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2/25/04-The House Finance Committee voted down the Senate’s $62.2 billion budget proposal by a 16-6 vote Feb. 25.
The Senate’s tax-raising plan proposed adding $3.2 billion to Gov. Mark Warner’s two-year, $59 billion budget proposal, with new taxes generating the revenue to support the increase.
SB635 called for pouring an additional $1.6 billion into transportation, with nearly $950 million allotted for highway construction. Revenue from increases in the fuel tax and other transportation-related levies accounted for the bulk of the new funds.
The bill also called for increasing the titling tax on motor vehicles from 3 percent to 4.5 percent; increasing motor vehicle registration fees by $10 annually; increasing the gasoline tax by 3 cents per gallon and the tax on diesel fuel by 4.5 cents per gallon; and imposing an additional 5.5 percent wholesale tax on gasoline and diesel fuel. The revenues from these increases would be dedicated to the Transportation Trust Fund.
The Senate proposal also would prohibit tolls on cars as a means of financing improvements on Interstate 81.
The Senate’s tax-raising plan proposed adding $3.2 billion to Gov. Mark Warner’s two-year, $59 billion budget proposal, with new taxes generating the revenue to support the increase.
SB635 called for pouring an additional $1.6 billion into transportation, with nearly $950 million allotted for highway construction. Revenue from increases in the fuel tax and other transportation-related levies accounted for the bulk of the new funds.
The bill also called for increasing the titling tax on motor vehicles from 3 percent to 4.5 percent; increasing motor vehicle registration fees by $10 annually; increasing the gasoline tax by 3 cents per gallon and the tax on diesel fuel by 4.5 cents per gallon; and imposing an additional 5.5 percent wholesale tax on gasoline and diesel fuel. The revenues from these increases would be dedicated to the Transportation Trust Fund.
The Senate proposal also would prohibit tolls on cars as a means of financing improvements on Interstate 81.