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2013 SESSION

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HB 2313 Revenues and appropriations of State; changes to revenues collected and distribution, report.

Introduced by: William J. Howell | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Revenues and appropriations primarily for transportation. Makes several changes to the revenues collected by the Commonwealth, and the distribution of such revenues, primarily for the benefit of transportation. The changes are as follows:

The bill eliminates the $0.175 per gallon tax on motor fuels, and replaces it with a percentage-based tax of 3.5% for gasoline and 6% for diesel fuel. The bill provides for a refund of an amount equal to a 2.5% tax paid on diesel fuel for passenger cars, pickup or panel trucks, and trucks having a gross vehicle weight rating of 10,000 pounds or less.

The bill imposes a $64 annual registration fee on hybrid electric motor vehicles, alternative fuel vehicles, and electric motor vehicles. Current law imposes a $50 fee on electric motor vehicles only. The revenues are designated for the Highway Maintenance and Operating Fund.

The bill raises the state sales and use tax across the Commonwealth from 4% to 4.3% and designates the increased revenues for the Highway Maintenance and Operating Fund, the Intercity Passenger Rail Operating and Capital Fund, and the Commonwealth Mass Transit Fund.

The bill establishes procedures for the collection of the state sales and use tax from retail dealers located outside Virginia for sales made into 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 localities for education, a portion will be allocated to 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. A portion will also be used to reimburse localities that currently impose a retail sales tax on the sale of certain fuels used for domestic consumption, as the bill also repeals the authority to impose such tax. If the federal government does not pass legislation authorizing the Commonwealth and other states to collect sales taxes from retail dealers located outside the respective state by January 1, 2015, then the motor fuels tax imposed on gasoline will be raised from 3.5% to 5.1% (the motor fuels tax on diesel fuel will remain at 6%, but the diesel fuel refund for passenger cars, pickup or panel trucks, and trucks weighing less than 10,000 pounds will be in an amount equal to a 0.9% tax paid). If the federal government passes such legislation after January 1, 2015, the rate of tax on gasoline will revert to 3.5%.

The bill amends the tax on the sale of motor vehicles (the "titling tax"). Currently, the titling tax is 3%. A new rate of 4.15% will be phased in over four years.

The bill increases the share of existing general sales and use tax revenues used for transportation from a 0.50% sales and use tax to a 0.675% sales and use tax, phased in over four years. The additional allocation will be deposited into the Highway Maintenance and Operating Fund. The bill also allocates the revenues from an existing 0.125% sales and use tax to public education.

The bill imposes additional state taxes and a fee in Planning Districts meeting certain population, motor vehicle registration, and transit ridership criteria. The additional taxes and fee are a retail sales tax of 0.70%, a 2.1% tax on wholesale distributors of motor fuels, a 2.0% transient occupancy tax, and a fee on grantors of real property equal to $0.15 per $100 of the value of the real property sold by such persons. The transient occupancy tax and grantor's fee currently would apply only in the Northern Virginia Planning District, and the tax on wholesale distributors of motor fuels currently would apply only in the Hampton Roads Planning District (under current law, the same tax on wholesale distributors is imposed in the Northern Virginia Plannning District). The retail sales tax currenty would apply in both the Northern Virginia and Hampton Roads Planning Districts. The additional revenues generated in the Northern Virginia Planning District are deposited into a Northern Virginia Transportation Authority Fund, with 30% of the funds being distributed to the member localities for use on transportation projects, and the remainder to be used for regional transportation projects. The additional revenues generated in the Hampton Roads Planning District are deposited into a Hampton Roads Construction Fund to be used soley for new construction projects on new or existing roads, bridges, and tunnels, as approved by the Hampton Roads Transportation Planning Organization.

The 0.70% state sales and use taxes in Planning Districts are in addition to the 0.3% state sales and use tax increase that applies throughout the Commonwealth.

Of the increased revenues in the Highway Maintenance and Operating Fund, $100 million in fiscal years 2014, 2015, and 2016 will be dedicated to Phase II of the Dulles Metrorail Extension Project, subject to certain conditions. Beginning in fiscal year 2020, $20 million dollars from the Highway Maintenance and Operating Fund will be deposited into the Route 58 Corridor Development Fund.

The bill prohibits tolling on Interstate 95 south of Fredericksburg without prior approval of the General Assembly.

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

SUMMARY AS PASSED:

Revenues and appropriations primarily for transportation. Makes several changes to the revenues collected by the Commonwealth, and the distribution of such revenues, primarily for the benefit of transportation. The changes are as follows:

The bill eliminates the $0.175 per gallon tax on motor fuels, and replaces it with a percentage-based tax of 3.5% for gasoline and 6% for diesel fuel. The bill provides for a refund of an amount equal to a 2.5% tax paid on diesel fuel for vehicles having a gross vehicle weight rating of 10,000 pounds or less.

The bill imposes a $100 annual registration fee on hybrid vehicles, alternative fuel vehicles, and electric motor vehicles. Current law imposes a $50 fee on electric motor vehicles. The revenues are designated for the Highway Maintenance and Operating Fund.

The bill raises the state sales and use tax across the Commonwealth from 4% to 4.3% and designates the increased revenues for the Highway Maintenance and Operating Fund, the Intercity Passenger Rail Operating and Capital Fund, and the Commonwealth Mass Transit Fund.

The bill establishes procedures for the collection of the state sales and use tax from retail dealers located outside Virginia 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 localities for education, a portion will be allocated to 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. A portion will also be used to reimburse localities that currently impose a retail sales tax on the sale of certain fuels used for domestic consumption, as the bill also repeals the authority to impose such tax. If the federal government does not pass legislation authorizing the Commonwealth and other states to collect sales taxes from retail dealers located outside the state by January 1, 2015, then the motor fuels tax imposed on gasoline will be raised from 3.5% to 5.1% (the motor fuels tax on diesel fuel will remain at 6%, with eligibility for a 0.9% refund for vehicles weighing less than 10,000 pounds). If the federal government passes such legislation after January 1, 2015, the rate of tax on gasoline will revert to 3.5%.

The bill amends the tax on the sale of motor vehicles (the "titling tax"). Currently, the sales tax on motor vehicles is 3%. A new rate of 4.3% will be phased in over four years.

The bill increases the share of existing general sales and use tax revenues used for transportation from 0.50% to 0.675%, phased in over four years. The additional allocation will be deposited into the Highway Maintenance and Operating Fund. The bill also allocates an additional 0.125% of existing general sales and use tax revenues to public education.

The bill generates additional revenues in the Hampton Roads and Northern Virginia Regions. In Hampton Roads, an additional state sales tax of 0.70%, and an additional 2.1% state tax on wholesale distributors of motor fuels, is imposed in the localities that comprise the Hampton Roads Transportation Planning Organization. These additional revenues are deposited into a Hampton Roads Transportation Fund, to be used for regional road construction projects, to be determined by the Hampton Roads Transportation Planning Organization. In Northern Virginia, there is imposed an additional state sales tax of 0.70%, an additional 3.0% state transient occupancy tax, and an additional state recordation fee equal to $0.25 per $100 of the value of the real property for which the deed, instrument, or writing is being recorded. The additional revenues are deposited into a Northern Virginia Transportation Authority Fund, with 30% of the funds being distributed to the member localities for use on transportation projects, and the remainder to be used for regional transportation projects.

The 0.70% state sales and use taxes in Northern Virginia and Hampton Roads are in addition to the 0.3% state sales and use tax increase that applies throughout the Commonwealth.

Of the increased revenues in the Highway Maintenance and Operating Fund, $100 million in fiscal years 2014, 2015, and 2016 will be dedicated to Phase II of the Dulles Metrorail Extension Project, subject to certain conditions. Beginning in fiscal year 2020, $20 million dollars from the Highway Maintenance and Operating Fund will be deposited into the Route 58 Corridor Development Fund.

The bill prohibits tolling on Interstate 95 south of Fredericksburg without prior approval of the General Assembly.

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

SUMMARY AS PASSED HOUSE:

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 eliminates the tax on motor fuels, except for diesel fuel. The bill provides for a refund of taxes paid on diesel fuel for vehicles having a gross vehicle weight rating of 10,000 pounds or less. 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 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 bill prohibits the Department of Transportation from expending any revenues on any program or project that implements tolling on Interstate 95 south of the City of Fredericksburg.

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.

SUMMARY AS INTRODUCED:

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.