HB2704: Retail sales and use tax; portion dedicated for transportation.

Chief Patron

Del. Tim Hugo (R-40)

Status

Bill is Dead

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Summary

Sales and use tax; portion dedicated for transportation.  Dedicates the revenue generated by a 0.50 percent sales and use tax, all insurance license tax revenues, and state recordation tax revenues not already dedicated for transportation projects in each highway construction district throughout the Commonwealth on a pro rata basis pursuant to the percentage of the total state sales and use tax collected in the localities in each such district. The bill also creates a transportation program for each highway construction district (similar to the Northern Virginia Transportation Program) as the means by which the revenues are distributed. In addition, the revenues may be used to issue bonds annually with a face value up to two-thirds of the amount of revenue estimated to be dedicated for each respective fiscal year, with the bond proceeds distributed to each transportation program on the same pro rata basis. For all the transportation programs other than those for Northern Virginia and Hampton Roads, the Commonwealth Transportation Board shall determine the transportation projects to be funded. The transportation projects to be funded in Northern Virginia shall be as determined by the Northern Virginia Transportation Authority. The transportation projects to be funded in Hampton Roads shall be as determined by the Hampton Roads Metropolitan Planning Organization with the advice and consent of the members of the House Appropriations and Senate Finance Committees residing in Planning District 23.    

The bill also requires that, from the Commonwealth's current share of the state sales and use tax, an amount equivalent to the revenue generated by a 0.25 percent sales and use tax on sales from the Counties of Arlington and Fairfax and the Cities of Alexandria, Fairfax, and Falls Church shall be dedicated for use by the Washington Metropolitan Area Transit Authority (WMATA), as may be provided by federal law for the payment of certain federal funds to WMATA and only at such time as the federal law is enacted.

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