Va. governors changes to transportation package set for up or down vote this week in Veto Session of the legislature

Va. governors changes to transportation package set for up or down vote this week in Veto Session of the legislature

As is well known, the Virginia General Assembly passed a major transportation initiative when the regular session ended earlier this year, and last week Governor Bob McDonnell proposed a package of amendments designed to fine tune the bill. The changes will have to be approved by the legislature at the Veto Session that will convene April 3, with an up or down vote on the entire bill.

McDonnells amendments, which are likely to pass the legislature, would do the following:

Reduce the proposed vehicle title tax increase from 4.3 percent to 4.15 percent. After hearing from automobile dealers and constituents, the governor proposed this amendment to ensure the increase does not adversely impact the number of vehicles purchased, McDonnells office said in a statement.

Reduce the alternative fuel vehicles annual fee from $100 to $64.

Ensure transportation funds generated by the legislation are only used for transportation.

Correct and reduce the rate of taxation for the regional congestion relief fee.

Reduce the transient occupancy tax in Northern Virginia from 3 percent to 2 percent.

Address potential legal questions about regional taxation authority for Northern Virginia and Hampton Roads.

The amendments fit the governors goal of shifting transportation funding away from the gas tax and toward sales tax-based revenue sources. The final version of the bill would replace the current 17.5 cents per gallon gas tax with a 3.5 % wholesale tax on gasoline and a 6% wholesale tax on diesel fuel. Additionally, there will be increases in the states sales tax from 5 to 5.3% statewide and to 6% in Hampton Roads and Northern Virginia, with the increase dedicated to transportation purposes. The final version also dedicates revenues for the Commonwealth Mass Transit Fund and the Intercity Rail Operating and Capital Fund and dedicates increased revenues for the Commonwealth Transportation Fund.