Critics say auto repair tax could hamper economy

Published July 12, 2007 4:00am ET



Critics of a proposed 5 percent tax on vehicle repairs warn that the measure could lead to other levies that would damage Northern Virginia’s robust economy.

Virginia, like most states, imposes a sales tax on goods, but it traditionally has not imposed taxes on services. The tax on repairs, if approved tonight by the Northern Virginia Transportation Authority, would be an exception to that approach and, critics say, the first step to more taxes on services.

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