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Kaine's plan would raise vehicle registration fees, titling tax
 
Monday, May 12, 2008 - 12:10 AM 
 
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Gov. Timothy M. Kaine's plan to close Virginia's $1 billion transportation funding gap will include a $10 increase in vehicle registration fees, and an increase in the state's auto titling tax from 3 percent to 4 percent.

General Assembly sources briefed on the plan said Kaine also will propose a 1-cent regional sales-tax increase in traffic-clogged Northern Virginia and Hampton Roads. Voters in those regions rejected such a levy in referenda in 2002.

Kaine will announce his plan at noon today at the South Portico of the State Capitol.

The governor will hold town hall-style meetings on the plan -- beginning tomorrow night in Northern Virginia and again Thursday in Hampton Roads -- before he calls legislators back to Richmond for a special session that begins June 23.

The package also will include a statewide increase in a tax people pay when they sell real estate, also known as the grantors tax. Dollars from that tax would largely remain in the regions where they are collected, and in the case of Northern Virginia could finance mass transit improvements.

The Kaine package also would do away with an optional income tax for Northern Virginia -- never imposed because of its political volatility. The optional tax was extended to the region as part of the last sweeping transportation fix under Gov. Gerald L. Baliles two decades ago.

Kaine, who briefed Democratic lawmakers last night in two conference calls -- one for the House, the other for the Senate -- stressed that his proposal is not the end of the conversation on transportation, but the beginning.

 

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