Taxpayers in 12 cities and counties won a temporary reprieve on Monday when the Hampton Roads Transportation Authority announced a 30-day delay in collecting new regional taxes and fees.
Starting May 1, the authority plans to impose seven new taxes and fees as part of a decades-long effort to finance about $9 billion in regional transportation projects. Among the new charges are a higher gasoline tax and new taxes on vehicle sales, rentals and repairs.
The delay is a break for motorists – who will pay the lion’s share of the new taxes – but the reason is bureaucratic.
Originally, the new taxes and fees were to start Jan. 1. However when the transportation authority’s governing body met for the first time last summer, it set April 1 as the start date.
The three-month delay was intended to give the General Assembly one last chance to simplify the taxes and fees by eliminating two new charges the authority felt were the most unpopular: the higher grantor’s tax on property sales and a new tax on vehicle repair labor.
When the General Assembly convened in January, the regional authority’s fate was immediately put in doubt. Some Peninsula lawmakers announced plans to kill it or change the authority’s rules so that a small group of localities could prevent it from levying the new fees.
Faced with an uncertain future, the authority decided to wait until the session’s halfway point – Feb. 12 – when legislative rules would make it difficult to introduce new bills aimed at altering the authority.
However, the authority still had a problem.
Some bills are lingering, such as legislation that would require the Department of Motor Vehicles rather than auto dealers collect a one-time initial vehicle registration fee .
To ensure no surprises during the final month of debate or during the governor’s veto session – now scheduled for early April – the authority decided to push the new tax date to May 1.
“In exchange for these taxes, the citizens of Hampton Roads will get a transportation network that will work,” said Arthur L. Collins , the authority’s acting executive director.
The new taxes will apply to residents in the cities of Chesapeake, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginian Beach and Williamsburg; and the counties of Isle of Wight, James City and York.
The taxes are:
- 2 percent increase in gas sales tax. If gas is $3 a gallon, a 15-gallon fill-up will cost an extra 90 cents. Annual revenue for roads: $30.2 million .
- Increase in tax on property sales. The grantor’s tax rate will increase from 10 cents per $100 of the sale price to 50 cents per $100. The tax on a house sold for $250,000 will be $1,250 – a $1,000 increase. Annual revenue : $42.8 million .
- 2 percent tax on vehicle rentals. A $30-a-day car rental will cost an extra 60 cents a day. Annual revenue: $3.5 million .
- 5 percent sales tax on auto repair labor. The tax on a $100 repair bill will be $5. Annual revenue: $18.9 million .
New fees are:
- $10 increase in annual vehicle registration fee, raising it to $49.50 for cars. Annual revenue: $13.3 million .
- $10 increase in annual vehicle inspection fee. Owners will pay $26 a year for car inspections. Annual revenue: $12.3 million.
- An initial titling fee equal to 1 percent of vehicle value. The average price of a new car in Virginia is $28,400, meaning the buyer would pay $284. Annual revenue: about $41.2 million .
Tom Holden, (757) 446-2331, tom.holden@pilotonline.com
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leadership?
The repub leadership in both sides of the then legislature approved and pushed for the roads bill with its new taxes, tolls, fees and increased bureaucracy. Repubs whine about moderate repubs. The same 'moderate' repubs they predominantly supported in the elections that got them there.
keithb...
Just "let us know" when your Democrat leadership can rally and get this struck down for us. Okay? The Senate HB 3202 results? You see the fruits of their bad (Yay) votes with many not being reelected. GOOD! I want Conservative Republicans in place not Moderates. Kaine didn't have to sign it did he? Why would he sign it? Everyone voting Nay were of the same party as he. If he thought it was a bad idea he wouldn't have signed it. He is the leading Democrat in Virginia and with the Nay votes being all Democrats he should have gone with the Democrat consensus. Shouldn't that have enraged them? At least with so many Republicans voting Yay, you have something with which to deflect criticism of your party away.
The Labor Tax
5% tax on auto repair labor may only send Hampton Road's customers of auto repair shops to Moyock for any major repairs. 5% adds up to a lot of money on a major repair, maybe cheaper to tow the vehicle to NC. Even if it isn't some people just may object to paying the tax & take it there solely for that reason. Why should the shop employees pay state tax on thier labor & the customer paying a tax on that same labor? Northern Va residents may find themselves talking their vehicles to DC, or Rockville MD..whatever is closer & out of that part of the commonwealth.
Gordonwall You Are Not The Only One
you are right..that truly is unfair. If we have to pay for ours, they should have to pay for thiers.
HRTA
He speaks the truth. That's probably why some of the Republicans in the House and Senate lost their seats for their votes in favor of the HRTA which really stands for Hampton Roads Taxing Authority). The Republicans had a chance this time to do away with it and they still blew it.
"Because the Republicans wanted it?"?
The repubs did want it. "How about the majority of us citizens who don't want it?" The repubs approved all the new taxes, fees, tolls and such of the roads bill despite the wishes of the majority.
You must be proud (Keithb)...
...that Kaine is so overwhelmed by us bad bad Republicans! If he weren't in support of it why did he do it? Because the Republicans wanted it? How about the majority of us citizens who don't want it? I'm glad you don't like it though, so you're improving. At least be consistent and condemn the Liberal Democrats as much as you do the Republicans who support HRTA.
I hear
...that they are going to turn one of the HRBT tubes into the Hampton Racing and Betting Track. They just had their first trail run today. That should more then cover road repairs in the area and horse manure cleaning once a week...
;-)
What next?
What I hate the most about these new taxes and fees are how they are being applied to my home. Granted the grantors tax would only be applied when I sell my home, but come on now, enough of the taxing of my home. My home doesn't have wheels and can't be driven to work. So why tax my home even more? The funniest and most terrifying thing about this article was the quote “In exchange for these taxes, the citizens of Hampton Roads will get a transportation network that will work.” Do you really think with all the changes and "improvements" to our roads, it's going to work? Just like most government committees, authorities or councils, they will ALWAYS find an excuse to say it is not working and raise our taxes and fees once again. It's an endless cycle that needs to stop. Remember the tolls on the Virginia Beach-Norfolk Expressway? Well they took them down because the road was paid for, but now there is talk of bringing the tolls back just to cover the maintenance cost and changes for the expressway, oh wait I-264 now. See, endless cycle. What are they going to do when taxes and tolls aren't enough? I guess the next thing they will do is to tell us that we will need to install a H
For once the ogre behind the curtain is mentioned.
For many years the odious shill behind the transportation 'graft board' has promoted new fees,taxes,and tolls as a way for existing residents to pay the costs of his developer friends and employers.Now he's managed to get what he wants,but benevolently allows us to say goodbye to our earned income another month before his friends get to use it.Nice to see him actually named in the Pilot.We can't just let the last election cycle be the last word.Every election,state and local,in every cycle must be a referendum on those who support,preside over,and defend this transfer of our meager wealth to the wealthy developers.Unfortunately,some of the scoundrels weren't voted out last time,and it's chief cheerleader,Taxin'Tim Kaine,will be inflicted on us until the end of next year.By the way,does the bimbo-chasing recent former governor running for Senator have an opinion on high taxes?Oh right,I remember HIS tax policy.
ewesthoff
A google search will find lots of right wing talking points which usually ignore the republican love for taxes.
HRTA
For the record of this discussion, Councilwoman Reba McClanan and Councilwoman Barbara Henley voted AGAINST Virginia Beach joining The HRTA. In my view she is the only person that would merit to be re-elected in 2008.
The rest of them are deaf as a post.
Let 'em know
Here's a list of VB City Council members along with their e-mail addresses. Let them know how you feel! I do...
Meyera Oberndorf
moberndo@VBgov.com
Louis R. Jones
lrjones@VBgov.com
Harry Diezel
hediezel@VBgov.com
Bob Dyer
bdyer@VBgov.com
John Uhrin
juhrin@VBgov.com
Reba McClanahan
rmcclana@vbgov.com
Barbara Henley
bhenley@VBgov.com
Bill DeSteph
bdesteph@VBgov.com
Ron Villanueva
rvillanu@VBgov.com
Rosemary Wilson
rcwilson@VBgov.com
James L. Wood
jlwood@VBgov.com
The Transportation Authorities
I found an article that says that the Transportation Authority case was argued to The Virginia Supreme Court on Jan 8, 2008. Let's hope that this court will see the farce that it is and that it has become back door regional government. Fees and taxes are one in the same. Just as a hammer is a nail driving instrument.
http://vlweekly.blogspot.com/2008/01/supreme-court-hears-transportation.html
The case is supposed to settled March 2, 2008.
The cases are Marshall v. Northern Virginia Transportation Authority, Record No. 071959 and Loudoun County Board of Supervisors v. NVTA, 071979.
taxes are not collected equally
Am i the only one who thinks it is unfair for Hampton Roads residents pay to fix the roads in their area as well as the rest of the state. If people in Roanoak want I-81 fixed let them pay for it like Hampton Roads residents do. Every area of the state should have to create a transportation authority and get their road money from their residents.
moving
And this is the main reason that we're moving out of the state of VA, we can no longer afford to live here.
Pay day loan
Don't worry about a Loan for now, the government will decide if we can get a pay day loan or not. And of course tax it somehow. If you think things are getting out of hand now with taxes, just wait, more then likely it will get worse just like a virus or infection. Of course if you didn't work and pay taxes, you could lay around and let the government take care of your wants and needs like so many others do. Fix the state welfare system then dig a tunnel to nowhere go figure! TOO MUCH GOVERNMENT!! LET YOUR VOICE BE HEARD!!
Citizens Get A Road Tax Reprieve
A majority of citizens are against giving authority to the Hampton Roads Transportation Authority, to impose any taxes, fees or tolls for road and tunnel construction or for planning and construction. Taxation without representation. The fact is the huge spike in gas prices is causing fear of a citizen back lash, should the road taxes take effect. In truth, whatever the cost projections of the proposed projects, in view of the high rate of inflation and economic uncertainties being experienced by the nation and the region as a whole, the current road plan projections are no loner valid. We citizens should demand and be given the opportunity, in light of current economic trends, to have our say and desires immediately recognized by our elected mayors and city councils and an end to the HRTA. I for one will not be buying gas, new automobiles, or having car repairs where this illegal taxing authority has imposed imposed taxes. It's beyond belief that our real estate taxes have risen on false values in a collapsing housing market but these added illegal taxes are a tipping point for a lot of our citizens.
Well at least I have another month
To re-register my car and get it inspected so that I can put off these fees for another year.
KeithB
are you kidding me. do a quick google search with the term tax and spend and see what you find, or go to New York the biggest liberal state in the US and see what you find. it won't be any money left in your pocket, that's for sure.