Tax reprieve for Hampton Roads Motorists

The Hampton Roads Transportation Authority announced on Monday that there would be a 30-day delay in the collection of new regional taxes and fees.  I just read this welcome bit of news in an article in HamptonRoads.com entitled, “Residents get one-month reprieve from road taxes and fees“.  This comes ahead of the Authority’s plans to impose seven new taxes and fees in hopes of helping to finance approximately $9 billion in local transportation projects.  These new taxes, which include a higher gas tax, new taxes on vehicle sales, vehicle rentals and vehicular repairs, will go into effect on May 1.

This delay will benefit motorists primarily because they are the ones who will be paying the majority of these new taxes.  According to Arthur L. Collins, acting executive director of the Hampton Roads Transportation Authority has stated that in return for this increase in taxes, Hampton Roads residents will receive a transportation network that is viable.

So who will pay these new taxes?  Residents of Chesapeake, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginian Beach and Williamsburg as well as those living in the counties of Isle of Wight, James City and York.

How much are the new taxes?

• There will be a 2% increase on the sales tax for gasoline
• An increase in property sales tax.  Grantor’s tax rate will go up from 10 cents per $100 to 50 cents per $100.
• 2% tax on vehicle rentals
• 5% tax on labor for auto repair

The new fees are:

• A 10% increase on vehicle registration fees
• A 10% increase on the cost of annual vehicle inspection fees
• An initial titling fee amounting to 1% of the value of the vehicle

If you would like to read this article in its entirety, please click the link below.

“Residents get one-month reprieve from road taxes and fees“.