A group of state senators and Virginia businesspeople filed a lawsuit yesterday in a bipartisan effort to prevent Gov. James S. Gilmore III's (R) administration from cutting the car tax.
The lawsuit, filed Tuesday morning at Richmond Circuit Court, alleged in a writ of mandamus that three Gilmore staff members neglected their duties by allowing the governor to proceed with his agenda of reducing the car tax by 70 percent this year, rather than keeping it at its current reduction of 47.5 percent.
If the petitioners win, the court would require that the Gilmore administration postpone more cuts.
According to Gilmore spokeswoman Yooree Oh, "the governor's budget projection met every provision of the car tax act."
"This is truly a political ploy," Oh said. It is "depriving people of their rightful tax relief."
Virginia Comptroller William E. Landsidle, Treasurer Mary G. Morris and Department of Motor Vehicles Commisioner Richard D. Holcomb were named as respondents in the suit.
However, it also was targeted at Gilmore, according to State Sen. Warren E. Barry (R-Fairfax), a co-petitioner in the suit.
"Whereas Democrats let Clinton run amok in Washington D.C., we can't do that in Richmond," Barry said.
"We had hoped to avoid filing the suit, but the budget impasse and proposed budget cuts continue, and we now believe that this legal question should be resolved as soon as possible so that any cloud over the car tax is removed," he said.
Other petitioners in the suit were State Sen. Richard L. Saslaw (D-Springfield), Northern Virginia businessman Earle C. Williams, former George Mason University president George W. Johnson, Newport News attorney Herbert V. Kelley Sr. and Roanoke businessman Warner Dalhouse.
They claim that Gilmore broke the law by submitting to the Advisory Council on Revenue Estimates budget projections for 2001 and 2002 that included revenue from a tobacco settlement without first getting the necessary approval from the General Assembly.
The suit said that it was not legal for Gilmore to allot the 20 years worth of tobacco settlement funds that he used in his budget estimate.
If Gilmore had not calculated in those funds, the general fund revenue would not grow by 5 percent, as is required by the Personal Property Tax Relief Act of 1998.
The act also states that in order to cut the car tax, the budget estimate could not exceed the actual revenue by more than half a percent and that the budget estimate could not estimate fewer funds available for appropriation than existed in the previous year's budget.
"I'm in favor of the cutting the car tax," Barry said. But "I'm opposed to somebody putting himself above the law."
Because the General Assembly adjourned in February without passing a budget, the Gilmore administration was forced to design a budget for the upcoming fiscal year.
Gilmore's budget has drawn criticism from University officials because it cut funds for several projects, including the construction of a studio arts building and a new special collections library.
"The governor considers education his highest priority," Oh said. He "maintains that the budget is balanced"
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