Governor's Transportation Package

Tuesday, May 13, 2008

Virginia Gov. Timothy M. Kaine (D) offered a package of tax and fee increases yesterday that would raise about $1 billion a year to spend on roads and transit statewide. Lawmakers will consider the plan June 23. Here are the highlights:

· Increase the sales tax on cars from 3 to 4 percent and the yearly vehicle registration fee from $39 to $49. The money would pay for road maintenance.

· Raise the tax assessed on home sellers, now 10 cents per $100 of assessed value, by 25 cents and use the proceeds to create a "transportation change fund" to increase investment in transit, rail and innovative solutions to reduce traffic congestion.

· In Northern Virginia and Hampton Roads, increase the sales tax from 5 cents to 6 cents on the dollar, except on food and medicine. The money collected in Northern Virginia would go to the Northern Virginia Transportation Authority, which would decide how to spend it.

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