VA HB900

Expands Virginia's sales and use tax to cover taxable services and digital personal property, creating new tax categories and revenue streams for transportation funding.

Restructures transportation fund allocations, shifting the Commonwealth Transportation Fund distribution from 51%/49% (Highway Maintenance/Transportation Trust) to 47%/53%, and adjusts the Transportation Trust Fund percentages to increase mass transit funding from 23% to 26%.

Modifies highway construction district grant program allocations, reducing state of good repair funding from 30% to 27.5%, high-priority projects and district grants from 20% to 18% each, while increasing Interstate Operations and Enhancement from 20% to 26.5%.

Increases Commonwealth Mass Transit Fund allocations for WMATA from 46.5% to 55.5% and establishes new unit cost growth accountability requirements, allowing the Board to withhold 35% of WMATA funds if rail or bus service unit costs grow more than 3% annually.

Applies transportation district taxes in certain areas and authorizes up to 15% of highway construction district grant funds for transit capital and operating support for agencies not already receiving direct regional authority funding.