Board Resisting Tax Plan For Transit

Members Question Fairness of Bill

A majority of Loudoun County supervisors say they are not interested in increasing local taxes and fees to fund transportation improvements in the region, a key provision in a plan passed by the General Assembly last week.

Under the bill approved by state legislators, Northern Virginia would get an additional $400 million a year for road and transit projects if local officials in Loudoun, Fairfax, Prince William and Arlington counties and in Alexandria voted for the various tax and fee increases.

Those measures include a 2 percent increase in the tax on rental cars and hotel rooms; a commercial property tax increase of 25 cents per $100 of assessed value; a "congestion relief fee" of 40 cents per $100 of assessed value on home sales, to be paid by the seller; and a $100 fee when obtaining a driver's license in Virginia for the first time, excluding teenagers.

Most Loudoun supervisors said the plan is a bad deal for the county. Several said Loudoun residents already are overtaxed, and some questioned whether Loudoun transportation projects would receive a fair share of the new regional money.

Of the more than $400 million in regional revenue, $50 million would go to Metro, $25 million to Virginia Railway Express, about $170 million to the Northern Virginia Transportation Authority and the rest directly to localities.

Supervisor Jim G. Burton (I-Blue Ridge) said there was no guarantee the regional authority would allocate money to the projects that Loudoun wants. He also noted that in the case of Hampton Roads, which also would be authorized to collect tax and fee revenue for transportation improvements, the legislation is more specific in identifying the projects that would be funded.

"If you look at the Hampton Roads package, there's specific amounts for specific projects. But if you look at Northern Virginia, it's unclear," Burton said.

"I quite honestly don't trust this authority," he added. "Loudoun has a very small voice, and that authority has a different agenda than what we have."

Supervisor Mick Staton Jr. (R-Sugarland Run) agreed.

"The idea that I'm supposed to raise taxes on my constituents and then give that money to an organization so they can spend it on citizens outside my county is a non-starter," Staton said.

In all, the bill would generate $1.5 billion a year for road and transit projects statewide, some from bonds that would be paid back out of the state's general fund. For Virginia residents outside Northern Virginia and Hampton Roads, the only financial impact would be a $10 increase in vehicle registration fees and higher fines for various driving violations.

Gov. Timothy M. Kaine (D) has said he would make significant changes to the plan, which was put together by Republican legislators, before sending it back to the General Assembly for review in April. Kaine argues that the payments from the general fund would divert money from such important programs as education and public safety. He also has said that the bill does not provide enough money for highway projects in rural parts of the state.