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Prince William may up vehicle fees
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Related Topics: Prince William County
Prince William County (Map, News) - Prince William County staff is recommending a $10 increase in its residents' auto registration fee to provide $3 million annually for road building.
County leaders are struggling to pay for the $300 million in road projects voters overwhelmingly approved in a 2006 bond initiative, socked by the rapid depreciation of property values that is set to swallow at least 14 percent of the tax base next fiscal year.
The registration fee currently costs $26.50 to $31.50 annually depending on the size of the vehicle.
County Executive Craig Gerhart urged the board this week to consider raising the fee because it would help compensate for millions of dollars in losses from the county's recordation taxes and declining property taxes.
"That's a revenue source that has a very nice connection between the people who use the roads and the purpose for which those funds are used," Gerhart said.
Without the increase, Gerhart said there's no other money to replace it.
"We absolutely have to look at it," Vice Chairman Martin Nohe, R-Coles, told The Examiner. "You need diversification of your tax base, and this would be an opportunity to implement a new revenue stream that we would have to otherwise take out of property taxes."
State lawmakers authorized the county to raise the fees as part of its massive transportation package to help local governments raise more money to pay for long-neglected road projects.
But board members, including Nohe, have criticized the state for requiring local boards to raise the funds instead of sending the money.
Eight other communities could impose the higher registration fee, but it is not clear, as the budget approaches, which boards will go forward with the increase.
The county staff has rejected talk of raising another commercial property tax approved by the General Assembly, saying that would put too much of a burden on businesses as the property tax rate could already climb by 28 percent.
Comments from Examiner Readers
7:04 AM MST on Sat., Dec. 22, 2007 re: "Prince William may up vehicle fees"
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Examiner Reader said:
Why stop at ten, the residents, have capital gains in their homes charge another twenty five dollars. If they say ouch, just say we have to cover cost, of illegals etc. You will see this love affair of illegals for hire end in one year.
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