Statewide Revenue

House Bill 3202 raises new, dedicated statewide sources of revenue for transportation. Through a mix of bonds, new taxes and fees, and other revenue sources, more than $500 million in additional funds will be available each year for transportation maintenance and improvements.  Please click here (pdf) to see six year revenue projection.

Please click here to learn more about the impact of the new revenues on the Commonwealth Transportation Board’s Six-Year Improvement Program. The Six-Year Improvement Program outlines the planned funding allocations to rail, public transportation, and highway capacity projects around the Commonwealth.

Please click here to learn more about the proposed collection procedures for the statewide and regional taxes and fees. (Word, 105k)

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The statewide revenue sources for transportation maintenance authorized by the bill are as follows:

• $10 Registration Fee Increase
• Diesel Tax Equalization
• Higher Fines for Overweight Trucks
• 1 Cent of the State Recordation Tax

These funds are dedicated to the Highway Maintenance and Operating Fund.  They will help ease the maintenance shortfall.  Since VDOT is required by the Code of Virginia to pay for maintenance before construction, this will help address the obligation of construction funds to pay for maintenance.
Highway funds will be used to:

• Match and leverage federal funds for interstate, primary, secondary and urban construction
• Match and leverage local funds for revenue sharing projects
• Priority projects

The bill authorizes the issuance of $3 billion of bonds.  This money will help move existing projects to completion and address current needs.  The bill permanently dedicates one third of insurance premium taxes to pay debt.
These funds will be used as follows:

• Minimum of 20% for transit capital
• Minimum of 4.3% for Rail Enhancement Fund
• Maximum of 75.7% for highway construction

The bill also provides 2 cents of the state recordation tax for transit operation expenses.
In addition the bill dedicates two-thirds of the General Fund surplus to the Transportation Trust Fund.