Proposal would route regional transportation fees and taxes to public transit

The proposal describes taxes and fees on certain vehicles, sales, rides, deliveries, and commercial parking. The vehicle fee covers certain alternative-fuel, electric, and fuel-efficient vehicles. Local sales taxes would apply in localities served by either named transportation commission; the parking tax would apply only in Northern Virginia commission localities. The 0.2 percent local sales tax and retail delivery fees would not apply to food or essential personal hygiene products. The parking tax would exclude WMATA lots, parking charges imposed by WMATA or a locality, and residential lots. The retail delivery fee rates would be adjusted each year starting July 1, 2027.

The proposal would direct transportation revenue into regional funds for public transportation. The funds would receive specified revenue tied to localities in the Northern Virginia and Potomac and Rappahannock transportation commissions. Northern Virginia's fund would deposit $136 million a year into WMATA's capital fund and $9.1 million into commuter rail funds starting in fiscal year 2028; each amount would rise by three percent a year after 2028. The $136 million WMATA deposit would be conditional on minimum contributions from the District of Columbia and Maryland. The Potomac and Rappahannock fund would deposit $18.2 million a year into commuter rail funds starting in fiscal year 2028, increasing three percent annually after 2028. Extra revenue would stay in local trust accounts for public transportation. The specified deposits would begin in fiscal year 2028.

The proposal sets out allocations from the Commonwealth Mass Transit Fund and conditions for some WMATA payments. The provisions cover state transit money for operating costs, capital projects, commuter rail, WMATA, and other transit programs. Transit recipients would need to provide a local match. WMATA's matching funds would also depend on contributions from Maryland and the District of Columbia. The Board would withhold specified WMATA funds if required reports, plans, or budget information are not published or submitted, or if specified cost-growth limits are exceeded. WMATA's unit-cost reporting would start no later than its proposed fiscal year 2028 budget; the three percent cost-growth limit would begin in fiscal year 2029.