Virginia Governor Terry McAuliffe is proposing higher taxes on northern Virginia real estate sales, hotel stays, and wholesale gasoline to help fund the D.C.-area Metro system, the Washington Post reported.

The additional revenue would amount to $65 million a year, to be added to the existing $85 million that Virginia puts aside from their transportation budget. This would bring their annual contribution to $150 million, the Washington Post explained, but that’s not without some conditions.

Firstly, Virginia will only provide the funds if both the District and Maryland also commit dedicated funding. The second condition is in regards to the Metro board. The 16-member group must be replaced by a temporary “reform board” of only five members, the Washington Post noted. This comes from a recommendation made by the former U.S. Secretary of Transportation Ray LaHood.

As far as specifics go, the increased real estate tax would mean the transfer levy, or grantor’s tax, would go from 10 cents per $100 of assessed value up to 25 cents per $100, the Washington Post explained. This would bring in $33 million for Metro in 2019. The hotel levy would see transient occupancy tax rise from 2 percent up to 3 percent, adding $15 million annually.

Currently, the wholesale gas tax has an existing floor. This floor would be applied to regional levies, Washington Post noted. If that tax is passed on to retail customers, there would be an increase of 2 cents per gallon at the pump. This would add $17 million to Virginia’s Metro contribution.

A major concern is how this funding might negatively impact necessary infrastructure projects in the area, though local leadership seems to understand the necessity of investing in Metro, Washington Post noted.

“My concern has been shaving some of the funding from [the Northern Virginia Transportation Authority], but on the other hand, funding for Metro is really our major priority right now,” Fairfax County Board of Supervisors Chairman Sharon Bulova said to the Washington Post. “There is no perfect package. I’m sure there will be some folks who will be disappointed and may have some objections. The bottom line is, I think it’s a pretty good package.” 

As the taxes in question are specifically for the northern region of Virginia, the only jurisdictions affected would be Fairfax, Arlington, Loudoun, and Prince Williams counties, Washington Post noted. Cities affected include Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park. The proposal will be presented at the legislative session beginning in January.