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2004 SPECIAL SESSION I

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HB 5003 Tax reform; changes in provisions for sales & use, motor fuels taxes, motor veh. registra. fee, etc.

Introduced by: Robert D. Hull | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Education and Transportation Improvement Act of 2004. Reroutes one-half percent of the state sales and use tax from the Transportation Trust Fund and sends it back to localities for education, with half of the additional revenues generated thereby deposited into the At-Risk Student Academic Achievement Fund created by the bill, and the remaining one-half distributed to localities based on a set per pupil amount, based on the latest actual adjusted average daily membership, and used solely for public school capital projects. The At-Risk Student Academic Achievement Fund is to be used to provide noncompetitive grants to public school divisions to implement programs designed to (i) improve the academic achievement of at-risk public school students on the Standards of Learning assessments; (ii) decrease the rate of dropout among at-risk public school students; and (iii) increase the number of such students obtaining the advanced studies diploma.

The bill increases the tax on gasoline, diesel fuel, and alternative fuel by five and one-half cents per gallon, increases the motor carrier road tax by an equivalent of five and one-half cents per gallon of fuel used in the Commonwealth, and increases the alternative use fee for certain motor carriers from $100 to $150 (the fee is an alternative to paying the motor carrier road tax). Finally, the bill increases the motor vehicle registration fees by $10. The revenue generated is to be used for transportation purposes as required by existing law.

The bill also provides that the council of any city and the governing body of any county may increase the general retail sales and use taxes from one percent to one and one-half cent to provide revenue for the general fund of such city or county.


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