"We Cannot Afford to Stand Still"*
In remarks today to local government officials, state legislators and business organizations from Virginia's Urban Crescent, State Senator John Watkins outlined a proposal that would generate $734 million per year in new sustainable transportation revenue and grow in future years.
The proposal applies Virginia's 5% sales tax to the price of gasoline at the rack or wholesale level. Revenue would be distributed as follows:
•Highway Maintenance (3%) $440.2 million
•Transportation Construction Trust Fund (1%) 146.7 million
•Local Governments (0.66%) 97.8 million
•Rail Operation Fund (0.34%) 48.9 million
Total $733.6 million
The proposal also includes a $102 annual assessment on electric/hybrid vehicles to offset the fact they pay no or significantly less gas tax(es).
Local government funds would be sent back to the point of sale. Rail Operation dollars would be used to replace the current AMTRAK intercity (Lynchburg/Newport News/Norfolk) rail subsidy that expires in 2013.
An estimated 30% of the fuel assessment ($220 million) will be paid by out-of-state vehicles. About $500 million more will be offset by lower income tax rates for lower income brackets and the elimination of transportation-related tax credits and sales tax exemptions.
For more details including projected revenue growth and amount of local revenue projected for Northern Virginia and other areas, click here.
*Senator John Watkins (R-10th District: Powhatan, Part of Chesterfield & Richmond City)
Virginia's Urban Crescent Mayors & Chairs and Chambers of Commerce Joint Meeting
November 16, 2012