Governor's Transportation Package

By: Venton Blandin Email
By: Venton Blandin Email

January 4, 2007

Those in the market for a new car may have to shell out more cash before taking the car off the lot. The reason is a proposed increase in the car tax by Governor Tim Kaine.

People who already own cars are not in the clear of spending more cash. The governor's transportation package proposal is set to raise the cost of vehicle registration as well as the sales tax on new cars.

Just like the street signs that warns a change further down the road; its actual construction suggests a change as well.

"Further delay on transportation funding is unacceptable. Virginia's future just won't wait for further delay," said a member of Governor Kaine's Transportation Coalition.

To avoid congestion on Virginia roads, Governor Kaine is proposing car buyers pay more money, by way of a transportation package.

The sales tax on new cars would increase from three percent to five percent. The cost of vehicle registration would increase by $15.

Dayo Lanier feels the increases are a bit much when combined with other expenses.

"It's a lot. I really do understand the need to increase revenue by any means you can. It seems like a bit of a squeeze for most people who live in Charlottesville," said Customer Dayo Lanier.

Those who sell cars believe the increases will not affect sales as much as some would think. However, it may affect the customer.

The transportation package is expected to bring in 850 million dollars. Virginians may not be thrilled about it, but will become smarter when shopping anywhere for a new car.

"I think what they will end up doing is shopping a little harder than they did in the past. They'll spend more time doing their research, and ultimately they'll do what they have to do when they need a car, and go out to buy one," said Brown's Automotive Group's Director of Sales Jay Malone.

The democratic governor faces a major obstacle in the republican-controlled house of delegates. The house rejected similar proposals before with the most recent happening last year.

The general assembly will begin considering Governor Kaine's transportation package when the 46-day legislative session starts next week.

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