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2006 SESSION

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SB 708 Transportation needs; provides several mechanisms for funding, report.

Introduced by: Charles R. Hawkins | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED SENATE:

Funding of transportation in the Commonwealth. Provides several mechanisms for funding transportation in the Commonwealth.

The bill would provide that all moneys credited to specified transportation-related funds shall be solely used for the purposes set forth therein relating to the funding and maintenance of highways (including access roads and bikeways adjacent thereto), public transportation, congestion mitigation, railways, seaports, and airports; making payments on bonds and obligations related to funding transportation projects; or making loans to finance transportation projects.

The bill would raise new revenues for transportation by (i) imposing an additional $200 fee upon certain convictions relating to violations of Virginia's driving laws; (ii) imposing annually additional fees on any driver with a driver's record having a balance of 8 or more demerit points; (iii) increasing motor vehicle registration fees by $10 for all vehicles and doubling the gross weight registration fee for vehicles weighing more than 10,000 pounds; (iv) increasing current liquidated damages for violations of any weight limit imposed under law or for violations of any weight limit included in a permit that has been issued; (v) imposing additional liquidated damages of $20 for every violation of any weight limit imposed under law or any weight limit included in a permit that has been issued; (vi) increasing the state grantor's tax to 30 cents for each $100 of value with the revenues from the increase in the tax distributed to the respective locality and required to be used for local or regional transportation projects; (vii) authorizing local governments to impose a local grantor's tax at the rate of 10 cents for each $100 of value with the revenues to be used for local or regional transportation projects; (viii) increasing the motor fuels tax on diesel fuel to 17.5 cents per gallon (the current rate of the motor fuels tax on gasoline and gasohol); (ix) imposing a 5% tax on motor fuels that would be based on the statewide average retail price of a gallon of self-serve unleaded regular gasoline over rolling six-month periods and that would be imposed at a cents per gallon rate; and (x) increasing the motor vehicle sales and use tax from 3% to 3.75%, phased-in over fiscal years 2007, 2008, and 2009. The bill would also dedicate for transportation purposes all insurance license tax revenues relating to automobile insurance policies.

The bill would allow individuals to apply for a refund of any motor fuels tax paid in excess of 17.5 cents per gallon. Individuals would apply for a refund when the cumulative amount of the refund would exceed $5.

SUMMARY AS INTRODUCED:

Funding of transportation in the Commonwealth.  Provides several mechanisms for funding the transportation needs of the Commonwealth. The bill provides that all moneys credited to specified transportation-related funds shall be solely used for the purposes set forth therein relating to the funding and maintenance of highways, public transportation, congestion mitigation, railways, seaports, and airports; making payments on bonds and obligations related to funding transportation projects; or making loans to finance transportation projects. Through revenues raised by the bill and the creation of new funds, the bill addresses the specific needs of ameliorating urban congestion, addressing rural transportation funds, and supporting further rail development in the Commonwealth. The bill establishes three new funds to focus on some of these needs.  Two of these funds, The Virginia Urban Congestion Relief Fund and the Virginia Rural Transportation Fund, will be administered by the Commonwealth Transportation Board, and the third fund, the Shortline Railway Preservation Fund, will be administered by the Department of Rail and Public Transportation.

The bill generates revenues for these new funds, for existing funds, and for local transportation needs from a variety of revenue sources.  The bill would raise vehicle registration fees by $10 for most vehicles and $20 for large passenger cars and pick-up or panel trucks; impose the retail sales and use tax on labor and service charges for vehicle maintenance and repair; increase the tax levied on diesel and alternative fuels to the same seventeen and one-half-cents currently levied on gasoline; impose an additional tax on gasoline, diesel, and alternative fuels based on a percentage of the statewide average retail price of gasoline; and would phase-in an increase of the motor vehicles sales tax.