1/26/2006New Virginia Governor Makes Motorists a Tax Target
Virginia Governor Tim Kaine is looking at motorists as a source of $4 billion in new tax revenue.
Virginia's newly sworn-in governor, Timothy M. Kaine (D) last week announced his plan to raise $4 billion in taxes and fees on motorists. The state government already enjoys a $1 billion budget surplus, but Kaine intends to draw new funds to double the current subsidy of mass transit options for those who do not drive on a regular basis. His extensive transportation proposal is also designed to reduce congestion by placing restrictions on private property owners in order to limit development.
If approved by the legislature, the plan is expected to raise around $1 billion annually over the next four years with the following increases:
- Increase of 2% in sales tax on vehicles worth $1,664,200,000
- Increase of 2.25% in tax on auto insurance premiums worth $1,042,700,000
- Increase in fines for minor and major traffic infractions worth $401,400,000
- Increase in vehicle registration fees worth $296,120,000
- Adding toll roads to the area, cost to motorists unknown