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2000 SESSION

008452448
SENATE BILL NO. 476
FLOOR AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by Senator Barry
on February 15, 2000)
(Patron Prior to Substitute--Senator Howell)
A BILL to amend and reenact §§ 58.1-1720, 58.1-1721, and 58.1-1724 of the Code of Virginia, relating to motor vehicle fuels sales tax in certain planning districts.

Be it enacted by the General Assembly of Virginia:

1. That §§ 58.1-1720, 58.1-1721, and 58.1-1724 of the Code of Virginia are amended and reenacted as follows:

§ 58.1-1720. Sales tax on fuel in certain transportation and planning districts.

A. There is hereby levied, in addition to all other taxes imposed on fuels subject to tax under Chapter 21 (§ 58.1-2100 et seq.) of this title, in every county or city which is a member of any transportation district in which a rapid heavy rail commuter mass transportation system operating on an exclusive right-of-way and a bus commuter mass transportation system are owned, operated or controlled, by an agency or a commission as defined in §15.1-1344 15.2-4502, or in any transportation district which is subject to §15.1-1357 (b) (6) 15.2-4515 C and which is contiguous to the Northern Virginia Transportation District, a sales tax of two percent of the retail price of such fuels sold within such county or city. As used in this section, "retail sale" means a sale to a consumer or to any person for any purpose other than resale.

B. In addition to the tax imposed under subsection A and all other taxes imposed on fuels subject to tax under Chapter 21 (§ 58.1-2100 et seq.), there is hereby levied an additional sales tax of two percent of the retail price of motor fuels sold within the Commonwealth, if approved in a referendum by a majority of the citizens voting on the question stated below. The referendum shall be held on November 7, 2000. The ballots shall be prepared, distributed and voted, and the results of the election shall be ascertained and certified, in the manner prescribed by § 24.2-684. The ballot used shall be printed to read as follows:

"Shall an additional sales tax of two percent of the retail price of motor fuels sold be levied in the Commonwealth with the proceeds collected to be used for such highway and transit and transportation improvements as determined by the Commonwealth Transportation Board."

[ ] Yes

[ ] No

If a majority of such voters approve, such two percent additional sales tax shall be imposed and any moneys collected attributable to such increase shall be deposited in the Transportation Trust Fund.

BC. The tax taxes imposed under this section shall be subject to the provisions of the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.), except that the exemption provided for motor vehicle fuels under § 58.1-609.13, and the bracket system provided in such act, shall not be applicable.

§ 58.1-1721. Reduction of local taxes.

In the first full fiscal year in which the tax is levied, the governing body of each county or city in which such tax is levied shall reduce the rate of its real estate tax, or its real estate and other locally levied taxes, in an amount that will reduce tax revenues in the following year by an amount equal to the amount which has been or would have been allocated by the local governing body to the county or city for rail and bus services but is, as a result of the imposition of this tax, paid by the Commission. As used in this section, "allocated" shall mean means the amount which a local governing body has agreed to pay or agrees would be an equitable share of the costs of rail and bus service to be attributed to its jurisdiction.

The amount of the tax reduction shall be calculated by subtracting the amount collected at the reduced rates from the amount which would have been collected at the tax rates in effect for the tax year immediately prior to the year in which the rates are reduced. Such reduced rate shall not be raised during the entire tax year for which the tax rate is reduced, but may be raised subsequently.

The provisions of this section shall not apply to any additional motor fuels sales tax imposed in accordance with subsections B and C of § 58.1-1720.

§ 58.1-1724. Disposition of tax revenues.

All A. Except as provided in subsection B, all taxes paid to the Commissioner pursuant to this article, after subtraction of the direct costs of administration by the Department, shall be deposited in a special fund entitled titled the "Special Fund Account of the Transportation District of......." The amounts deposited in the special fund shall be distributed monthly to the applicable transportation district commission of which the county or city is a member to be applied to the operating deficit, capital and debt service of the mass transit system of such district or, in the case of a transportation district subject to the provisions of § 15.1-1357 (b) (6) 15.2-4515 C, to be applied to and expended for any transportation purpose of such district. In the case of a jurisdiction which, after July 1, 1989, joins a transportation district which was established on or before January 1, 1986, and is also subject to § 15.1-1357 (b) (6) 15.2-4515 C, the funds collected from that jurisdiction shall be applied to and expended for any transportation purpose of such jurisdiction. The direct costs of administration shall be credited to the funds appropriated to the Department.

2. That the provisions of this act shall become effective January 1, 2001, if approved in the statewide referendum.