State panels OK increase in gas tax, tolls to fix roads

Posted to: General Assembly News Virginia

Plan for tolls
The House Transportation Committee approved a bill that would allow the Commonwealth Transportation Board to put tolls and rush-hour surcharges on four Hampton Roads projects. If the measure were to become law, the tolls would still need to be approved by the federal government.

Major components of the transportation funding bill (SB6009, Saslaw) passed 21-16 by the Virginia Senate:

STATEWIDE

—Increase the gas tax 1 cent per gallon each of the next six years. Yield: $99.4 million next year.

—Increase titling tax on cars and trucks by a half-percent. Yield: $96.2 million.

—Increase state sales tax by one-fourth percent. Yield: $256.6 million.

NORTHERN VIRGINIA

—Increase the sales tax by one-half cent, the hotel room tax by $5 a night and the grantor's tax paid by home sellers by 40 cents. Yield: $335.4 million.

HAMPTON ROADS

—Increase the sales tax by a penny and the retail gasoline tax by 1 percent. Yield: $214 million.

RICHMOND

Democrats prevailed Wednesday in pushing through the state Senate a bill that would rely on a 6-cent-per-gallon gasoline tax increase to raise money for transportation projects, but their glory may be short-lived.

In a 21-16 vote, the Democratic-controlled Senate vote approved a package that would raise about $1 billion annually to fix existing roads and build new ones throughout the state, as well as raise money for projects in Hampton Roads and Northern Virginia with new regional taxes. No Republicans supported the bill.

"We did what we were supposed to do," said Senate Majority Leader Richard Saslaw, D-Fairfax, who sponsored the bill, adding that it's now in the hands of the House of Delegates. "We sent a plan down. Now it's up to them."

Saslaw's bill is not expected to get enough votes in the Republican-controlled House where tax increase proposals are not greeted warmly.

Before passage, Senate Republicans panned the plan as unfairly skewed toward Northern Virginia and tax-heavy in the midst of a soft economy.

"I am not afraid to increase taxes," said Sen. Thomas Norment Jr., R-James City. "But this is not the time. It is not the place, and every one of you in this room knows it is not going to happen."

Saslaw's plan includes a statewide penny-on-the-gallon increase in the gas tax in each of the next six years, increasing the tax on auto sales to 3.5 percent from 3 percent, and raising to 5.25 percent from 5 percent the state sales tax.

Together, the revenue sources would raise $452 million in the first full year of implementation.

To offset the higher gas tax, Saslaw said his bill would cut by 0.5 percent the sales tax on groceries.

Saslaw's plan also would raise $221 million annually for local projects in Hampton Roads by installing an extra regional penny-on-the-dollar

sales tax and a 1 percent wholesale gas tax increase.

In Northern Virginia, his plan would generate about $335 million through increases to a regional sales tax, a higher grantors tax rate on real estate sales and a $5 per night hotel room tax.

Sen. Kenneth Stolle, R-Virginia Beach, who opposed the bill, said Northern Virginia would get the bulk of new transit dollars, to the exclusion of Hampton Roads and other regions.

"This bill, on a statewide basis, goes against everything that the citizens of Hampton Roads have asked us to do up here," Stolle said.

Sen. Yvonne Miller, D-Norfolk, who voted for the measure, said her constituents have grown impatient waiting for lawmakers to act.

"Whenever the citizens of the commonwealth rise up and say to us, 'You will either solve this problem or we'll leave,' maybe then we will find a solution."

The Senate also approved a bill that would create a lockbox for transportation funds to prevent the money from being spent on other things. To become law, the measure must pass the House this session, then a future General Assembly session, and be approved by voters.

In the House on Wednesday, leaders upheld a pledge made Monday to delay action on Gov. Timothy M. Kaine's plan to increase state transportation funding by $1.1 billion until the Senate voted.

Kaine's plan was the subject of considerable debate, but not a vote, in the Republican-

controlled Rules Committee. It could come up for a House vote as early as today.

House Majority Leader Morgan Griffith, R-Salem, said legislators should explore options for raising road dollars that don't rely on taxes taken "out of the pockets of working people."

Defending the plan, Del. Lionell Spruill Sr., D-Chesapeake, criticized Republicans for not producing an alternative or doing "anything other than crying."

Some legislators expect that ongoing debate probably means the special session will extend into next week.

Julian Walker, (804) 697-1564, julian.walker@pilotonline.com



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Of course, the perfect plan

Of course, the perfect plan is the biggest enemy of a good plan. Fact is, that is why the referendum was defeated in 2002. I believe a large majority of citizens knew then as we know know, that we had to invest in transportation infrastructure, but consensus broke down over how we should pay for it. Some want a gas tax, others a sales tax, some want more reliance on tolls, some don't want tolls, some want the income tax, fees, fines, and some simply want the projects and are willing to cut other programs in the general fund to pay for transportation. Same with the list of regional projects. Well, if we need a consensus of every citizen on every detail of the solution, that means there will never be a solution and we are destined to choke in traffic and waste more and more quality work and family time. We have a representative form of government, and if our representatives will not fulfill their duty to this Commonwealth and its citizens, we need new representatives.

What is your solution?

So the republicans had been in power for many years and haven't offer a solution nor will they offer any in the near future. What make you think they will come up with some great idea? Quit it with the bashing and tell the person you voted for (republicans) to get off their lazy behind and do something. Stop blaming dem, atleast they got the guts to get working on an idea instead of giving lip service. It's the same for the state and for the country. Too much yapping and no substance.

We need to do both: Trim budget fat, raise gasoline tax

I agree that the Commonwealth should look at trimming the fat in its budget to help find money for road improvement projects, but I really don't think that alone will solve the problem. I am OK with raising the gasoline tax IF there is a provision that gasoline tax revenues can ONLY be used for transportation projects and road maintenance, AND this tax increase is uniformly applied statewide, and not just applied to certain regions. The thing about gasoline tax is that the more you drive, and the bigger/heavier vehicle you drive, the more stress you put on the road system, so you should pay more for its improvement and maintenance. I vehemently oppose raising the state sales tax - that puts an unfair burden on people who might not drive very much.

me again

I just want to put this out there to find out the holes in this proposal. How about commuter lanes? These are lanes for compact cars and motorcycles only. Nothing bigger than an accord. Get rid of those stupid HOV lanes it's obviouse we don't like each other enough to carpool and turn those into commuter lanes. Also add these lanes for any of the new road projects put a toll on these roads but give the commuter lanes a discount $1.00 for the regular toll $.50 for the commuter lane cars and $.25 for commuter lane motorcycles etc etc... I think this gives incentive to downsize your vehicles to something more economical and efficient, it may make you feel safer if your driving on roads with vehicles of the same size and these lighter vehicles cause less wear on the roads also the cars are smaller so the lanes could be narrower so maintenance and construction would be cheaper. Well thats it in a nutshell post what you think may be problems with this, or add extra suggestions to make this more feasable.

Hey Georges......

and if I were to follow your last post...I guess talking to a Democrat would be like talking to a guy who has a gun pointed at my head and is demanding me, a hard working citizen, to just open up my wallet and give away all my money?

It's sad, but both parties normally stick to their beliefs, ideals and partisan ways, never listening to one another even if the opposing party has a good idea. Are you any different?

Unacceptable

This proposal is typical of lazy politics. “We need money…. let’s raise taxes!” Why are these people in power? The state needs to take a long hard look at where revenues are going they need to cut there own pet projects not deliver a new burden to its citizens. What makes me the angriest about this is they propose a higher tax on automobiles while the auto market is in distress; they tax gasoline while it’s more expensive than it’s ever been and they want to raise taxes on everyday items we buy even though our money is worth less and less. Taxes go up wages remain stagnant and industry moves out of the country and who can blame them the tax burden on business is outrageous. How about this for a change you politicians use your brains stop being lazy get together and come up with a realistic plan that doesn’t put more of a burden on already overburdened citizens. If politicians put as much effort into working towards a solution as they do bashing one another and using rhetoric that divides us into groups I'm sure something new and exciting will arise. get to it!

Please take out the garbage

ricm2579 -- By the way, it's the same welfare, trailer trash mommies that always vote republican at the end. Most Dem are educated enough not to fall false ideology. Please take out your garbage before you start stereotyping democrats. Both parties have an equal amount of trash and free loaders. Look at Bush and the republicans in past years. Republicans are being dwindling because they offer no solution, only unwanted lip service.

taxes

Why is it that republicans think they are the only ones who pays taxes?

Ya Know

If they would hurry up and make cars hover, then the wear and tear on the roads would be lessened. A little investment now goes a long way later! Hmm maglev cars....

Time to Negotiate Boys and Girls

Everyone (well everyone with an ounce of common sense) realizes the problem. The Senate has passed the ball to the HoD and it is up to the Republican led body to now offer their solution. To all out there in the "no tax" crowd, or the "cut wasteful government spending" crowd and the "I want something for nothing crowd", sorry reality has hit us all squarely in the mouth. You simply can not run an effective government on a shoestring budget. You can't patch potholes, fix bridges, emplace guardrails, put in stop signs, add traffic lights or yes, build major projects like a third crossing or second tube to a tunnel on promises. It takes hard cash. You tell us where to get a few billion dollars from to fund our transportation needs. Enough with your "wasteful Democrats" welfare moms, and lazy state worker crap .... can the rehtoric and tell us exactly how you are going to fund transportation, and schools, and prisons, and other government priorities without taxes. If you are unable to offer the specifics on what essential state functions you want to forego, then shut up and pay your taxes and let adults figure this mess out.

Runaway Train

Most of us hate taxes of any kind but the state should have increased the fuel tax a few cents years ago to fund highways. Delaying this for
20 years has put road building way behind in congested areas. Now due to the rapidly rising cost of fuel and everything else we consume the
cost of new roads will be even more. Now it seems that we are on a runaway train of tax increases or so called fees. I could go along with a small increase in fuel taxes which everyone will pay that drives. I do not agree with increasing taxes on the sale of a home since you never see a house using the highways unless it is being moved to a new location
which is rare. The city and county governments also are good at adding their own boxcars of newly invented names for new fees to this runaway train. Maybe someone can figure out how to put the brakes on this calamity.

Re: swd2k

swd2k, If you noted, I'm a Republican. I've never voted in any Democrat mainly because of the "unecessary" tax increases, such as welfare for some perfectly functional citizens who'd rather sit at home and collect my money without doing anything, or popping babies out left and right (from multiple men) knowing people like you and me will support them through increased taxes - the list goes on. swd2k - what I fail to see in your response is a solution! You sound very much like our current Republican-controlled house - "No new taxes! Oh, and by the way, we really don't have any solution of our own to propose." It's very easy to say, "cut wasteful spending". Fine. Where would you start? You'll quickly find that asking 100 people where they think the waste is, you'll get 50 different answers.

So now we have the classic

So now we have the classic confrontation; the Senate has passed a bill which solves our gridlock, but the House, even though it passed a similar measure last year, now will oppose raising taxes and fees to build essentially the same projects. What gives? Frankly, the majority in the House is betting its future on the stupidity of us, the voters. That is, they fully believe that by a flurry of bills, by spin, by PR gimmicks like another audit, they can convince us that while there was a problem last year, there really is no problem today. Well, I trust my own power of observation of gridlock and my own memory of a transportation system that actually worked in the past. I hope others will ignore the spin and trust their own instinct. Ignoring a profoundly important issue like transportation infrastructure only places more future burden on taxpayers. Costs rise; they don't listen to the spin. A House of Delegates majority that ignores the needs of its citizens deserves to be defeated at the next election cycle. It really is up to us.

Oh, and let's see it from

Oh, and let's see it from someone who is neutral, if that's possible, not a democrat and not a republican reporter. Hmm, they may have to hire a consultant to get someone at the Pilot who would qualify.

Agree JMO. Let's see an

Agree JMO. Let's see an article on what has happened to road funding in the last 20 years.

tracker: re solution

A good start would be to look back at the funds that were intended for road improvements but diverted to other uses. Only after that money has been added back should the GA discuss imposing additional taxes for road improvements.

jmo

It's a shell game designed

It's a shell game designed to milk more money from us. They move the money from A to B. Why? Becuase B is a better cuase for raising taxes. Understand?

Gas Tax

I would consider myself to be a republican, and I do not see anything wrong with raising this tax. My biggest concern would be, will the state use it only for what it should be used for? If you think that this will kill you, join a carpool, ride a bus, try something different. You don't have to drive by yourself all the time.

Blame Game

I can accept that the citizenry does not want to pay increased taxes. I can accept that people want to see the fat trimmed from government. All that is done is complain... and complain... and blame... and blame. Start coming up with a SOLUTION. Which programs can be reasonably scaled back? And you cannot just answer whichever programs you do not like or feel are unimportant. You must look at the greater impact. Where should money come from if not from taxes? Give us alternatives and we will gladly listen.

And a 1 cent increase? Seriously? It has been over 20 years since our gas tax has been raised. Imagine if the tax truly tried to make up for inflation. Perhaps if we had kept up with it all along, we might have money for our roads now.

Dems shooting themselves in the foot

Kaine can kiss a political future goodbye!

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