Transportation Board in N.Va. Approves Plan To Raise Taxes

The Northern Virginia Transportation Authority last night passed the largest increase in transportation-spending in a generation, approving $300 million a year in new expenditures funded by a set of regional tax increases.

But even those who voted in favor did so without enthusiasm, saying they were raising local taxes to make up for the shortcomings of state government.

"The pain of acting is immediate; the pain of failing to act is in the future," said Chris Zimmerman (D), chairman of the authority and an Arlington County Board member.

"Today's problems, bad as they are, are nothing compared to the future," Zimmerman said. "Congestion, pollution, degradation of quality of life would be worse if we failed to act now."

Gov. Timothy M. Kaine (D) praised the approval of the regional tax increases. The vote "reflects the bipartisan consensus of this region's leadership to address this longstanding set of transportation challenges," he said in a statement.

Gerald E. Connolly (D), chairman of the Fairfax County Board of Supervisors, also praised the vote.

"Politics is the art of the possible, and at the end of the day, we have to make tough choices," Connolly said. "I choose to act."

Opposing the plan, which included seven votes on revenue measures, were Loudoun County's representative, Scott K. York (I), and Del. Jeffrey M. Frederick (R-Prince William). Frederick opposed all seven measures, and York voted no on five, approving increases in rental car and hotel taxes.

Earlier last night, several hundred politicians, activists and taxpayers filled the cafeteria at a Falls Church middle school. Some wore stickers reading "No tax hike," while other stickers read "After 20 years, it's time."

Many speakers complained that the state legislature had shirked its responsibility to pay for transportation.

Dennis Daugherty of Prince William County said the law establishing the NVTA was the state legislature's way of saying " 'You suckers, pay more taxes!' And we are saying 'Thank you for the opportunity.' "

But Dennis Dineen of Arlington said the regional taxes are a necessary investment in the region's future.

"Who wants to move to a place where you can't get anywhere within two hours?" he said.

The increases include a "congestion relief fee" that will raise the grantor's tax on the sale of a home by 40 cents per $100 of value. Drivers will pay an additional 1 percent tax on the value of new vehicles, $10 a year more in local registration fees, a $10 safety inspection fee and a 5 percent sales tax on auto repairs. Area hotel taxes and car-rental fees will increase by two percentage points.

Of the more than $300 million a year expected to be raised by the fees and taxes, 40 percent will be distributed to the region's nine jurisdictions to spend on projects of their choosing. The remaining money will be spent on regional priorities, with the first $75 million of that earmarked for Metro and Virginia Railway Express.

The authority has 14 voting members. They comprise the top elected official, or a designee, from each of the nine Northern Virginia jurisdictions, two members of the House of Delegates, one state senator and two people appointed by the governor. The authority also has two nonvoting members.

The setup of the authority is unusual in a state in which decisions -- particularly those involving taxes -- are made almost exclusively by directly elected state and local officials. Although most authority members are elected officials, they are not elected to this board and so are not directly accountable to anyone outside their jurisdictions. But because those members have to face voters somewhere, they are not immune from public sentiment.

Under NVTA rules, any tax increase must be approved by six of nine jurisdictions, representing at least two-thirds of the region's population.

The NVTA's taxing authority was the result of a last-minute compromise between the Republican-led General Assembly and Kaine, who signed the state's first transportation funding bill in 21 years.