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email from Delegate LeMunyon (67th district)

Why I Voted for the Transportation Tax Bill

Dear Neighbor,

Yesterday, I voted for the House-Senate compromise
legislation, H.B. 2313, which raises certain taxes to fund transportation in Northern Virginia and throughout the state. The bill passed the House on a bipartisan vote of 60-40. It passed the Virginia Senate today on a vote of 25-15. Governor McDonnell has indicated he will sign the bill. House Speaker Bill Howell introduced the bill at the request of the Governor at the beginning of the 2013 General Assembly session.

I have always believed—and continue to believe—that raising taxes should be the last resort in public policy. I take no joy in telling you that with respect to transportation funding, we are at the last resort. But I believe enacting this imperfect legislation is better than any alternative to address Northern Virginia’s transportation problems.

While the bill is a little complex, the bottom line is that the average Northern Virginia family will pay about $15 to $20 more per month in taxes—mostly through a 1% sales tax increase—dedicated to transportation. The bill does not tax income, savings, or investment. The money is not being used to expand the size of government or create new entitlements. Most importantly, the bill is designed to raise and keep a substantial amount of transportation money in Northern Virginia, the majority of which must be spent only on projects that provide the “biggest bang for the buck” in reducing congestion. I assisted in drafting this provision in the bill, and I would have voted against the bill without it.

Most taxpayers, Republicans, Democrats, and Independents tell me this amount of money is worth it to reduce their commutes and make it home in time for family dinner, coach the sports team, or get to the school or church meeting. In fact, many people would actually save this amount or more by spending less on gasoline now wasted by idling in congestion.

During the last three years, Governor McDonnell and the General Assembly have worked diligently to reform a number of state government programs, including VDOT, hold the line on spending, and direct as much excess money to transportation as possible, while keeping the budget balanced. Virginia has also secured debt to fund transportation, up to the General Assembly’s self-imposed borrowing limit.

Much of the transportation construction now underway in Northern Virginia, especially in Western Fairfax and Eastern Loudoun Counties, is a result of this effort. We are accomplishing a lot, but much more progress is needed. Within the next four years, there will be little or no new construction money available from state resources for roads or mass transit improvements in Virginia because of requirements to pay for maintenance ahead of construction.

As we all know, current levels of maintenance funding are also inadequate, and many roads and neighborhood streets in our area have not been repaved for as long as 20 or 30 years. Our unfunded transportation maintenance and construction needs are estimated to be on the order of $1 billion to $1.5 billion annually statewide.

Working with the Governor, the General Assembly has scoured the budget for additional savings in programs that could be directed to transportation and we will continue to do so. But we have found nowhere near the needed amount of money to properly fund transportation.

Here is a summary of the transportation tax bill:

Statewide Transportation Needs—raises about $800 million/year for transportation

• Increases the portion of the existing 5.0% sales tax allocated to transportation;

• Increases the sales tax from 5.0 to 5.3% with additional funds from the 0.3% increase dedicated to transportation;

• Replaces the existing 17.5 cent per gallon retail gas tax with a 3.5% wholesale gas tax. At current gasoline prices, this results in a small tax cut, but would increase if gasoline prices continue to rise;

• Increases the tax on the sale of autos by 1.3% over time;

• Adds an additional $50 registration fee for alternative fuel vehicles in recognition that drivers of such vehicles pay less in gas tax;

• Applies most future sales taxes collected from Internet purchases to transportation— if Congress passes a law related to Internet sales taxes.

The Secretary of Transportation is committed to using $87 million of these new funds to redesign the I-66/Route 28 intersection, and widen Route 606 west of Dulles Airport. These are the two largest unfunded projects in our area at this time.

Northern Virginia’s Needs—raises about $350 million/year in addition to Northern Virginia’s share of funding from the statewide transportation accounts

• Increases the sales tax an additional 0.7% (on top of the new 5.3% statewide sales tax) to 6.0% in Northern Virginia, set aside for Northern Virginia’s transportation needs;

• Increases the “grantor’s tax” paid when a house is sold;

• Adds an additional 2% hotel tax to be paid primarily by visitors to our area.

In summary, this solution is not perfect. I know not everyone is happy about provisions in this legislation.

I proposed that the bill include reductions in the income tax and grocery food tax to offset some of the tax increases, but these were not agreed to. In the end, I carefully weighed the pros and cons, and voted according to what I believe is best for the people I represent.

I will carefully monitor implementation of this law to ensure that funds are spent in ways that offer you measurable improvements in your quality of life.

As always, I welcome your comments and suggestions. Thank you for the privilege of representing you in the Virginia House of Delegates.

Yours for Good Government,

Jim LeMunyon
Member, Virginia House of Delegates
67th District