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VA Senate passes big tax increase, most Senators sell us out

Posted on 02/17/2006 11:24:40 AM PST by Gopher Broke

(This announcement is from the liberal Senate Republicans)

Senator Marty Williams ............

News Release .....

Virginia Senate Advances Transportation Finance Bill Part of a larger package of transportation initiatives including reform

Richmond, VA - Feb. 17, 2006 Senator Marty Williams (R- Newport News), Chairman of the Senate Transportation Committee, praised the Senate vote of 34 - 6 which advanced the financing of the Senate's plan to overhaul the state's ailing transportation system. Following Friday morning's vote, he issued the following statement:

Statement by Senator Williams

With the passage of SB708 the Senate of Virginia has advanced a common sense plan by which our transportation needs can be met. However, the money involved is only part of the solution. Virginians deserve to feel confident that money will be spent wisely, efficiently and for its rightful purpose is just important. A number of other Senate and House bills will accomplish just that.

In just the past few years VDOT has done a highly commendable job of more than doubling the rate at which projects are finished on time and at or under budget. Their performance now compares favorably with private industry. However there are plenty of improvements that still can be made. Under my legislation we will have a joint subcommittee with the House to continue a top to bottom review of VDOT operations as well as our overall transportation needs. The House proposes a permanent joint commission to oversee all the transportation agencies. Both are steps in the right direction.

Another Senate bill will expand the duties of the Office of Intermodal Transportation. This office will plan and advance solutions that coordinate our roadway, mass transit, and rail systems.

The Senate and House agree on the need to change the way members of the Commonwealth Transportation Board are selected. Our legislation will have them elected by the legislature from each of the construction districts. That will give the General assembly more oversight and responsibility for the Board's performance and increase their accountability to the public.

Yesterday my Senate Transportation Committee passed out several House measures to hold down construction costs by expanding design - build contract opportunities. Next we will closely examine expanding maintenance privatization and require the Transportation Commissioner to report each year plans and progress in privatization.

Another Senate bill sets in motion the process to amend the state Constitution to put transportation funds in a lock box. Citizens will be assured that transportation taxes are spent for transportation and nothing else.

There has been a growing awareness that our land use policies and our transportation planning need to go hand in hand. A number of Senate measures move in that direction. They would make local governments submit comprehensive plans, rezoning applications and subdivision plats to VDOT for review when it is anticipated they would have substantial impact on state roads. Another Senate measure requires fast-growing counties and cities to have ordinances regarding clustering of single family homes. And we will establish a joint subcommittee to study additional ways to integrate land use and transportation planning.

With all these reforms moving forward, some might wonder why we have to raise more revenues now. Why can't we wait until the reforms kick in? The answer is simple: we can't afford it! Transportation construction costs are spiraling upwards.

The hot real estate market we've seen has driven up land acquisition prices tremendously. Likewise, the costs of petroleum product has inflated the price of asphalt. And the growing Third World economies have put pressure on the price of steel.

These trends simply will not reverse themselves. Every day we delay we burden ourselves with higher costs in the future. Throwing money at the problem will not solve it. But not spending adequate funds wisely and in a timely fashion will only make matters worse.

Senate Bill 708

That brings us to why the passage of SB708 today was needed. We have to have reliable, sustainable revenue sources to be able to move people and goods throughout the state. It's not just a quality of life issue for people stuck in traffic. It's an economic necessity. SB708 provides the largest infusion of reliable and sustainable cash for road construction since the mid- 1980’s. The revenues come from dedicated sources which are assured to be on-going. To build major projects the state needs to know how much money is coming in down the road. One-time surpluses come and go and won't do the job.

The plan does not raid funds from sources traditionally spent on education, law enforcement and health care and shift them to road building. This reduces the chance that transportation funding will be forced to compete with other core services—a situation where transportation always loses.

This is a prudent, responsible pay-as-you-go approach. The plan does not rely on debt. There is none. This keeps transportation from further driving the Commonwealth’s spending for debt service—one of the fastest growing parts of the budget.

There is a connection between all the funds in the plan and transportation

The titling tax is based on vehicle purchase and the registration fees to ownership The fuels taxes are based on driving habits— essentially a user fee for roads The grantors tax is related to residential growth and the need for infrastructure and all of the new tax stays in the locality in which it is raised Abuser fees impact those who drive up the costs of patrolling our roads and maintaining safe driving conditions The vehicle registration fee is directly tied to the number of vehicles on the road Dedicating 100% of the existing tax on auto insurance premiums is also directly related to the number of vehicles on the road

Out-of-state drivers and truckers will begin to pay more of their fair share. Approximately 30% of the fuels taxes will be paid by non-residents. Also, a new compact with North Carolina will make possible tolls on I-85 and I-95 along the state border. These funds will come primarily from out-of-state drivers.

Finally, for those who feel strongly against this approach, they can "opt out" of the fuels tax. No one is forced to pay them. A rebate mechanism gives them and anyone else a mechanism to receive a 100% rebate of the money they paid in additional gasoline taxes.

Absolutely no one likes new or higher taxes. However, today's overwhelming Senate vote by members of both parties from all regions of the state show how that path is sometimes unavoidable. We are pursuing more efficiencies. We are putting a significant portion of this year's surplus into transportation. We are instituting new links between land use planing and transportation. We are pursuing public - private partnerships, privatization and tolls. But when all is said and done, we still need more funds to get the job done.

I am proud of my Senate colleagues, including all the Hampton Roads Senators, who had the vision to vote for this bill today. It is not the whole answer; but it is part of the solution.

The House sent many good ideas over to us that can be part of the solution and I expect we will embrace many of them. Likewise, I hope the House will recognize the good in this bill and support it as well.

Senator Marty Williams

Senator Williams represents the First Senatorial District which includes parts of Newport News and Hampton. He has served in the Senate since 1995 and is the current chairman of the Transportation Committee.

Senator Marty Williams

phone: (804) 698-7501


TOPICS: US: Virginia
KEYWORDS: kaine; rino; saddayforva; sb707; sb708; taxhike; taxincrease; vageneralassembly; virginia
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To: Gopher Broke

Hell. I hate seeing what my home state is becoming.

Tolls on 85 and 95 at the VA/NC border. Great. Once they're there, they'll NEVER go away. Ask anybody around here in Richmond how long it took to get the tolls pulled off I-95 between Richmond and Petersburg, *years* after the road had already been paid for.

Higher gas taxes, title taxes, all the other stuff, and this with a SURPLUS. You need more money for roads? Then do what I have to do every month when I'm juggling my payments and CUT SPENDING ON SOMETHING ELSE. Idiots.

}:-)4


21 posted on 02/17/2006 1:04:06 PM PST by Moose4 ("I will shoulder my musket and brandish my sword/In defense of this land and the word of the Lord")
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To: Gabz

I am not happy in the least.

Screwed again.


22 posted on 02/17/2006 1:12:44 PM PST by iceskater ("Words are, of course, the most powerful drug used by mankind." - Kipling)
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To: tanknetter

"I've discovered, however, that there are ways to load-balance my spending to negate the impacts of the tax increases, and in effect ensure that the state reaps no benefit from me, personally. Indeed, by the way I calculate it, making some sensible changes in my habits (like buying more items directly over the internet) actually makes me a net revenue loss for the state as a result of the increases."

You're a smart man. I do a lot of Internet shopping now too to escape sales taxes. This is the thing the tax hikers don't get. The more they raise taxes, the lower revenue intake there is because people ALWAYS find ways around having to pay higher taxes. As JFK, Reagan and W. Bush discovered, when you lower taxes you increase economic activity and thus revenues. Anyway, good for you.


23 posted on 02/17/2006 1:16:59 PM PST by MikeA (Cheney took 14 hours to notify the media. Gore took oil money to attack America while in Saudi.)
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To: iceskater
Screwed again.

That's an understatement.

My husband's first reaction was to ask how independent truckers are expected to stay in business with an increase in the tax on diesel.

And the increase on gasoline tax is beyond bizarre in my book. 5% of the average price per gallon in the Commonwealth, to be adujusted twice a year?????

That's all well and good if the per gallon price falls, but we haven't seen much of that happen of late.

These people are brain dead.

24 posted on 02/17/2006 1:30:37 PM PST by Gabz (Smoke gnatzies: small minds buzzing in you business........SWAT'EM)
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To: philsfan24

Well I'm definitely feeling the blues.

So from what I've read this is what to expect.

Title tax
Fuel tax
Grantor's tax
Toll tax

Did I miss anything


25 posted on 02/17/2006 1:39:34 PM PST by baltoga
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To: iceskater

The one good thing is that I believe the house is far more unified this time. This could get interesting.


26 posted on 02/17/2006 1:50:04 PM PST by Nick The Freeper
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To: Gopher Broke

Wow, does this mean they've already spent the entire surplus they built up from the last tax increase?


27 posted on 02/17/2006 1:54:01 PM PST by jpl ("We don't negotiate with terrorists, we put them out of business." - Scott McClellan)
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To: iceskater

WHAT!!!????
With a $Billion surplus they passed yet another giant tax hike?


28 posted on 02/17/2006 2:05:16 PM PST by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink.)
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To: R. Scott

Yep - it looks like we are all screwed again.
Feel free to use my letter posted earlier and contact your reps.


29 posted on 02/17/2006 2:08:46 PM PST by iceskater ("Words are, of course, the most powerful drug used by mankind." - Kipling)
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To: jpl

apparently so.


30 posted on 02/17/2006 2:09:13 PM PST by iceskater ("Words are, of course, the most powerful drug used by mankind." - Kipling)
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To: Nick The Freeper

I hope so. I'm not feeling very optimistic right now.


31 posted on 02/17/2006 2:09:50 PM PST by iceskater ("Words are, of course, the most powerful drug used by mankind." - Kipling)
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To: Gopher Broke

my cousin recently moved from NY to VA, but I see NYs ways are making it south.


32 posted on 02/17/2006 2:14:37 PM PST by oceanview
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To: oceanview

That is more true than you know.


33 posted on 02/17/2006 2:17:25 PM PST by iceskater ("Words are, of course, the most powerful drug used by mankind." - Kipling)
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To: Gopher Broke

["Absolutely no one likes new or higher taxes. However, today's overwhelming Senate vote by members of both parties from all regions of the state show how that path is sometimes unavoidable."]




Virginia doesn't have any Republicans in their State Senate.
They only have greedy politicians.
Throw the bums out. They lie. "Absolutely" someone does like new taxes, and that someone are the ones who want your money.

Throw the bums out.


34 posted on 02/17/2006 2:46:31 PM PST by the final gentleman
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To: iceskater

I'll be calling in the morning.


35 posted on 02/17/2006 3:21:59 PM PST by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink.)
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To: iceskater

Please, please, please run! I will work night & day for your campaign. I will even do phone banks.


36 posted on 02/17/2006 6:09:58 PM PST by Flora McDonald (got teufelhunden?)
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To: baltoga

sucker tax


37 posted on 02/17/2006 6:11:14 PM PST by Flora McDonald (got teufelhunden?)
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To: Flora McDonald

You are right about that.

Reading more into text I see two more additional taxes describe as fees:

Abuser fee
Registration fee



38 posted on 02/17/2006 8:02:33 PM PST by baltoga
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