In a ruling denounced by the Portsmouth business community and commuters, but applauded by VDOT, the Virginia Supreme Court unanimously overturned a ruling by a lower court that held the tolls imposed to pay for tunnel expansions and maintenance in Portsmouth are unconstitutionally-imposed taxes. The Supreme Court instead ruled that the tolls are indeed user fees for the benefit of those that use the tunnels, not the general public. The tolls are being used solely to pay for the project, not to raise general revenue; and drivers are not compelled to use the tunnels, so can avoid the tolls. VDOT worried that if the lower court ruling stood it could hamper private-public partnerships in other parts of the state and call into question the entire Public Private Transportation Act of 1995.
TIFIA
VA Supreme Court: Tunnel tolls are user fees, not taxes
In a ruling denounced by the Portsmouth business community and commuters, but applauded by VDOT, the Virginia Supreme Court unanimously overturned a ruling by a lower court that held the tolls imposed to pay for tunnel expansions and maintenance in Portsmouth are unconstitutionally-imposed taxes. The Supreme Court instead ruled that the tolls are indeed user fees for the benefit of those that use the tunnels, not the general public. The tolls are being used solely to pay for the project, not to raise general revenue; and drivers are not compelled to use the tunnels, so can avoid the tolls. VDOT worried that if the lower court ruling stood it could hamper private-public partnerships in other parts of the state and call into question the entire Public Private Transportation Act of 1995.