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Kaine pitches highway program
Gov. Tim Kaine presents proposals to raise money for transportation maintenance and improvements; sets special legislative session for next month
Date published: 5/13/2008
BY CHELYEN DAVIS
RICHMOND --Gov. Tim Kaine unveiled a transportation plan yesterday that would raise about $1 billion a year for roads.
His proposal requires increasing the sales tax on cars, boosting the annual vehicle registration fee, increasing a tax on home sales and applying an extra sales tax in Northern Virginia and Hampton Roads.
Lawmakers will take up the proposal in a special session Kaine is calling June 23.
But House Republicans have already rejected the plan, saying a recession is no time to raise taxes.
And Senate Democrats, some of whom had pushed for a statewide gas tax increase, said they have concerns about the plan as well.
Kaine said he chose sources of revenue that are familiar to lawmakers, as they've approved all of those tax increases on a regional basis at some point in the past.
He chose not to propose a statewide increase in the gas tax, he said, because gas is a necessity of life for many people.
Kaine promised that all the money would be dedicated to transportation. He said his bill will include a provision that the revenue would expire if lawmakers (or governors) try to use it for something else.
"It's simple, it's sustainable, and it's statewide," Kaine said of his proposal. "We do have to act. The General Assembly has to act. Its reputation and our reputation are at stake."
But House Republicans disagree. They want to apply a variety of fees and taxes in Northern Virginia and Hampton Roads to revive the regional components of last year's transportation package; those two regional authorities were ruled unconstitutional by the state Supreme Court last year.
The House Republicans do not support any statewide tax increases.
"I don't see anything positive in the plan," House Majority Leader Del. Morgan Griffith, R-Salem, said. "It's all tax, tax and more tax I don't think you're going to see the governor's plan succeed, or anything close to it."
Senate Democrats released a statement yesterday saying they have "concerns" with Kaine's plan, but without elaborating on what those concerns are.
GOV. KAINE'S ROADS PLANTotal new transportation funding: $859 million in fiscal year 2009, increasing gradually to $1.08 billion in 2014.
Money would come from:
A 1 percent increase in motor vehicle sales and use tax statewide from 3 percent to 4 percent and rededicate another existing 1 percent of the tax to highway maintenance. Also boosting the yearly vehicle registration fee from $39 to $49. This would raise between $445 million to $512 million a year for maintenance.
A 25-cent increase per $100 in the real estate seller's (grantor) tax statewide. This would raise $142 million to $155 million a year for mass transit projects and economic development.
For Northern Virginia and Hampton Roads only:
A 1 percent increase in the sales tax, except for food and medication for regional projects. This would raise $306 million to $414 million a year for Northern Virginia and $168 million to $227 million for Hampton Roads. In Northern Virginia, $25 million would go toward the Virginia Railway Express for locomotives and additional service.
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Date published: 5/13/2008
Most recent reader comments:
Lots of whining in here, but few plans for paying for the
transportation infrastructure. Republican obstructionists are
making sure nothing ever gets done. I guess they won't be
satisfied until the entire state is gridlocked and all the bridges
collapse.
Raising Tax Kaine - That's all he knows
(posted by
WeimCity
, May 13, 2008 9:16 pm)
I am sick and tired of Gov Kaine always deciding to raise taxes, fees and every other way of taking more of my limited cash. I am grateful that the House is protecting us from his twisted attitude. Transportation spending was increased during the last session and yet he wants to take more $s without fixing VDOT. VDOT is broke - just look at 610. Throwing more money into VDOT is not a solution to VA traffic woes. There is nothing wrong with maintenance but Kaine''s solution needs flushing. Use what you have
Taxes or Traffic
(posted by
GaryShorts
, May 13, 2008 8:15 pm)
Pick one. Has anyone here driven in Virginia? Kaine's plan isn't ideal, but neither are the problems on the road. Let the General Assembly refine the proposal. An extra 10 bucks for registration isn't bad. And wasn't it no-car-tax Gilmore who wanted to be president? And blowinsmoke, do you even know how much gold costs and how much would be required to pave the roads with it? Gold wouldn't be a suitable driving surface.
Just like the user/abuser
(posted by
simonsez
, May 13, 2008 4:29 pm)
Fees that were reciended. Why do we continue to TAX the people of Virginia and let the transits go free.??? 1 penny on a gallon is nothing.....look at the pricing at each pump! I bet those that yell about 1 penny a gallon tax for each year of 3 years are the ones that stop at the nearest pump where gas is 5 cents more than across the street. Kain's proposals only tax US. The people of Virginia. How about trucks that carry garbage using our roads?? Wake up!!
Registration
(posted by
blowinsmoke
, May 13, 2008 2:47 pm)
$50 bucks a year for registration. That's a punch in the mouth for sure. These streets better be paved with gold!
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