Va. Gov. to Seek Tax Increases for Roads

Tue May 13, 2008 - Southeast Edition

RICHMOND, Va. (AP) Gov. Tim Kaine says he will ask lawmakers to boost the titling tax on car sales and car registration fees statewide for road upkeep.

Kaine proposed increasing the titling tax from 3 percent to 4 percent and boosting the registration fee by $10. The governor released details of his plan at a state Capitol news conference May 12.

The governor also proposed increasing the state sales tax by a penny in traffic-clogged northern Virginia and Hampton Roads, with the revenue to be spent only in those regions. He also wants to increase the grantors tax, which is paid by people selling their homes.

He will ask legislators to consider the measures at a special session of the General Assembly he has called for June 23, the second special session on transportation funding since 2006.