1 City of Manassas Park Overview of NVTA and Taxes/fees from HB 3202 June 19, 2007

2 HB3202 & NVTA - 4/4/07 – General Assembly approved Governor’s substitute for HB Provides authority for NVTA to implement 7 taxes/fees and option for localities to raise the commercial real estate tax rate and auto decal fee. - NVTA was established in 2002 – developed & adopted long range transportation plan with priorities and made recommendations to VA transportation board. - Counties: Arlington, Fairfax, Loudon, Prince William - Cities: Alexandria, Falls Church, Fairfax, Manassas, Manassas Park - NVTA is now in process of expanding its role to administer these additional taxes/fees. - Set up separate working groups for organization, financial, legal, implementation and public outreach.

3 Taxes/fees Transient Occupancy Tax (Hotel Tax) – add 2% – No impact on the City Rental car tax – add 2% Sales tax on auto repairs – 5% Initial vehicle registration fee – 1% of value Safety inspection fee – add $10 Registration fee (autos) – add $10 Grantor’s tax (on sale of homes) – $0.40 per $100 valuation $1,600 on a $400,000 sale

4 Taxes/Fees 40% of the funds generated from the additional taxes/fees to be returned to the locality where raised. – ½ of this to be used for secondary and urban roads 60% to NVTA for regional needs. – Priorities: debt service on any bonds issued; $50 M per year for Metro capital expenses; $25 M per year for VRE capital and operating expenses. Overall, funds must generally be distributed to projects and services benefiting the localities proportionally, based on where the funds were raised.

5 Other Info Logistical issues to be resolved – Method of collection & remittance – Staffing of NVTA – Impact of NVTA debt on localities – Implementation of recommendations of working groups If NVTA adopts all 7 taxes/fees, it could raise more than $300 million annually for transportation projects in NOVA. – City-only collections would be a fraction of this amount. Projected at $ K (gross) – Difficult to estimate (home sales, business revenue, etc)

6 Next Steps Comments on the recommendations are now being accepted by mail: 3060 Williams Drive, Suite 510; Fairfax, Virginia NVTA website will be active by June 18, comments will also be accepted when the site is up and running.

7 Next Steps June 28 – Town Hall Meeting with PWC and Manassas. – George Mason University, Prince William Campus Verizon Auditorium 7:00 p.m. (Speaker sign-up to begin at 6:30 pm) – For more information please contact: Nicole Brown at or via at July 12 - NVTA Public Hearing – Mary Ellen Henderson Middle School Leesburg Pike, Falls Church – Meeting starts at 6 pm but people can sign up to speak until 8 pm Affirmative vote of NVTA required to impose the 7 taxes/fees. – Support of 6 of 9 local members representing 2/3 rds of the region’s population