen is governor, administration officials say.

Transportation Secretary Robert E. Martinez said Monday he sees no need for a gas-tax hike for several more years.

His assessment, delivered to a special House-Senate transportation panel, seemed to dash the hopes of several lawmakers who believe that higher gasoline taxes are essential to improve the state's road system and spur economic development into the next century.

Last year, Gov.-elect Allen derailed a movement by some influential lawmakers to raise the gas tax by as much as a dime a gallon.

Allen said he would veto any gas-tax increase approved by the assembly and the idea was dropped.

Virginians pay 17.7 cents per gallon in state gasoline taxes, lower than most surrounding states.

KEYWORDS: GASOLINE TAX

by CNB