Inside The Tax Increase Numbers: The Laundry List Of What Will Be Taxed And By How MuchFeb 21, 2013
Here's the list of what will be taxed and by how much in the proposed "transportation tax increase" now before both chambers of the General Assembly. Not angry yet? Read on:
» A 3.5 percent wholesale sales tax paid by distributors would replace the current 17.5 cents per gallon flat tax on gasoline. The new tax, though, will be passed on to consumers, along with a 6 percent wholesale sales tax on diesel fuel.
» The 5 percent retail sales and use tax paid statewide on most purchases will increase to 6 percent in Northern Virginia and Hampton Roads, and to 5.3 percent in the rest of the state.
» A $100 annual fee will be levied on alternative fuel vehicles, including hybrids.
» The sales tax on the purchase of cars (new or used) will increase from 3 percent to 4 percent.
» In Northern Virginia, the tax on house sales will increase by 40 cents per hundred dollars. That's an extra $1,600 on the sale of a $400,000 home.
» Also in Northern Virginia, the occupancy tax for hotels will increase 2 percent.
» If Congress passes the Marketplace Equity Act (which requires online businesses to collect sales taxes) the proceeds will be distributed as follows: 55.55 percent for schools; 22.2 percent for local governments with no restrictions; and 22.2 percent for roads and transit.
» If Congress does not pass the Internet sales tax collections act, an additional 1.6 percent tax will be added to the wholesale gas tax.
» There is no guarantee that these new revenues will be spent entirely on transportation since the Senate, twice this session (including today) defeated a proposed constitutional amendment to lock away transportation funds from general fund spending. The Senate has defeated this needed reform for years.
» There is no guarantee that the General Assembly or a future governor won't come back for more tax increases.
» All of these tax increases are on top of the newly increased "fiscal cliff" tax increases by Congress and President Obama and pending local tax increases many Virginia jurisdictions are looking into, such as meals and property tax increases.
If all this isn't enough, there has not been a good faith effort to cut spending in other areas and reapportion it to transportation. Now are you angry?