Three Northern Virginia delegates are introducing legislation that would raise up to $200 million for transportation by charging income tax on certain out-of-state corporations that sell services in the Commonwealth.
The Republican delegates — Dave Albo of Fairfax, Joe May of Loudoun and Tom Rust of Loudoun – all of whom, more likely than not, have constituents that have sat in traffic at some point in their lives, are proposing the bill.
Corporations affected could include those that employ lawyers or computer programmers who work in the state. The bill would close a loophole that allows certain corporations that provide such services in Virginia to escape paying state income tax on earnings from the sales.
The state loses up to $250 million in corporate income tax revenue per year, according to the General Assembly’s Joint Legislative Audit and Review Commission.
But could a transportation proposal that involves taxes pass the Republican-controlled House of Delegates? Albo seemed to think so.
“If people will actually read the bill and realize it’s not a tax increase," he said, "it will pass.”