Tax Schedule Ruled Illegal

By Broadside Managing Editor Aram Zucker-Sharff

The Virginia Supreme Court ruled the Northern Virginia Transportation Authority's power to tax unconstitutional this past Friday. This development puts northern Virginia’s multi-million financing system, created to support transportation initiatives, at risk.

The state's Supreme Court unanimously ruled that the NVTA's schedule of taxes was illegal because the NVTA was not an elected body. The court cited a number of constitutional obstacles to the plan, including the bill’s structure, and ruled that the tax collection was illegal. This includes taxes that have already been collected in Fairfax and Arlington, where revenue was being raised through an increase in taxes on commercial properties.

The NVTA's taxes were expected to create as much as $400 million for the NVTA’s projects throughout the northern Virginia area, including Fairfax, Loudoun, Prince William, Arlington and the city of Alexandria.

Within the Transportation Authority’s jurisdiction, Loudoun County was the only local government to publicly oppose the NVTA tax. Despite the lack of official objection, it was a group of citizens who brought the lawsuit forward.

This is the latest in a string of failures as the state tries to raise the money required to enact improvements throughout Virginia. The state has continually been unable to raise revenue for transportation projects. Its previous attempts include the recently repealed abusive driver fees and the federally nixed Silver Line to Dulles.

With infrastructure funds at risk, a number of projects face doubtful prospects. These include improvement to Metro capital, Virginia Railway Express, road and highway improvements, and an expansion in bus service.

Also at risk are the revitalizing plans for communities affected by the closure of military bases.

The General Assembly has a single week left of its session and may need a special session to address the issues created by the deficit in transportation funds.