ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, December 2, 1993                   TAG: 9312020091
SECTION: VIRGINIA                    PAGE: A-1   EDITION: STATE 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Medium


ALLEN TO FIGHT GAS TAX

Gov.-elect George Allen vowed Wednesday to fight proposals for a state gas tax increase to pay for transportation improvements and promised to veto such a tax if it passes the 1994 General Assembly.

Allen previously has said he was not inclined to support a gas tax increase.

"Since the election, a number of prominent Virginians have raised the specter of higher taxes on fuel to pay for transportation improvements," Allen told the Virginia Farm Bureau convention in Roanoke in his first major policy speech since his Nov. 2 election.

"I have listened to their point of view and considered their arguments," Allen said. "And I share many of their concerns about the state of our transportation system here in Virginia, but I have concluded that this is no time to be raising taxes in Virginia - not gas taxes, not any taxes."

Allen, however, left the door open for a gas tax increase in later years of his administration. He said he might consider the matter after a committee he appointed to look for ways to streamline state government finishes its work.

Allen also said he opposes a Clinton administration proposal to raise the federal tax on tobacco to finance health-care reform. He said the tax would cost Virginia thousands of jobs and millions of dollars in lost revenue.

"I will aggressively lobby Virginia's delegation and the Clinton administration to seek federal waivers which allow Virginia to develop a plan that's right for Virginians," Allen said.

In state matters, Allen said he will continue to endorse land-use assessments in Virginia. Under state law, land is assessed on the value of what it's used for and not what it might bring on the open market. Land used for farming is assessed at a lower rate than land being developed for housing or shopping centers.

"Without it, many farmers would be unable to meet the high tax burden and would be forced to go out of business," Allen said.

Some state legislators from Northern Virginia and other areas with development pressures and budget shortfalls want to eliminate land-use taxation laws. For the past few years in the General Assembly, there have been attempts to increase the taxes on farmland when it's sold for development.

"Some localities would like to do away with land-use assessment," said Farm Bureau spokeswoman Martha Moore. "There is a perception that developers are using it as a tax break. But there are safeguards to ensure the land is being used as agriculture."



 by CNB