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tation conditions . . . that, if allowed to continue unaddressed, could strangle our commerce and erode the quality of our lives.”
Gov. Baliles acknowledged that commission members “struggled over the issues . . . But, in the end, for the good of the commonwealth, each member approved the report —the recommendations were adopted unanimously.”
Beginning Sept. 15, the General Assembly will hold a special session to discuss the commission’s recommendations. Interviews with dozens of legislators around the state indicate the recommendations could be pared down.
The recommendations call for:
• A three-quarter-cent increase in the state sales tax, which is now four cents on the dollar.
• A 4-cent increase in the state gasoline tax, from 15 cents to 19 cents a gallon.
• A 2 percent increase in the motor vehicle sales tax, known as the “titling tax,” with the value of trade-in vehicles deducted from the purchase price. The value of trade-ins cannot be deducted for tax purposes under the current formula.
• The first-ever use of state bond issues to supplement other funding sources. The bonds include revenue bonds for projects and “pledge” bonds that would be repaid from designated revenue sources, such as the gasoline tax.
• The creation of a Virginia Transportation Board to assume broad authority over funding of all capital projects involving highways, airports and seaports.
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