As Olympia Meola reports, Gov. Timothy M. Kaines’ transportation proposal has new life, however short. While Democrats and Republicans ponder their strategy at the state Capitol, here’s a refresher course on Kaines’ plan. You’ll note that it includes no increase in gasoline taxes.
Highlights of governor’s transportation proposal
The proposal would raise $727.9 million in new transportation funding in fiscal 2009. That figure would rise to $1.08 billion in fiscal 2014.
Motor vehicle titling tax
Increase the state’s motor vehicle titling tax to 4 percent from 3 percent of the sale price. The increase would be phased in, with half a percentage point in January 2009 and the other half implemented in July 2009. The increase would raise $39.2 million in fiscal 2009 and rise to $212 million in fiscal 2014.
Vehicle registration fee
Increase the state’s annual vehicle registration fee to $49 from $39. The additional $10 would raise $72.5 million in fiscal 2009 and rise to $77.4 million in fiscal 2014.
Regional sales tax
Increase the sales tax in Northern Virginia and Hampton Roads to 6 percent from 5 percent on items other than food or medicine. In Northern Virginia, the extra 1 percent would raise $306.3 million in fiscal 2009 and $414.3 million in fiscal 2014. In Hampton Roads, it would raise $167.9 million in fiscal 2009 and $227.1 million in fiscal 2014.
Grantor’s tax
Increase the statewide grantor’s tax, paid by the seller of property, to 35 cents per $100 of the sale price from 10 cents per $100. The 25-cent increase would raise $142 million in fiscal 2009 for transit, rail and options such as teleworking and ridesharing, rising to $155 million by fiscal 2014.
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