Simple, Statewide, and Sustainable
Those are the three words that Virginia Gov. Tim Kaine (D) uses to describe his plan to raise taxes. Or, is it a transportation plan? Whatever. In this press release today, he calls it a transportation plan, but it sure looks like a plan to raise taxes.
He says he’s interested in “safety first,” and would pay for this highway maintenance with:
“Increases (in) the existing statewide motor vehicles sales tax from 3% to 4%"
“Increases (in) the statewide annual vehicle registration fee by $10”
Both tax increases would be used for maintenance. In addition, both taxes had been approved by the 2007 Virginia General Assembly in the now infamous HB 3202, which was overturned by the Virginia Supreme Court in February.
He then proposes increasing the retail sales tax by 1% in Hampton Roads and Northern Virginia, which would go to the Northern Virginia Transportation Authority and to seven regional projects in Hampton Roads. Interestingly, he proposes abolishing the Hampton Roads Transportation Authority and the current local option income tax in both regions.
Finally, the governor proposes establishing a “transportation change fund” that “will increase investment in transit, rail, and innovative solutions to reduce traffic congestion like teleworking and ridesharing,” specifying that 3/4 of the transportation change fund “will be dedicated to transit and rail projects.” The money for this “fund” would come from a statewide grantor’s tax (i.e., from the sale of your home) of 25 cents. Not to worry though because the General Assembly had previously approved a 40 cent grantor’s tax in the regional HB 3202 package.
More detailed information is available at the governor’s website, e.g., PowerPoint presentations, spreadsheets, both a video and an audio of the governor’s presentation, and a schedule of his townhall meetings in which he’ll be trying to sell you on his plan. This spreadsheet (requires Adobe) summarizes Governor Kaine's plan to raise our taxes.
We’ll growl a lot more about the governor's plan to raise taxes between now and June 23 which is when the governor has called a special session of the General Assembly to address transportation.