The tax increase fiasco continues to get worse with exposure….
Readers may recall Ken Cuccinelli’s somewhat confused statement on the bill. While he opposed the “massive tax hike,” he did add this: “If localities are given more authority to address their most urgent transportation needs, that would be an element that I strongly support…” (Lovettsville Lady).
Well, it turns out that element is non-existent. Here’s the bill’s new language on the hotel occupancy tax (emphasis added).
Transient Occupancy Tax in Northern Virginia
Section 58.1-1742. Northern Virginia transient occupancy tax.
In addition [to] all other fees and taxes imposed under law, there is hereby imposed an additional transient occupancy tax at the rate of three percent of the amount of the charge for the occupancy of any room or space occupied that is located in any county or city embraced by the Northern Virginia Transportation Authority established under section 15.2-4830.
The tax imposed under this section shall be imposed only for the occupancy of any room or space that is suitable or intended for occupancy by transients for dwelling, lodging, or sleeping purposes.
The revenue generated and collected from the tax shall be deposited by the Comptroller in the Northern Virginia Transportation Authority Fund established under section 15.2-4838.01 on at least a monthly basis.
In other words, this “local” tax is actually state imposed
, and the money will be spent by an unelected and unaccountable regional authority. Although the newest version of the bill still can’t be found online, in email correspondence, Delegate Marshall’s wife Catherine informed me that as far as she can tell all of the “local” tax increase UPDATE: I have seen the conference report version of the bill, and like the hotel occupancy tax, the grantors’ tax and sales tax are similarly Richmond-imposed and regionally shielded from the accountability of local voters. UPDATE: It appears the money will be sent back to the localities.
This, if anything, is actually worse than the referendum nonsense of 2002 or the HB3202 silliness as originally constructed. There is absolutely no increase in local taxing authority. It is all imposed from above.
Maddening…this thing must be voted down.