HomeMy Public PortalAboutTOL PR 2013-05-30 new transportation funding
Town of Leesburg
News Release
For Immediate Release
Leesburg Residents Will See – And Benefit From – New State
and Regional Transportation Taxes
VDOT and NVTA public hearings on proposed transportation projects scheduled
Leesburg, VA (May 30, 2013) – On July 1, 2013, Leesburg residents will see some tax changes as
a result of the transportation funding bill passed by the Virginia General Assembly earlier this
year. The changes are projected to generate an additional $1.9 billion in transportation funding
for Northern Virginia over the next six years.
Statewide, the total sales tax rate will increase from 5% to 5.3% (1% of this rate is the local sales
tax). The estimated $265 million in additional annual revenue from this increase will be
dedicated to transportation projects throughout the Commonwealth. In addition to the
increased sales tax, the 17.5¢ per gallon state tax on gasoline will be replaced with a 3.5% state
sales tax. The 17.5¢ per gallon state tax on diesel fuel will be replaced with a 6% state sales tax.
In Northern Virginia, sales tax will increase an additional 0.7%, to a total of 6%. The Northern
Virginia Transportation Authority (NVTA) will receive 70% of this new regional sales tax
revenue, with the remaining 30% distributed to the localities, based on where the sales tax was
generated. Revenue from two additional new taxes will be similarly distributed to the NVTA
and the localities. First, there will be a new 2% transient occupancy tax (TOT) on all hotel
rooms in Northern Virginia. The 2% regional TOT will be levied in addition to any existing local
TOT. In Leesburg, the TOT rate is currently 6%; the total TOT rate will increase to 8%. Secondly,
a grantor’s tax will be levied on all land sales, at a rate of 15¢ per $100 of the sale value.
“The short story for Leesburg residents is that they will see an slight increase in sales tax on
items other than food, but should see a decrease in what they pay at the pump,” said John
Wells, Leesburg’s Town Manager.
In Loudoun County, the new sales tax is expected to generate an additional $46.9 million in
annual local revenue for transportation infrastructure projects. This $46.9 million will be
divided between the County and the towns of Leesburg and Purcellville, based upon a formula
yet to be determined. Leesburg and Purcellville are the only two towns in Loudoun County that
maintain their own roads.
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TOL PR 2013-05-30 new transportation funding
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“It is important to remember that in addition to the new funding for locally managed projects,
transportation projects in Leesburg and Loudoun County will be included in the VDOT’s Six Year
Improvement Plan as well as among the NVTA’s projects,” noted Tom Mason, Leesburg’s
Director of Public Works. “Town staff will work with representatives from both VDOT and NVTA
to identify priority projects in Leesburg, like the grade-separated interchange at the Route 15
Bypass and Edwards Ferry Road, for inclusion in their programs.”
Both VDOT and NVTA have scheduled public hearings on their respective proposed programs of
work for the coming year. VDOT held a public hearing at its Northern Virginia District Office
earlier this week, but additional public hearings around the state are scheduled. The full
schedule is available on the VDOT website at www.virginiadot.org. The NVTA will hold a public
hearing on its FY 2014 projects on June 20, 2013, at 5:30pm in the Fairfax City Hall (10455
Armstrong Street, Fairfax, VA 22030). For more information, please visit the NVTA website at
www.thenovaauthority.org.
Contact:
Betsy Fields
Research & Communications Manager
bfields@leesburgva.gov
703-771-2734
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