The Virginia Supreme Court dealt a crippling blow to the region’s transportation plans on Friday when it ruled that the General Assembly cannot delegate taxing power to nonelected bodies.
The ruling means that the seven taxes and fees the Hampton Roads Transportation Authority had planned to impose in May to finance about $9 billion in road projects cannot be collected.
Because it did not strike down the state’s right to create it, the high court left open the possibility that the authority could survive. But the court placed responsibility for raising revenue to finance the road projects squarely on the shoulders of state legislators.
The unanimous ruling hit the General Assembly like a bomb, leaving lawmakers in Richmond dazed about what to do on the complex and politically charged issue of transportation.
They also were uncertain whether a new plan could be pieced together before the legislature’s scheduled adjournment March 8. Many lawmakers said they would spend the weekend digesting the decision before settling on a next step.
Art Collins, acting executive director of the Hampton Roads Transportation Authority, characterized the ruling in stark terms.
“We just went back 12 years,” he said. “We have no valid transportation plan now. It is just nuclear – that’s the only way to describe it. There is no reading between the lines. They said you can’t do it.”
Gov. Timothy M. Kaine, who met Friday afternoon with House and Senate leaders, said there was clear consensus that the General Assembly should call a special session to address transportation later this year.
“It would be very hard to wrestle with this over the course of the next week,” Kaine said.
Many Democratic lawmakers said the ruling was a repudiation of the House Republican leadership, which had sponsored the road bill last year that left the decision about raising taxes and fees in the hands of the regional authorities.
“I think the message from the court opinion is pretty clear,” Kaine said. “If we’re going to wrestle with the transportation infrastructure, then General Assembly members have to go up on the board and vote and not hand that responsibility off to others.”
Upon learning of the decision, Del. Lionell Spruill Sr., D-Chesapeake, uttered a triumphant “Yes!”
“First of all, I didn’t vote for it anyway,” Spruill said. “My question is, 'How can a city tax another city?’ So I was right. I voted against it because it’s not right for a group of cities to form an authority to tax another city.”
If lawmakers were uncertain about their next move, Virginia’s two most populous regions were reeling.
In Hampton Roads, there now appears to be no clear path to address nagging problems of congestion at tunnels and bridges, especially the Hampton Roads Bridge-Tunnel.
Long-range road-building plans – already years behind schedule and growing in cost – will be set back again unless the Assembly can act quickly, regional planners said.
Plans for widening Interstate 64 on the Peninsula and at the chronically congested High-Rise Bridge in Chesapeake, as well as a safer U.S. 460, a hurricane evacuation route and the third crossing at Hampton Roads, were again in limbo.
Norfolk Mayor Paul Fraim, the authority’s chairman, said he plans to meet with Kaine on Monday to discuss the region’s next move.
“It’s a setback,” Fraim said.
Opponents of the authority, who have long argued it was constitutionally dubious, rejoiced, saying the high court supported their long struggle to force lawmakers to ask all Virginians, not just the large metropolitan regions, to pay for road improvements.
The groups have also said they would support tax increases if the General Assembly first approved a constitutional amendment protecting the money for any use other than congestion relief. Numerous efforts to accomplish that have failed.
“We are ecstatic about it,” said Robert Dean, head of the Virginia Beach Taxpayer Alliance, which supported the suit against the authorities.
“We relied heavily on the common sense of the Supreme Court,” Dean said. “It’s a great day for the taxpayers of Hampton Roads and Northern Virginia. Now what the General Assembly needs to do is go back to the drawing board and listen to the taxpayers who have to fund these projects.”
Sen. Frank Wagner, R-Virginia Beach, said: “We have serious transportation problems in Hampton Roads. Everybody knows that. This was the solution to fund those transportation problems.”
The court ruling “doesn’t make the cost go away. What it does mean is we’re going to have to come up with a creative plan to get those projects back in the mill and move them forward again,” Wagner said.
If the worries of Hampton Roads were heightened, they were much worse in Northern Virginia, where the authority has already begun collecting taxes and fees to support is regional projects.
Christopher Zimmerman, chairman of the Northern Virginia Transportation Authority, called the ruling a “severe setback.”
The authority, which is in the process of hiring staff, has already approved a $497 million plan that includes $50 million a year for Washington’s Metro system, $25 million a year for the Virginia Regional Express, and numerous road projects.
“We put that all in place this year, and now that is all at risk,” Zimmerman said. “The General Assembly needs to act immediately. This is a problem they can fix. … Without a fix, the NVTA will be out of business.”
Zimmerman said he did not know how much tax revenue the authority had collected to date, but none of it has been spent.
The Supreme Court ruling dealt directly with the Northern Virginia Transportation Authority but also applied to Hampton Roads.
The court specifically ruled on two major issues: whether the law that created the authorities was constitutional, and whether the state constitution prohibits lawmakers from delegating the power of taxation to a political subdivision, such as an authority, to address transportation issues.
The law was part of HB3202, a landmark bill that legislators spent months crafting in early 2007 after previous efforts, including two failed special sessions, ended in a stalemate over higher taxes.
A controversial portion of that transportation bill – the levying of expensive fees on drivers convicted of major driving infractions – was overturned by lawmakers earlier this year after strong public protest.
The regional authorities were created as a compromise intended to appease rural lawmakers who don’t want to raise state taxes to help traffic-clogged regions and urban legislators who were betting their constituents were willing to shoulder higher bills if they could be used on local projects.
The bill also contained provisions that require stronger transportation planning to deal with urban sprawl, and a $3 billion bond offering to raise cash to support statewide programs, especially maintenance, which is consuming increasing amounts of cash needed for construction.
The court did not rule on those features, allowing them to remain in effect. But its comment on the authorities was unambiguous.
In enacting HB3202 last year, the court said, “The General Assembly failed to adhere to the mandates of accountability and transparency that the Constitution requires when the General Assembly exercises legislative taxing authority permitted by the constitution.”
If higher taxes are needed, then it’s the responsibility of the General Assembly to raise them, the court said. They cannot delegate their taxing authority to a nonelected body, such as the NVTA.
The Assembly also may not indirectly impose taxes on citizens without a majority of the legislature agreeing, the court said. The ruling was written by Justice Bernard Goodwyn , who was appointed to the court this year and had been a Circuit Court judge in Chesapeake.
Friday’s ruling stems from a suit filed in July by the Northern Virginia authority in Arlington County Circuit Court seeking to clarify whether the bonds it wanted to issue were valid and whether the taxes and fees were constitutionally sound.
Kaine, Attorney General Bob McDonnell and House Speaker William Howell, R-Stafford, who sponsored the bill, signed on as plaintiffs.
The Loudoun County Board opposed the issuing of the bonds, and a group of citizens, led by Del. Robert Marshall, R-Prince William, filed suit against the bonds.
The lower court later held that the Northern Virginia authority was “within the legislative powers of the General Assembly” and did not violate the state constitution.
It also said the regional fees and taxes raised to pay for the bonds are “valid and legal and meet the requirement of the Constitution of Virginia.”
The Supreme Court’s ruling overrides that judgment.
Staff writer Julian Walker contributed to this report.
Tom Holden, (757) 446-2331, tom.holden@pilotonline.com
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TAX GAS its so simple right. NO never ever, Good on the court
All the hullabloo & bureaucracy could simply go away if we just added a road tax to the price of gas. The users of gas use the roads and if we want more roads we pay the tax. Small efficient cars, Vespa scooters & motorcycles use less gas and pay less tax-simple right? No No No sorry I said all that-as I know the tax on gas will progressively over the years get higher and eventually be like Europe, Canada & Asia equivalent to over $6.00 a gallon. Walk more, ride a bike, take the bus, carpool, demand better alternatives-such as light rail, more user friendly sidewalks in our neighborhoods and more park & ride lots. Then while it takes years to build new roads, extend off ramps, and all the added congestion we can personally transition to smarter ways to get around. Like live closer to work or work at home. Its very obvious these elected legislatures are scared to piss of us voters so they want to put the decisions to spend our money off on others. I never thought HRTA was the way to go. GOOD of the state court to proclaim it is unconstitutional.
Praise the Virginia Supreme Court
Kudos to the Virginia Supreme Court who calle dthe Virginia legislature out on its cowardly passing of the buck and blame to the unelected authorities. These laws cominhg from a legislature that doesn't have the courage to protect its elderly and hard working citizens from the predatory payday lending industry that is charging 500% APR or more and using deceptive and abusive collection practices on our grandparents, parents, neighbors and community as they bring down the quality of our shopping centers with their loan shark atmoshphere and practices. Shame on the legislature, kudos to the Supremes.
Aww..
Don't you just love that little pouty face on fraim? Looks like a little baby that just had his toys taken away. OOPS! He did! He doesn't get to play tax-man on citizens that did not vote for him!. Poor little boy. Go cry in the corner with tax-em-dorf and collins. I can hear those 3 now. "Dang citizens!". "Dang Constitution!" "Always getting in the way of my political career".
Put up or shut up
For all those who think we should pay more taxes, it's now easier than ever with Virginia's Tax Me More fund:
http://www.tax.virginia.gov/site.cfm?alias=GeneralFundDonations
Don't tell me government knows how to spend my money better than I do.
For those of us who still believe in the vision our founding fathers had, I have 2 words : user fees
how many of our precious tax
how many of our precious tax dollars were spent on this failed effort to solve the transportation crisis? Every member of the General Assembly who voted for this legislation should have to explain their basis for believing this legislation was Constitutional-Who was giving them this advice? They should be fired, and then we should vote out of office all those who voted for this failed legislation..This is the result of ramming through legislation at the 11th hour to solve a problem without thinking through all the issues associated with it..The General Assembly needs to take ownership of this problem and go ahead and increase taxes to fund the transporation projects..Lets hope they do not come up with yet another "gutless" solution...
champion of hrta
Likely future gubernatorial candidate AG Bob McD will defend the taxing abilities of the HRTA.
June 12, 2007 -- "In a letter earlier this month, the Virginia Attorney General's Office said any legislation by the General Assembly is presumed to be constitutional.
"All legislative power is vested in the General Assembly, and the power to tax 'is a legislative power which the General Assembly inherently enjoys,' " wrote Deputy Attorney General Stephanie Hamlett.
The letter was addressed to the city attorneys for all municipalities that would participate in authorities in Northern Virginia and Hampton Roads.
Hamlett also said the bill that authorized the creation of the roads agency "is constitutional and this office will vigorously defend any additional challenge to the legislation." "
Whining and Crying
Instead of our local leaders rejoicing that our system of government works by the ruling of the court upholding the Virginia Constitution they are wallowing in tears. This is an eye opener as they affirm they are more tax and spend than disciples of our democracy.
Taxes!
In chatting with my friends and reading blogs, I haven't seen little anti tax sentiment. What I've seen is the method under which the GA attempted to extort the funds. Most people see the need for improved roads. It's just getting the politicians on board by passing a simple gasoline tax to produce that revenue nedded. Setting up another layer of government like the taxing authority is not cost effective and obviously unconstitutional. You can bet thou8gh that the politicians will come up with another complicated plan that will make us scratch our heads.
A common anti-tax whine
Barack Obama, our next president, writes in "The Audacity of Hope" that tall tales and conspiracy theories "contain just enough truth to satisfy those predisposed to believe in them, without admitting any contradictions that might shake up their assumptions."
So it goes with the anti-tax crowd. Despite evidence to the contrary - like crumbling roads - they will find enough "truth" of waste, mingled with their opinion of programs they dislike, to declare "The money is already there."
Fortunately, the majority is not so blind. Governments do produce waste and people do disagree about the value of various programs and projects. But, in the end, taxes increase along with everything else.
Intelligent people understand this, even if they don't like it. Our needs are clear. It's time for the republican GA to stop pandering to the anti-tax, anti-government crowd.
Thank you Virginia Supreme
Thank you Virginia Supreme Court. Members of a COMMONWEALTH should not be required to fund their own projects in addition to funding the rest of the state's. Any people laughing at Virginians are laughing at those so willing to be taxed into poverty.
Double Taxing
DUH! Doesn't anybody get it? We were about to get DOUBLED TAX. Everytime we pump gas or buy certain items we are taxed for road projects. NOW they wanted to just give Hampton Roads the privledge of getting taxed again for road projects. Maybe I don't get it, but I am so happy the courts ruled the way they did. Everyone complains they do not want to pay higher taxes, but our wonderful state government wanted us to be doubled taxed for roads. Come on people wise up!
Solution
The GA might consider using the current gas tax to actually fix the roads instead of funding pet projects. Why in the world is the gas tax used to pay Virginia Tech teacher salaries? One example of millions siphoned off for projects other than roads.
Good for the Supreme Court
There are signs - however faint - of intelligent life in Virginia after all.
The courts have placed the obligation to raise taxes for roads right where it belongs - back on the republican general assembly.
As usual, the fiscally conservative party - which is better at creating record-setting deficits than solutions - tried to pass this bitter pill to someone else.
Now, they will have to pass new taxes or face an angry majority that is demanding more money for roads and schools.
Death to tyranny?? Oh please, put the flint musket down.
Apples to Acorns
Terry Suit acted to protect the MINORITY from the tyrrany of the majority and preserve the RIGHT of business owners to decide for themselves what they will and will not allow in their establishments. I'm sorry that people you obviously hate have retained a choice you would happily take from them, but YOU still have the right to take your whining to an establishment where smoking is no longer permitted-by the OWNERS of the establishment and NOT the government.
Do you non-smokers have to whine ALL the time?
No more illegal taxing authority - AWWWWW
Mike Barrett is all worried about a "slow decline in accessibility, and our ports and tourism industries decline as we cede business to our competitors, then Hampton Roads will re-balkanize, it will go back to being a backwater, young people will leave in droves, national retailers will seek greener pastures, and we'll get what the lowest common denominator among us wants. Gridlock, isolation, and decline."
I personally can't think of anything I would like to see more! Decline in urban blight, no more development sprawl, developers leaving the area and not lining many local elected officials pockets with cash, and that mass exodus sure would solve that pesky transportation problem. Heck, less justification too for all those "core services" and capitol projects our elected representatives have been telling us they need to pick our wallets clean to fund. Nope, I can't think of anything I would like more.
Time to be what they were elected to be
Finally! Instead of being such wimps, our elected officials will now have to make tough decisions. You can't have the prestige of elected office without the responsibilities that go along with it. Flat tax or gas tax-either one is about the only equitable way to go.
31 Nuculearer
Either Virginia has a VDOT or it does not. Dense-urban taxpayers greatly provision Virginia's rural paved roads and services. Same goes for electricity, telephony, natgas, gasoline, cable TV, etcetera. For example, it costs more to maintain RT 10/32 per vehicle traveled than I-264 Norfolk to Virginia Beach. Call it empirical economies of scale. It appears that an incredible amount of gross tax revenues and proffers realized and deposited in Virginia coffers from all sources during the exuberant years have been squandered on anything but roads in EAVA/SOVA, but not RIVA/NOVA! Now in addition, like so many homeowners, cities in Virginia and nationwide, are waking up to the realities of their own version of the "Hometown Equity Line Of Credit" -Municipal Bonds. Time for my state to hammerdown waste, inefficiency, bloat, perks, and pork, except in Smithfield.
That's what you get when...
Some politicians falsely think that "that's what the American (or Virginians) want" when it comes to their actions in office. They wind up with pie on their face when decisions are challenged in court. That's what they get for poorly thought out decisions.
Take a look at the smoking ban supported by major municipalities in SE Virginia .... delegate Teri Suit ruled against the measure because it is not needed as she put it. Oh, oh. She did not realize most of the cities in SE Virginia support it. Obviously her position IS NOT representative of the majority.
Wasted effort
The 2007 Virginia General Assembly in cooperation with Lobbyist / Developers etc. forced HB3202 creating a taxing authority to build eight road projects at a cost of 8 billion dollars. Over sixty percent of the money earmarked to build one project for the truck traffic to and from Norfolk International Terminal. Now the State Supreme Court rules it unconstitutional. What a waste of time and effort by a group of the most educated business professionals in Virginia.
Next time try putting together a package of road projects that makes since to those you want to pay the bill. The majority of residence in the Hampton Roads area would support the current package of projects if you took out the five billion dollar third crossing.
And eliminate some of these Transportation Commissions and Authorities. Your spending what transportation funds we do have on administrative positions. We need to hire more people who know how to use road building construction equipment.
WOW
We told them and they told us that they were smarter than the voters and tried to stick us with a bill to give the ports a new road and tunnel. Op Ed lawyers and our GA Lawyers must of received their law degrees from an online college degree mill! It's simple, you can't tax us without representation! DUH!