HB6026: Transportation; provides statewide and regional transportation funding by increasing certain taxes.

Chief Patron

Del. Ward Armstrong (D-10)

Ward Armstrong (D-10)
Martinsville, VA
Served: 1992–

Progress

	Introduced
	Passed Committee
	Passed House
	Passed Senate
	Signed by Governor
	Became Law

Status

06/23/2008: In Rules Committee

View Entire History

Summary

Transportation funding and reform.  Provides statewide and regional transportation funding by (i) increasing, in phases, the motor vehicle titling tax from three to four percent statewide, (ii) increasing motor vehicle registration fees on cars, motorcycles, and heavy trucks by $10 statewide, (iii) increasing the grantor’s tax by $0.25 per $100 of value statewide, and (iv) establishing an additional one percent state sales and use tax in certain urban regions of the Commonwealth.  The additional state sales and use tax would be imposed in any urban region of the Commonwealth that has at any time (i) a population of at least 1.5 million according to the most recent United States decennial census of population, and (ii) an aggregate of at least 35 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.  An “urban region” is defined under the bill as collectively the Commonwealth’s counties and cities wholly embraced within a metropolitan planning area.

The bill would make several changes to the administration and distribution of transportation funds.  The bill would provide dedicated funding for transportation improvements in urban development areas.  The bill would remove the requirement for municipalities to contribute the local funds for construction projects if they take over their road construction program.  The bill would also clarify the ability of local governments to use their secondary or urban highway construction funding for transit projects.

Revenues generated by the one percent increase in the motor vehicle titling tax and the $10 increase in motor vehicle registration fees would be deposited into the Highway Maintenance and Operating Fund. The bill would also provide that the revenues generated by the current three percent titling tax on motor vehicles and the $35 minimum titling tax would be deposited into the Highway Maintenance and Operating Fund.

Revenues generated by the increase in the grantor’s tax would be deposited into the Transportation Change Fund to be used solely for mass transit and other transportation projects.  Except as otherwise specifically provided, revenues generated by the additional state sales and use tax in any urban region would be used solely for transportation projects included in the federally mandated regional transportation plan approved by the metropolitan planning organization for the urban region.  The bill delineates certain transportation projects to be funded in Hampton Roads and Northern Virginia from the revenues generated by the additional state sales and use tax in the respective urban regions in the Hampton Roads and Northern Virginia metropolitan planning areas.

The bill repeals the current authorization granted to certain counties and cities to impose a local income tax.