Senate Majority Leader Richard Saslaw on Thursday pushed a long-shot proposal to replace the state’s court-banished transportation funding package with a series of new taxes, both regional and statewide.
The move was part of last-minute scramble to plug a gap for road-and-rail dollars left by the Virginia Supreme Court’s ruling last week that struck down a large part of the landmark 2007 transportation legislation as unconstitutional. The court ruled regional transportation authorities set up under the law cannot levy taxes because their members are not elected.
House Republicans, who would need to approve the plan, soured on the prospect of a statewide gas tax, among other increases. The House shot down a Saslaw proposal earlier this year that would have increased the fuel tax a cent a year for five years to pay down a growing highway maintenance deficit.
“That’s not going to fly,” said Speaker William Howell, R-Fredericksburg, of Saslaw’s proposal.
The plan would give Northern Virginia about $300 million in annual revenue next year derived through an increase in the sales tax, levies on home sales and a $5-per-day lodging tax, according to estimates.
Statewide, it would bring in $220 million next year though a gas and car sales tax. The Hampton Roads area would see at least $166 million in new transportation funding under Saslaw’s figures.
Saslaw told reporters Thursday that he would not agree to any rushed replacement to the transportation package, a further signal that lawmakers will need a special session to address the funding mess instead of finding a solution before Saturday’s deadline.
“We’re going to do it right this time,” Saslaw said. “If it gets done by Saturday, Monday, Tuesday, Wednesday, next months, two months, it’ll get done, but we’re not going to do something for the sake of doing something that doesn’t fix the problems.”
Tax time
In Northern Virginia, Saslaw’s proposal would:
» Impose a 0.5 percent retail sales and use tax.
» Add a 40-cent grantors tax.
» Raise a $5-per-day lodging tax.
Statewide, it would:
» Apply a gas tax in 1 percent yearly increments beginning next fiscal year and capped at 10 cents per gallon.
» Increase the motor vehicle sales tax by 0.5 percentage points to 3.5 percent.
