City of Manassas Park Overview of NVTA and Taxes/fees from HB 3202 June 19, 2007
HB3202 & NVTA • 4/4/07 – General Assembly approved Governor’s substitute for HB 3202 • Provides authority for NVTA to implement 7 taxes/fees and option for localities to raise the commercial real estate tax rate and auto decal fee. • NVTA was established in 2002 – developed & adopted long range transportation plan with priorities and made recommendations to VA transportation board. • Counties: Arlington, Fairfax, Loudon, Prince William • Cities: Alexandria, Falls Church, Fairfax, Manassas, Manassas Park • NVTA is now in process of expanding its role to administer these additional taxes/fees. • Set up separate working groups for organization, financial, legal, implementation and public outreach.
Taxes/fees • Transient Occupancy Tax (Hotel Tax) – add 2% • No impact on the City • Rental car tax – add 2% • Sales tax on auto repairs – 5% • Initial vehicle registration fee – 1% of value • Safety inspection fee – add $10 • Registration fee (autos) – add $10 • Grantor’s tax (on sale of homes) • $0.40 per $100 valuation • $1,600 on a $400,000 sale
Taxes/Fees • 40% of the funds generated from the additional taxes/fees to be returned to the locality where raised. • ½ of this to be used for secondary and urban roads • 60% to NVTA for regional needs. • Priorities: • debt service on any bonds issued; • $50 M per year for Metro capital expenses; • $25 M per year for VRE capital and operating expenses. • Overall, funds must generally be distributed to projects and services benefiting the localities proportionally, based on where the funds were raised.
Other Info • Logistical issues to be resolved • Method of collection & remittance • Staffing of NVTA • Impact of NVTA debt on localities • Implementation of recommendations of working groups • If NVTA adopts all 7 taxes/fees, it could raise more than $300 million annually for transportation projects in NOVA. • City-only collections would be a fraction of this amount. • Projected at $250-500K (gross) • Difficult to estimate (home sales, business revenue, etc)
Next Steps • Comments on the recommendations are now being accepted by mail: 3060 Williams Drive, Suite 510; Fairfax, Virginia 22031 • NVTA website will be active by June 18, 2007. E-mail comments will also be accepted when the site is up and running.
Next Steps • June 28 – Town Hall Meeting with PWC and Manassas. • George Mason University, Prince William Campus Verizon Auditorium 7:00 p.m. (Speaker sign-up to begin at 6:30 pm) • For more information please contact: Nicole Brown at 703-792-6992 or via e-mail at firstname.lastname@example.org • July 12 - NVTA Public Hearing • Mary Ellen Henderson Middle School -7130 Leesburg Pike, Falls Church • Meeting starts at 6 pm but people can sign up to speak until 8 pm • Affirmative vote of NVTA required to impose the 7 taxes/fees. • Support of 6 of 9 local members representing 2/3rds of the region’s population