Dedicated Funding Plan for Metro Awaits Action by the Governor
The fate of providing dedicated funding for Metro is in the hands of Governor Northam. Members of the Virginia General Assembly agreed on a $154 million plan to fund Metro without imposing any new taxes. It is important to note that this plan has not yet been approved by Governor, who has three options: sign, veto, or offer amendments to the plan. The Governor indicated that although he may offer amendments, the level of funding will remain the same. This means there is still a possibility that an increase in the grantor’s tax will be included. If the Governor amends the plan, it will be sent back to the General Assembly at a reconvened session in April.
The plan sent to the Governor provides $154 million per year to Metro, with the bulk of the funding coming from existing funding resources. An additional amount will come from setting a floor on the regional gas tax. Highlights include:
- No new taxes on real estate transactions or hotel stays.
- $44 million from existing “Grantor’s” tax.
- $20 million from existing state recordation tax.
- $27.12 million from existing Northern Virginia Transportation Authority (NVTA) revenues.
- $29.7 million from existing regional Transient Occupancy Tax (TOT).
- $10 million from existing motor vehicle rental tax.
- $22 million gas floor tax.
The plan also includes reforms to Metro and a requirement that Maryland and the District of Columbia each contribute their proportional share of total Metro funding.
DAAR leadership continues to be actively engaged in discussions to minimize the impact on the real estate industry. Along with DAAR, members of the Northern Virginia Association of REALTORS® and the REALTOR® Association of Prince William issued a joint position on the issue.
Questions, contact Brenda Morton, Government Affairs and Communications Manager, at (703) 777-2468 or email@example.com.