Virginia Transportation Funding Deal

MOMENT OF SILENCE _ PRIUS TAX PASSED 2/23/2013
We have an apparent deal in VA, including a new "Prius Tax"!

I don't have all the details yet, but it sounds like Governor McDonnell got much of what he wanted! Gaso sales tax will be lowered to 3.5% on wholesale basis - about the lowest in the country, but indexed to inflation. The article below says the negotiating committee did zing us with a hybrid/alt fuel tax of $100/yr, which would be a huge surprise because it would be a stealth behind closed doors zinger...so I need confirmation. Localities have the authority to give tax relief to hybrids/special fuels but most do not. The extra funding needed for roads come from a sales tax increase, new hybrid tax, and they hope future internet sales tax. I will update this as details emerge.

Negotiators strike Va. transportation deal - The Washington Post

EDITS: I took out the 8 repub/2 dem make-up of the negotiating committee as the Wash Post said it is was 5 repub/5 dems (turns out my numbers were correct 8 repub/2 dem). The new Hybrid tax is confirmed. This is not official vote yet so stay tuned. Apparently the Gaso sales tax reduction sunsets in 2015 if the proposed internet sales tax does not happen. See my analysis on Post#5 of this thread.

 

Looks like we have a new "Prius tax" coming to VA!!

> I am told it will be up-and-down vote on the whole package. The hybrid/alt fuel tax cannot be removed the package. Fee=$100/yr or $1000 total if you hold car 10-years.

> My argument against the tax has been: Hybrids already pay extra taxes in Virginia via annual property taxes, given that hybrids cost about +$4000 to purchase. I estimate the hybrid "penalty" in VA is already about $500 - $1000 just in sales + property taxes. (Note that property taxes: we just get a bill in the mail - so I do not have a good way to estimate the hybrid property tax penalty for different vehilces).

> The other argument is: hybrids do not avoid $100 in taxes. A local enviro. group calculated that a Honda Civic Hybrid saves $18/yr in Fed fuel taxes. If we add in VA state fuel taxes, a Civic Hybrid saves maybe $30 on taxes at the pump. Thus the $100 surcharge is punitive.

> Keep in mind, as former Virginia resident Bob Wilson has noted, there are VA politics involved. The more populated and democrat-leaning Northern Virginia gets "beaten up" at the state level where repubs have most of the control. So the hidden agenda in this bill is repubs trying to hit Northern VA harder with the tax burden.

> If you live in Arlington County, you are protected from the higher property taxes and hybrid fees, because Arlington County gives tax relief to hybrids/alt fuels cars. Possibly more localities could do this in the future.

> I wrote or contacted 4 officials on issue - 2 dems and 2 repubs - not a single one acknowledged my letter or email so far. One of my emails to my local official (repub) was a few weeks before the issue became public. He did not get back to me, but the next thing I hear on the radio the local repubs got together and proposed this hybrid tax. So you can blame me? Hope not.

 

Did you have to put it that way? My tax money did go there. The new complex looks better than the White House and Capitol, just for a county.

 

Arlington gives tax relief (ie; incentive) for green cars, you are good!
Prius is a good buy for you due to this, but less so in other areas in VA.
I am OK because my 2006 is 6.5-yr old so I pay lower tax on it.
But this is one reason I did not go for a new PiP...can't imagine property tax $$, and as I said above, I cannot calculate property tax either...it's a secret formula.

 

I was so depressed about our new VA Prius tax today
Driving around town today I felt like VA Public Enemy#1, and like I got a punch in the gut. Alas, the Democrats stalled the bill passage to Saturday. The Dems want concessions on Medicaid before they allow the Prius Tax. So it looks like tomorrow Saturday we get it.

Va. transportation plan clears House, stalls in Senate

 

Yes I guess we are going to hear more of this.

Here is why VA is regrettable compared to OR- Oregon favors green cars and gives $1500 tax credit on purchase, even to hybrids, not to mention $2500-$7500 PHEV Federal tax credit. OR is not proposing to tax Prius hybrids (HEV). VA case is different, it is more punitive to tax hybrid HEV owners who do not get any tax credits, in fact hybrid drivers already face higher annual VA property taxes. Adding $100/yr onto this is a punch in the gut. Not only that, the avoided State + Federal tax due to a hybrid vs. non-hybrid is only about $30-40/yr.

Possibly this hurts Prius sales in VA. For some reason, I don't even think Toyota understands it, Prius has been very popular in VA, depsite the lack of state/fed incentives.

 

Moment of Silence Please

Virginia Enacts the first "Prius Tax"l

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