VA Governor and Senate Unveil Tax Increases for New Transportation Plan

Governor Kaine of Virginia released a plan to raise funds for his transportation initiative. The proposal will generate one billion dollars annually through a 2% increase in motor vehicle sales and use tax, a 2.25% increase in the auto insurance premium tax, and higher registration fees based on vehicle weight. The Senate, meanwhile, is looking into a plan which will increase vehicle registration fees, increase the tax on alternative fuels by 1.5%, and increase fuel taxes to 5%. (2006 VA S 708; 2006 VA S 725; 2006 VA S 726)

Posted on March 29, 2006