Almost no one has read the fine print in the tax hike proposed by Senate Democrats (and which may well pass the Senate as I’m writing this). Most will just assume it does what MSM says it will, namely ” increase the gasoline tax and other levies to generate new money for Virginia’s transportation needs . . . with additional amounts generated through regional tax increases in Northern Virginia and Hampton Roads” (Roanoke Times, emphasis added). That is wrong; SB6009 does far more than that.
Buried in the fine print of the Senate Finance Committee substitute (the version that reached the floor) is a provision on “Imposition of additional state retail sales and use taxes in certain regions” (Section 58.1-603.3 - you’ll have to scroll down about a third of the way). Which “certain regions” you ask? Well, the bill is kind enough to define them:
There is hereby levied and imposed, in addition to all other taxes and fees now imposed by law, a general retail sales and use tax at the rate of one percent in any urban region of the Commonwealth that has at any time an aggregate of at least 8.5 million daily vehicle miles traveled in the area in accordance with the most recent written determinations of daily vehicle miles traveled by the Virginia Department of Transportation. Based solely on this requirement, the Tax Commissioner shall be responsible for making the written determination of whether an urban region has met such requirement.
Now, the bill defines “urban regions” as metropolitan planning organizations, which, from my quick research, covers just about the entire state. If your MPO has over 8.5 million daily vehicle miles traveled (DVMT), you’re getting hit with a sales tax hike - whether you like it or not.
Who gets to spend your money? Why, it’s the unelected Commonwealth Transportation Board:
Except as otherwise specifically provided by law, the net revenues generated and collected from the tax imposed under subsection B shall be allocated by the Commonwealth Transportation Board solely for transportation projects in the respective urban region that are included in the federally mandated Regional Transportation Plan approved by the metropolitan planning organization for the respective urban region (or any successive plan).
So what we have here is an automatic tax increase imposed in secret with the money to be spent by unelected officials.
Now, you, dear reader, may be thinking - but there is no way my MPO reaches the criteria (well, unless you live in NoVa or Hampton Roads, but you’re getting hit with the regional tax hike under this plan anyway). Well, based on the latest VDOT data, if you live in the following MPOs, you would be wrong. Residents of the following areas would be hit with a regional tax hike under the Senate Democrats’ bill:
- Richmond Area (Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent, Powhatan, and Richmond City): 30 million DVMT
- Fredericksburg Area (Fredericksburg, Spotsylvania, Stafford, King George, and Caroline): 11.6 million DVMT
- SWAC Area (Augusta, Bath, Highland, Rockbridge, Rockingham, Buena Vista, Harrisonburg, Lexington, Staunton and Waynesboro): 9.9 million DVMT
- Hampton Roads Area (the original 12 in the HRTA, plus Franklin, Gloucester, Southampton, and Surry
I say again, if you live in any of the above listed counties or cities, your sales tax will go up along with the statewide tax hikes - if Saslaw’s bill becomes law. Odds are, MSM and most of the legislators will be as surprised as you are.
This is no way to govern. As bad as it was before the Senate Finance Committee marked it up (and it was bad enough), this in infinitely worse - and a telling sign of what happens when legislators see a chance to hit up the taxpayer. To call this an outrage is an understatement.






June 25, 2008 at 4:59 pm
[...] Cross-posted to the right-wing liberal [...]
June 25, 2008 at 5:05 pm
[...] Cross-posted to the right-wing liberal [...]
June 25, 2008 at 5:22 pm
Ho-f!@#ing-ray.
June 25, 2008 at 5:38 pm
It passed the Senate 21-16:
http://hrblogs.typepad.com/the_shad_plank/2008/06/saslaw-got-21-v.html
June 25, 2008 at 6:54 pm
[...] First: Senate Finance Committee passes gas tax hike [...]
June 25, 2008 at 9:28 pm
[...] I noted earlier includes not only the well-publicized gas and grantor’s tax hikes, but also hidden regional sales tax hikes (Shad Plank; h/t Tim Watson, who first mentioned it in the comments of my previous [...]
June 25, 2008 at 9:30 pm
[...] I noted earlier includes not only the well-publicized gas and grantor’s tax hikes, but also hidden regional sales tax hikes (Shad Plank; h/t Tim Watson, who first mentioned it in the comments of my previous [...]
June 25, 2008 at 11:10 pm
The House needs to stop this… Not that Howell and Norment & co will any help.
June 25, 2008 at 11:15 pm
err… will BE OF ANY help.
June 26, 2008 at 8:46 am
[...] be more precise, the House Rules Committee) will take up the multifaceted tax increase (including the hidden, secret ones) passed by the Senate Democrats last night. Odds are, the bill will die, which would be a good [...]
June 27, 2008 at 7:43 am
[...] hiatus until July 9. That should give us plenty of time to explain to Virginians just how bad the Senate Democrats’ tax increase and the Howell-Hamilton-Albo tax increase are (in re the latter, Jim Bowden takes this thing apart [...]
July 2, 2008 at 11:16 am
[...] pass Saslaw’s bill Yes, you read that right, the Senate Democratic monstrosity that includes statewide and regional tax increases (including the Fredericksburg, Richmond, and SWAC areas), might actually pass the House of [...]
July 2, 2008 at 11:22 am
[...] pass Saslaw’s bill Yes, you read that right, the Senate Democratic monstrosity that includes statewide and regional tax increases (including the Fredericksburg, Richmond, and SWAC areas), might actually pass the House of [...]