Supreme Court kills $300 million in taxes, fees

Virginia (Map, News) - The Virginia Supreme Court threw out a $300 million tax plan Friday, eliminating the first major infusion of new regional transportation funding in two decades.

The unanimous ruling said the General Assembly violated the Virginia Constitution by giving un-elected, regional panels in Northern Virginia and Hampton Roads the power to tax.

Justices scrapped seven taxes and fees that Northern Virginia residents and visitors have paid to the Northern Virginia Transportation Authority for two months, forcing state lawmakers to scramble to replace the funding in the last week of a contentious General Assembly session, which could prove too difficult.

The money was set to improve five Virginia Metro stations and a number of key roadways including Routes 1, Route 7 and Route 28, as well as the Fairfax County Parkway, Prince William County Parkway and Battlefield Parkway.

The 23-page opinion by Chief Justice S. Bernard Goodwyn says the "taxes and fees that NVTA has already imposed are null and void."

Authority leaders, who appeared unprepared for the rejection, could not say how much money had been collected or what would happen to those tax dollars.

"If payment of the regional taxes and fees is to be required by a general law, it is the prerogative and the function of the General Assembly, as provided by Article IV, Section 1 of the Constitution, to make that decision," Goodwyn wrote.

The Supreme Court's decision is the second major blow to Northern Virginia's transportation plans in just over a month, following the federal government's signal it would reject federal funding for the Dulles Metrorail expansion. Together, the moves throw into question how to build costly new roads and rail.

"We're looking at literally zeroing out new investment in transportation in the one area of the state that is an economic driver," Fairfax County Chairman Gerry Connolly said.

"Today's ruling is obviously a severe setback for Northern Virginia," said Chris Zimmerman, chairman of the Northern Virginia Transportation Authority.

The decision represents a significant victory for the tax plan's critics, including the Loudoun County Board of Supervisors and Del. Bob Marshall, R-Prince William, who challenged the authority in court, saying a nonelected body could not impose taxes under the state constitution.

"It goes to show that we were simply right on the issue that it was unconstitutional to have a nonelected body to be able to require and implement taxes on citizens," Loudoun County Chairman Scott York told The Examiner.

"Null and void"

The taxes and fees authorized by the Northern Virginia Transportation Authority:

Grantors tax 0.40 cents/$100

Auto rental tax 2% of rental rate

Hotel tax 2% of hotel rate

Safety inspection fee $10 annually

Auto repair sales tax 5% of labor charges

Regional auto registration fee $10 annually

Vehicle registration fee (one-time) 1% of auto value

dgenz@dcexaminer.com

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