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Proposal for South Central Transportation Authority calls for local control of regional transport dollars

Surry County Board of Supervisors · June 4, 2026
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Summary

Crater PDC director Jay Ellerton outlined a proposal for a South Central Transportation Authority that would return a share of existing VDOT-collected gas/diesel tax revenue to local jurisdictions and add a proposed 0.7¢ sales-tax piece; the plan would use one-jurisdiction/one-vote governance and allocate 55% to local jurisdictions, 35% to regional projects and 10% to public transit.

Jay Ellerton, executive director of the Crater Planning District Commission, told the Surry County Board June 4 that a South Central Transportation Authority would create a stable, local mechanism to fund regional transportation projects and address long-standing unfunded needs in rural jurisdictions.

Ellerton said the structure relies largely on tax revenue already collected by VDOT — gasoline and diesel taxes — plus a proposed additional 0.7¢ on the sales tax. “This is tax dollars. Gasoline tax, diesel tax, it's already being collected,” he said, adding that the sales-tax addition would be the new piece.

Ellerton described governance as “one jurisdiction, one vote,” and urged localities to pass local support and talk with their legislators as the proposal moves toward the General Assembly. On an illustrative revenue distribution he recommended returning 55% of revenues to local jurisdictions, allocating 35% to regional projects, and dedicating 10% to public transit.

Board members raised clarifying questions about whether the change would add a new gas tax or use existing collections and about representational fairness for rural areas. Supervisor Seward asked whether the proposal included an additional gas tax or sales tax; Ellerton replied that the proposal did not add a new gas tax but would use the existing collected fuel tax and the proposed sales-tax increment.

Ellerton said the earliest the authority could be established is July 1, 2027, pending legislation and local support. He asked the board to continue engagement and to consider the regional financing options as the item moves toward Richmond.