LCRC Resolution Rejecting Proposed Region-wide Metro Sales Tax

June 26, 2017

Resolution Rejecting Proposed Region-wide Metro Sales Tax, June 26, 2017

WHEREAS, the Loudoun County Republican Committee recognizes fiscal responsibility and limited taxation as basic principles of sound government, and that taxation has a negative effect on economic activity; and

WHEREAS, Loudoun County will eventually be served by two Metro stations and 4.9 miles of track, it is in the best interest of the County to encourage responsible management of the Metro system; and

WHEREAS, the poorly structured terms of the WMATA Compact, an agreement between Virginia, Maryland and the District of Columbia which governs the management of Metro, is inherently flawed, thereby limiting Metro management's ability to achieve a satisfactory level of service, reliability, and safety; and

WHEREAS, the poorly structured terms of the WMATA Compact have precipitated the accumulation of a multi-billion-dollar unfunded pension liability and a 10 year, $7.5 billion capital and operating deficit; and WHEREAS, while the Virginia General Assembly has appropriated generously over the 40-year life of the Metro system, the substandard financial and physical condition of the system is evidence that structural reforms to the WMATA Compact are an absolute prerequisite to achieving a satisfactory level of service, reliability, and safety; and

WHEREAS, while showing marked improvement under current management, Metro's fiscal health is unstable and uncertain, a problem that must be corrected by revising the WMATA Compact before revising the funding needs of the Metro system; and WHEREAS, the Virginia General Assembly has already passed into Virginia law a revision of the WMATA Compact that would make significant improvements to terms of the WMATA Compact; and

WHEREAS, the Technical Panel of the Metropolitan Washington Council of Governments is calling for a 1% sales tax on the region served by Metro; and WHEREAS, in 2013 the General Assembly approved a Northern Virginia regional sales tax increase of 0.7%, Virginia thus increasing our sales tax from 5.3% to 6.0%; and further increasing the sales tax from 6.0% to 7.0% on the area served by Metro would burden Northern Virginians with a sales tax rate that is 132% of the Commonwealth's sales tax rate; and WHEREAS, as proposed by the Technical Panel of the Metropolitan Washington Council of Governments, a 1% Metro sales tax would ignore the established regional funding formula ratio which currently places a 28% share on Virginia and instead would create a tax which would extract a 51% (and rapidly increasing) share from Virginia; and

NOW THEREFORE BE IT RESOLVED, that the Loudoun County Republican Committee strongly urges county, state, and federal representatives to completely reject the regional sales tax proposed by the technical panel of the Metropolitan Washington Council of Governments, and apply adequate pressure on Maryland and the District of Columbia to accept the revisions to the WMATA Compact already passed into law by the Virginia General Assembly; and

THEREFORE, BE IT RESOLVED, that the Chairman of the Loudoun County Republican Committee shall cause copies of this resolution to be disseminated to the members of the Board of Supervisors, state representatives, federal representatives, and to the media.

Signed, William A. Estrada, Chairman Loudoun County Republican Committee

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