Press Releases

House Democrats to Offer Statewide, Regional Transportation Solutions

Posted by Greg on Tuesday, July 08

FOR IMMEDIATE RELEASE
Tuesday, July 8, 2008

HOUSE DEMOCRATS TO OFFER STATEWIDE, REGIONAL TRANSPORTATION SOLUTIONS
~Amendment to reduce sales tax on food by 20%, remove gas tax increase ~
~ Compromise to generate $5.5 billion over 7 years ~

RICHMOND - House Democratic Leaders will offer a new, responsible solution to the transportation crisis when the General Assembly continues its special session on transportation, tomorrow, July 9th. In consultation with the Senate majority, House Democrats will propose amendments to remove the statewide and Hampton Roads regional gas tax increases while retaining all other sufficient revenue to address Virginia's transportation needs (SB6009). With the amendment, this transportation plan will generate approximately $5.5 billion over the next 7 years - nearly 80% of the plans original revenue.

The proposal must be allowed a fair and full hearing by the House Republican Leadership.

This plan addresses the statewide maintenance deficit, regional congestion in Hampton Roads and Northern Virginia, and reduces the sales tax on food by 20%. "We appreciate the work of the Senate of Virginia to advance a meaningful transportation solution," said House Minority Leader Ward Armstrong. "Now that Democrats have come together, it's time for our colleagues on the other side of the aisle to give this compromise a full and fair hearing."

"This will be the first opportunity in many years for the House to vote on a comprehensive, statewide transportation solution. Everyone is tired of the political games in Richmond. We are here with a serious proposal; it is time to show leadership," said Brian Moran, Chairman of the House Democratic Caucus.

Senate Majority Leader Dick Saslaw said, "This is a step forward. This action will bring us closer to a real transportation solution. If the House Republican leadership is serious about addressing our transportation needs, they will allow this bill to be debated, amended and voted on."

"House and Senate Democrats are unified in trying to solve our transportation problem. This plan invests significantly in public transportation, regional congestion relief, and highway maintenance, while reducing the sales tax on food. It's time for the House Republicans to act," said Mary Margaret Whipple, chair of the Senate Democratic Caucus.

The Amendment that will be presented for a vote tomorrow will:

  • Generate approximately $1.92 billion in statewide revenue, $2.28 billion for Northern Virginia, and $1.366 billion for Hampton Roads over the next 7 years.
  • Increase the auto titling tax by one half percent and increase the sales tax one quarter percent, while decreasing the sales tax on food by one half percent. The food tax cut will save Virginians about $80 million the first full year.
  • Increase the sales tax one half percent, the grantor's tax by 40 cents,  and the transient occupancy tax by $5 per night in the Northern Virginia Region. This funding will be provided to the Northern Virginia Transportation Authority as well as meet the necessary $50 million per year for Metro and $25 million per year for VRE.
  • Increase the sales tax by 1 percent in the Hampton Roads region.
  • Exempt food and drugs from all tax increases.

News reports have indicated that House Republican Leadership will cut off debate and prevent amendments that remove the gas tax from transportation funding legislation. The House Democratic Caucus has called on Republican leadership to allow amendments and compromise.

Source:  http://sfc.state.va.us/pdf/committee_meeting_presentations/June%2026/Trans%20bill%20adopted%20by%20Senate%20SB6009.pdf

# # #

 

 

View all Press Releases posts.