News and Notes from the Virginia General Assembly
Points of Contact: Ira Agricola, Senior Vice President &
Candace Reid, Manager, Governmental Affairs
Representing: Hampton Roads Chamber of Commerce &
Greater Williamsburg Chamber &Tourism Alliance
Tuesday, February 2, 2010
No portion of this communication may be retransmitted or reproduced without the expressed permission of the
Hampton Roads Chamber of Commerce
HB 374 (Cosgrove R-78th) – This bill delays payment of cash proffers from the time the building permit is issued to the time the final inspection is complete and a certificate of occupancy issued. The bill was reported on January 22nd from Counties, Cities and Towns Committee in the House. The Chamber SUPPORTS the measure.
While most political observers see an early fall special session called to focus on transportation funding; there are a number of transportation bills under consideration. These bills include:
HB 230 (Watts D-39th) – changes the allocation of construction funds for primary roads and interstate highways to 90% of allocation to be determined by a ratio of vehicle – miles traveled divided by the primary road lane mileage. The bill also increases the motor fuels tax by 10 cents per gallon, minus 1 cent for each 20 cents that the average price of gas exceeds $3 per gallon.
HB 269 (Englin D-45th) – increases state sales tax on motor fuel in Northern Virginia from 2.1 to 4.2.
HB 756 (Stolle R-83rd, Oder R-94th) – Requires 80% of offshore royalties paid to Commonwealth to go to Transportation Trust Fund.
HB 805 (Poindexter R-9th) – 80% of royalties of offshore natural gas and oil drilling to Transportation Trust Fund with remaining 20% to no-petroleum based fuels.
HB 900 (Comstock R-34th) – 80% of royalties to Transportation Trust Fund, 20% to clean up Chesapeake Bay.
HB 970 (Rust R-86th) – increases to 75% the amount of General Fund surplus designated to Transportation Trust Fund.
HB 971 (Rust R-86th) – imposes 1% tax at distributor level. Funds go to highway maintenance. Increases state sales tax in Northern Virginia by 0.5% and imposes a regional fee on the recordation of deeds.
HB 1047 (Kory D-38th) – increases transit by 4.3%.
HB 1059 (Marshall R-13th) – authorizes CTB to issue bonds not to exceed $4 billion with bonds paid by tolls, fares or fees.
HB 1061 (Marshall R-13th) – authorizes general obligation bonds in an amount not to exceed $4 billion to finance capital transportation projects.
HB 1153 (Scott-D-53rd) – converts 17.5 cents per gallon excise tax to percentage rates.
SB 114 (Petersen D-34th) – ties the fuel tax to the fuel efficiency of motor vehicles.
SB 343 (Hanger R-24th) – adjusts fuels taxes each year by April 1 by the percentage increase in the Corporate Average Fuel Economy Figure.
SB 115 (Petersen D-34th) – authorizes city and county to impose a 1% surcharge on the retail price of motor fuels sold at retail.
SB 132 (Obenshain R-26th) – increases general fund revenue for transportation from 0.5 to 1%.
SB 164 (Edwards D-21st) – increases revenue for transportation by increasing vehicle sales and use tax by one-half percent, motor vehicle rental tax by 1 percent and by imposing a 5% tax at the wholesale level on gasoline.
SB 223 (Barker D-39th) – replaces current fuels tax with wholesale price.
SB 600 (Wagner R-7th) – increases general fund surplus designated to Transportation Trust Fund.
SB 601 (Wagner R-7th) - requires 80% of any revenues and royalties paid to Commonwealth as a result of offshore natural gas and oil drilling be deposited to the Transportation Trust Fund.
Some Important Dates
January 22 Deadline to introduce bills
February 16 Deadline to consider bills in both chambers
March 8 Deadline for committee action on legislation
March 13 Adjournment
The Chamber communicated with Governor McDonnell’s staff to confirm our position to retain the “Dealer Discount.” The Dealer Discount is a fee that partially offsets the cost of collecting the Commonwealth’s sales tax.
HB 614 (Purkey R-82nd) raises taxes on Virginia businesses, primarily manufacturers, by $30 million annually. This bill is the Tax Department’s annual IRS conformity/de-conformity bill – normally a bill that is not controversial.
The controversial aspect of this year’s bill is that it eliminates a key deduction available to manufacturers (Section 199 of the Internal Revenue Code.)
We respectfully OPPOSE the loss of this deduction and will work to communicate the position of the Chamber to the appropriate members of the legislature.
Last week the U.S. Supreme Court changed the way federal campaigns will be funded, lifting restrictions on independent expenditures by corporations and unions, and allowing unlimited corporate dollars to be used to advocate the election or defeat of specific candidates.
The Chamber OPPOSES three bills that would permanently expand Unemployment Insurance; SB 239 (Watkins R10th), SB 562 (Puckett D-38th), and HB 647 (Armstrong D-10th). The expectation is that the Senate bills will emerge from the Senate so our focus will be on the House.
The Governor’s bills to support job creation will be carried by Senate Finance Chair Colgan, Senator Wampler and House Appropriations Chair Putney.
McDonnell is calling for $50 million in new investments over the next biennium. The Governor is proposing:
During the General Assembly session, please feel free to contact the Chamber’s governmental affairs team. Ira Agricola can be reached at 664-2570 or at firstname.lastname@example.org.You may contact Candace Reid at 664-2572 or at email@example.com to bring any business issue or concern to the attention of the Chamber.