Senate Passes Income Tax for Transportation Bill

The Virginia State Senate has passed a bill that would allow local governments to collect a local income tax to fund transportation projects. 

Under the legislation, SB 1313, which is now awaiting review in the House of Delegates, local governments would be allowed to establish an income tax of up to 1 percent without approval from voters.

All Virginia senators representing the city of Alexandria voted in favor of the legislation. 

The bill would affect the counties of Arlington, Fairfax, Loudoun, and Prince William, and the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park. 

Current Virginia law dictates a jurisdiction’s residents must approve a local income tax in a referendum. The majority of Virginia localities, like Fairfax County, rely on road maintenance from the state, with the exception of some areas including Arlington County, Henrico County in Richmond and some cities in the Hampton Roads District.

Alexandria Mayor Bill Euille told WTOP that he would like the city to impose the tax, but he would want some discretion over how to use the resulting funds.

Fairfax Sen. Chap Petersen has been vocal in his opposition to the bill, which passed the senate in a 27-11 vote.

“This bill represents the worst possible deal for the Northern Virginia taxpayer,” Petersen said in a statement.

After Gov. Bob McDonnell’s $3.1 billion transportation funding package failed to the pass the Senate, Petersen worried this new legislation would be deemed the new fix to the state’s ongoing transportation problems.

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