First, Tim Kaine’s master plan (via WTOP):
Kaine proposed increasing the titling tax from 3 percent to 4 percent and boosting the registration fee by $10. The governor released details of his plan at a state Capitol news conference Monday.
The governor also proposed increasing the state sales tax by a penny in traffic-clogged northern Virginia and Hampton Roads, with the revenue to be spent only in those regions. He also wants to increase the grantors tax, which is paid by people selling their homes.
Oh, great, the housing market sucks, so let’s increase the tax for selling a house. In one word: brilliant!
Bill Bolling’s and Bill Howell’s (just as scary) master plan (via Virginia Virtucon):
“If we are serious about finding a solution to Virginia’s transportation needs, rather than simply in engaging in another round of political grandstanding, we must keep our focus firmly fixed on solving the main challenge before us – developing a realistic and constitutional framework for providing additional transportation funding in Northern Virginia and Hampton Roads. To try and expand these discussions to a so called statewide solution is unwise and will jeopardize our ability to find workable regional solutions for Northern Virginia and Hampton Roads.
“I look forward to working with the members of the General Assembly to find workable regional transportation solutions for Northern Virginia and Hampton Roads. However, I will not support any effort to increase taxes on a statewide basis and I am confident this is a sentiment shared by a majority of Virginia taxpayers.”
I wonder if people in Hampton Roads and Northern Virginia have a similar sentiment that they shouldn’t be taxed (exclusively) as well?
Because, you know, those are the only areas that need transportation funding.
What Bill Bolling is calling for, by the way, is the revival of HB3202 (minus abusive driver fees). From the bill’s fiscal impact statement:
Northern Virginia Transportation Authority
The proposed legislation proposes a number of fees and taxes that may be adopted by local governments in the Northern Virginia Transportation Authority (the Authority) and paid to the Authority for specified uses. The proposed legislation, if all revenues were enacted on January 1, 2008, would generate $196.5 million in FY 2008 and $409.9 million in FY 2009.
The taxes and fees that localities are authorized to impose are:
Commercial Real Estate tax – 25 percent fair market value
Grantor’s Tax – 40 cents per $100
Motor Vehicle Rental Tax – 2 percent
Original Driver’s License Fee– $100
Transient Occupancy Tax – 2 percent
Hey, great, he wants to increase the tax on selling homes too. Also, isn’t the transient occupancy tax supposed to go to tourism related stuff (§ 58.1-3819)?
Hampton Roads Transportation Authority
The proposed legislation creates the Hampton Roads Transportation Authority, which is to be comprised of local and state elected officials as well as other state representatives. The Authority would be given authority to issue debt, impose and collect tolls, administer contracts, and hire staff. The Authority must be in place by December 31, 2007, and the legislation requires affirmative action by seven localities representing half the population to create. The localities must take action by December 31, 2007, to impose the taxes and fees. The legislation also includes provisions to incorporate the Chesapeake Bay Bridge Tunnel Commission into the Authority in the future, once current debt obligations on the tunnel have been fully satisfied. The proposed legislation, if all revenues were enacted on January 1, 2008, would generate $84.6 million in FY 2008 and $188.8 million in FY 2009. The taxes and fees that localities are authorized to impose are:
Annual license fee – $10
Initial license fee – 1 percent retail value of vehicle
Vehicle inspection fee – $10
Sales and use tax on motor vehicle repairs – 5 percent
Grantor’s tax – $0.40 per $100 value
Rental car fee – 2 percent rental charge
Commercial real property tax – 0.10 percent fair market value of property
Sales tax on motor vehicle fuel – 2 percent
Hey, a two percent gas tax increase, not a two cent increase: $0.06 more per gallon of gas, with the tax increasing every time the base price of gas increase.
It won’t just be Hampton Roads and Northern Virginia, just in this last session of the General Assembly, someone wanted to create another “regional government” that would get to tax the counties in the Richmond area.