Kaine calls for increase in vehicle sales, registration

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Gov. Timothy M. Kaine will announce a transportation plan today that will propose increasing vehicle registration fees by $10 and increasing the auto sales tax from 3 percent to 4 percent.

Kaine’s plan, highlighted today by the Richmond Times-Dispatch, also proposes increasing the regional sales tax in Northern Virginia and Hampton Roads by one percentage point. The plan would replace regional tax plans that were struck down by the Virginia Supreme Court last year.

Virginia’s current sales tax is 5 percent. Kaine’s proposed increase would not be implemented on food and over-the-counter drugs.

The governor’s plan also calls for an increase in the “grantors tax,” or the tax a home seller pays by 25 cents per $100 of assessed value.

The General Assembly will meet in a special session on transportation funding on June 23.

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