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Virginia Tax Hikes Could Be Bigger in NOVA

8:54 PM, Feb 21, 2013   |    comments
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(WUSA9) -- While most of the state would raise its sales tax from 5% to 5.3%, it would go up 6% in Hampton Roads and in Northern Virginia, which includes Loudoun, and Prince William, counties and everything North of there. But that extra money would stay in Northern Virginia.

"What's good about the regional component is that every penny raised in Northern Virginia stays in Northern Virginia," said Senator Janet Howell. She and Delegate Dave Albo were the two Northern Virginia lawmakers on the conference committee assigned to hammer out a transportation funding plan.

Albo calls it monumental compromise. 

"We've been in this mortal fight for the past 20 years.

I credit the Democrats for agreeing to abandon their absolute stance that the general fund could not be touched," said Albo, who also credited fellow Republicans for agreeing to raise taxes.

Statewide, the gas tax will decrease and shift to a wholesale percentage tax on to rise with inflation... plus owners of alternative fuel vehicles will pay a yearly $100 fee. The sales tax on cars would go up from 3% to 4%.
In Northern Virginia, in addition to a higher sales tax, there would be a 3 percent hotel tax, and an increase in real estate sales taxes. Too much for some Republicans.
Del. Bob Marshall, (R) Manassas, said, "If you sell a home, you're going to pay $2000 more, unless you move to Fauquier County. Northern Virginians are getting it six days until Sunday."

But, those Northern Virginia tax collections will add up to $350 million, money Albo says will be guaranteed to go for desperately needed Northern Virginia transportation construction projects.

Also says many people, even lawmakers, do not realize how broke the state is and that there is no money for maintenance. 

"If people are wondering why their secondary road hasn't been paved, or why there are potholes in Old Keene Mill Road in my neighborhood, it's because there is no money to do it. We don't even have the money to hang up a new traffic light in the state," said Albo.

The Senate and House of Delegates could vote as early as Friday on the plan. 

Even though Republican Governor Bob McDonnell supports the plan, Attorney General Ken Cuccinelli does not and the vote is expected to be close in the republican-controlled House of Delegates. The General Assembly is scheduled to adjourn on Saturday, but it could extend the session if needed.

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