Kaine suggest raising car sales tax

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by Jessica Sabbath

Gov. Timothy M. Kaine proposed raising the car sales tax from 3 percent to 5 percent to help make up for the estimated $290 million shortfall in the state’s transportation maintenance fund.

Currently, the sales tax is 3 percent on cars, while the general sales tax in Virginia is 5 percent.

Kaine has not proposed any specific legislation, but simply made a suggestion. The House of Delegates will likely reject any proposed tax increases this session.

Many lawmakers have proposed bills that would repeal the state’s abusive driver fees, but not as many have found ways to make up the $65 million the fees were supposed to bring in each year.

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