A business group that backs higher taxes for transportation and activists who oppose them were out in force yesterday as lawmakers returned to Richmond.

Meantime, the Virginia chapter of the National Federation of Independent Businesses reported that the state's small-business owners are split on Gov. Timothy M. Kaine's transportation plan.

Before lawmakers convened in special session yesterday, Kaine held a news conference at the state Capitol with members of the Virginia Business Council. Kaine said the coalition of 41 business organizations recognizes the importance of fixing Virginia's highway and transit problems.

The Virginia Business Council and the Greater Richmond Chamber were among 21 groups that urged Kaine and the General Assembly last month to finance highways and mass transit with $1 billion in new sales or gasoline taxes, or a combination of the two.

Yesterday, the small-business group, NFIB/Virginia, reported that in a survey of its members, 82 percent opposed Kaine's plan to raise the grantor's tax -- paid by the seller of a property -- and 62 percent opposed Kaine's plan to increase the motor-vehicle sales tax.

The organization said 54 percent of its members backed regional sales-tax increases in Northern Virginia and Hampton Roads and that 50 percent backed an increase in the auto-registration fee.

About 125 opponents of higher taxes brought their campaign to the Capitol grounds yesterday morning, rallying in front of a 12-foot inflatable likeness of an ATM -- in this case, an acronym for "already taxed to the max."

The rally was organized by Americans for Prosperity, a conservative grass-roots organization whose national president, Tim Phillips, also is principal political adviser to the presumed Republican nominee for governor, Attorney General Bob McDonnell.

Ben Marchi, head of the Virginia arm of AFP, opened the rally with an attack on Kaine's proposed transportation fix.

"We don't need his big-tax solution in uncertain economic times," Marchi said.
Contact Jeff E. Schapiro at (804) 649-6814 or jschapiro@timesdispatch.com.

Contact Jim Nolan at (804) 649-6061 or jnolan@timesdispatch.com.