Repeal the fees; raise revenue through gas tax
Bristol Herald Courier Staff Editorial
Published: January 28, 2008
Updated: January 29, 2008
Virginia lawmakers seem close to an agreement to end the abusive driver fees – steep civil penalties that were supposed to pump $65 million annually into the state’s road repair budget.Published: January 28, 2008
Updated: January 29, 2008
In reality, the fees didn’t live up to their billing. They generated far less revenue than anticipated and, more importantly, had no impact on highway safety.
Lawmakers could vote to end the fees as early as this week. But their work won’t be over. They need to find a way to replace the lost revenue and to provide some relief to those Virginians who have already paid the fees.
Reaching a compromise on these latter matters won’t be easy.
Sen. Phillip Puckett, D-Tazewell, abandoned his prudent push to link the abuser fee repeal with a modest 2.5 cent increase in the gas tax. The slight gas tax hike had the potential to raise about $65 million a year for highway work. But Puckett allowed his bill to be combined with others and stripped of the tax provision in the interest of speedier passage of the repeal measure.
Certainly, this is political pragmatism on Puckett’s part. The fee repeal has nearly universal support – even from some House Republicans who had originally sought to broaden the fee’s application to out-of-state drivers rather than eliminate it. As approved last year, the fee only applied to Virginia motorists.
A gas-tax hike will not have universal support. Its chances in the Republican-controlled House of Delegates are probably slim. Responsible lawmakers should push forward with it anyway.
The abusive driver fees were nothing more than a cleverly camouflaged tax scheme. They allowed lawmakers, particularly House Republicans, to talk out of both sides of their mouth. These lawmakers were able to claim dogged opposition to taxes while still raising revenue – albeit from a much smaller group of state residents – to pay for roads.
Better to be honest and admit that the state needs a steady, dedicated source of money to repair its roads and build new ones. The gas tax makes the most sense for a number of reasons. Those who drive the most pay the most and out-of-state motorists, like those who travel Interstate 81, pay their share as well.
It won’t be easy to push for any sort of a tax increase given the state of the economy. Virginia Gov. Tim Kaine has told lawmakers to expect a lean budget year. A lean budget will mean tough choices across the board; it decreases the likelihood that general fund dollars will be available for transportation projects. The gas tax offers the only real alternative source of transportation funding.
The other dilemma for lawmakers will be providing some relief for motorists who were assessed the abusive driver fees last year. State courts have imposed $14 million in fees with about $5 million of the total immediately payable. Drivers hit with the fees were required to pay them in three annual installments.
If the fees are repealed, motorists should be immediately relieved of their obligation to fork over the second and third installments to the state. And state lawmakers should explore ways to refund the fees already collected.
The bills moving in the House and Senate don’t address this matter because lawmakers haven’t been able to agree on a solution. Some lawmakers don’t believe they have the power to make the repeal retroactive. They argue that residents will have to petition the courts for relief, an obviously burdensome process.
In an encouraging development, lawmakers did agree to amend the repeal legislation so that it will take effect as soon as the governor signs it. We urge lawmakers to put their heads together and tackle these other dilemmas – relief for motorists and a replacement revenue source – in that same spirit of compromise. Do the right thing for state residents and state roads.
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