Like a traveling salesman, Gov. Tim Kaine hit the road in Northern Virginia last night to pitch his plan to boost transportation spending and relieve traffic congestion. Motorists in the northern part of the state would be among the hardest hit by his proposed $1 billion in new taxes — but arguably would benefit the most.
“This is the choir. You understand there’s a challenge,” Mr. Kaine, a Democrat, told a gathering in Woodbridge, the first of a series of town-hall meetings on his proposal.
Mr. Kaine’s plan, announced Monday in Richmond, proposes increasing the statewide sales tax on vehicles from 3 percent to 4 percent and increasing the annual vehicle registration fee from $39 to $49.
In Northern Virginia and Hampton Roads — two of the most congested regions in the state — the governor also hopes to increase the retail sales tax by 1 percent on everything but food and medicine.
Addressing a crowd of roughly 125 people last night at the Dr. A.J. Ferlazzo Building Auditorium, Mr. Kaine stressed that Virginians pay less in taxes to fund transportation than do residents in many other states.
“We will never, ever solve this problem unless we become a more significant investor” in transportation infrastructure, Mr. Kaine said. He repeated that he doesn’t support a gas-tax increase now because of record-high prices.
Some residents and community leaders at the town hall questioned Mr. Kaine about alternative methods to raise transportation funds, such as cutting spending in other areas.
Bryan Martin, owner of Delivered Electric in Woodbridge, said after the meeting that the tax increase will hurt his business.
“My main issue with the taxes is that they’re too high now,” said Mr. Martin, 38. “They can’t keep expecting us to open our wallets when economic times are tough.”
Greta Houston, 62, of Occoquan, told Mr. Kaine that she wouldn’t mind paying more taxes to fund the improvements.
“That small amount of taxes is just not a burden for me,” Ms. Houston said. “I’m happy to do it.”
Mr. Kaine’s plan aims in part to cover a deficit in maintenance funding for roads and bridges to prevent diverting funds intended for road construction.
The proposal also includes raising the statewide grantors tax to increase investments in rail transit and to reduce traffic congestion and would dedicate regional sales taxes to local projects in Hampton Roads and to the Northern Virginia Transportation Authority (NVTA). The grantors tax is a statewide levy on home sellers at closing. Mr. Kaine is proposing to raise it by 25 cents per $100 of assessed value, from 10 cents.
Income from the proposal would help replace revenue lost when the state Supreme Court on Feb. 29 struck down a funding mechanism that gave regional taxing powers to the unelected NVTA and to a similar body in Hampton Roads, which Mr. Kaine is seeking to abolish.
That plan, passed by the General Assembly last year, was expected to raise $1 billion annually — about half of which was expected to come from the regional taxes. Mr. Kaine last night stressed that state legislators passed similar tax increases last year but said he would be willing to work with lawmakers to improve the plan.
Mr. Kaine’s plan is the third time since he took office in 2006 that he or lawmakers have attempted to solve the state’s transportation crisis. Lawmakers are expected to consider his proposal during a special session beginning June 23 in Richmond.
But some House Republicans already have pledged not to support the governor’s plan.
“I am very doubtful that this plan has any chance of passage,” said Delegate Timothy D. Hugo, Fairfax Republican. “I will not vote for any plan that will tax Northern Virginians twice, and continue to send our hard-earned money downstate to never be seen again.”
Delegate David B. Albo, Fairfax Republican, said House and Senate leaders are currently too divided on enacting local or statewide taxes and on the exact amount of the maintenance deficit to reach a compromise.
He also said he is rejecting Mr. Kaine’s proposal because it would send resulting revenue raised in Northern Virginia elsewhere in the state.
“We’re willing to do something statewide, but we’re not sending our money to build roads in [southern Virginia] where they don’t need them,” Mr. Albo said.
Sen. Mary Margaret Whipple, Arlington Democrat and party caucus chairwoman, cheered Mr. Kaine’s proposal as “a robust package” and said she supported the call for a statewide funding mechanism.
“It’s typical in the legislative process for there to be amendments and changes along the way,” Mrs. Whipple said. “The main thing is, we’ve got a statewide plan along with the two regionals, and that is adequate to meet the real need.”
ROADSHOW
Key points in Virginia Gov. Tim Kaine’s transportation proposal, which he will pitch at stops across the state:
- Increase the state motor-vehicle sales tax from 3 percent to 4 percent
- Increase the yearly state vehicle-registration fee by $10
- Increase the retail sales tax in Northern Virginia and Hampton Roads by 1 percent (does not apply to food or drugs)
- Increase the statewide grantor’s tax by 25 cents
- Dedicate regional sales taxes to the Northern Virginia Transportation Authority
- Dedicate regional sales taxes to seven projects in Hampton Roads
- Abolish the Hampton Roads Transportation Authority
Source: Governor’s Office
THE WASHINGTON TIMES
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