Monday, December 31, 2007
Editorial: Delay new taxes and fees in NOVA
Collection shouldn't begin until the Virginia Supreme Court rules on a constitutional question.
From the RoundTable blog
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Will the messy consequences of the transportation package the General Assembly passed during its last session never cease?
The legislation authorized the Northern Virginia Regional and Hampton Roads transportation authorities to raise money for roads in those traffic-clogged parts of the state. That meant imposing seven new taxes and fees, effective Jan. 1.
Opponents sued, arguing that giving the authorities, whose members are appointed and not elected, the power to levy taxes treads on the Virginia constitutional principle of taxation only with representation or consent.
A circuit court judge upheld the law's constitutionality in August. His decision was appealed to the Virginia Supreme Court, where it awaits a ruling.
In the meantime, the Hampton Roads authority wisely decided to delay collecting fees until April 1.
The Northern Virginia authority has not. So Tuesday, Northern Virginians can expect to begin paying higher motor vehicle rental fees, higher initial and annual vehicle registration fees and higher safety inspection fees, plus a 5 percent sales tax on auto repairs and a "congestion relief fee" that will raise the grantor's tax on a home sale from 10 cents to 50 cents per $100 of value. Hotel taxes and the cost of renting a car will go up as well, by 2 percent.
All this before the state Supreme Court has decided if Northern Virginia has the constitutional authority to impose these fees.
Why rush in? State lawmakers are almost certain in the 2008 session to revisit the bill, and address flaws such as the broadly applied abusive driver fees.
The Hampton Roads authority moved its collection date because it expects lawmakers to make changes.
Who knows? The General Assembly might even see fit to approve a resolution introduced by Del. Robert Marshall, R-Prince William County, that would ask voters to amend the state constitution to declare that no entities other than the commonwealth, county, city, town or regional governments have taxing power.
Marshall deserves a rap on the knuckles for offering up that proposal with no substantive way to fund the state transportation system. Marshall, who voted against the transportation package, is a plaintiff in a lawsuit challenging the authority's power.
Plan proponents told The Washington Post in August that they expect the state Supreme Court to agree with the circuit court decision. The high court is scheduled to hear appeals in early January.
But until the court rules, the Northern Virginia Transportation Authority should do as its wise counterpart in Hampton Roads has done, and delay collection of the new taxes and fees.
