Revenues and appropriations of State; changes to revenues collected and distribution. (SB1355)

Introduced By

Sen. Steve Newman (R-Forest) with support from co-patrons Sen. Jeff McWaters (R-Virginia Beach), Sen. Richard Stuart (R-Westmoreland), and Sen. Frank Wagner (R-Virginia Beach)

Description

Revenues and appropriations of the Commonwealth. Makes several changes to the revenues collected by the Commonwealth, and the distribution of such revenues, as follows:

The bill raises the registration fees for vehicles and trailers and designates these increased revenues for the Commonwealth Mass Transit Fund and the Intercity Passenger Rail Operating and Capital Fund.

The bill raises the state sales and use tax from 4% to 4.8% and designates the increased revenues for the Commonwealth Transportation Fund.

The bill establishes procedures for the collection of the state sales and use tax from remote sellers for sales made in the Commonwealth, contingent upon the federal government passing legislation authorizing such collection. In the event that such revenues are collected, a portion of the revenues will be allocated to the localities with a stipulation that some of the funds be used by the locality for transportation needs and a portion of the revenues will be deposited in the Transportation Trust Fund.

The bill eliminates the statewide taxation of gasoline and blended fuel containing gasoline under the Virginia Fuels Act but leaves the current tax in place for other types of motor fuels.

The bill raises the annual license fee for electric vehicles from $50 to $100 and imposes the fee on hybrid electric vehicles and alternative fuel vehicles.

The bill repeals the application of the local sales and use tax to the sale of certain fuels used for domestic consumption, and replaces the revenue for the localities that imposed the sales and use tax with a portion of the new revenues generated by the bill.

The bill also makes several technical changes related to the administration of these provisions.

The provisions of the bill are effective July 1, 2013, except that the changes in the distribution of Fuels Act revenues related to the repeal of the tax on gasoline is effective July 1, 2014.

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Outcome

History