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CONGESTION RELIEF TAX (aka INCREASED GRANTOR TAX) |
An E-News Bulletin
Compliments of RGS TITLE, LLC – 11/30/07
As a reminder, the Virginia legislature passed HB3202, which among other things provides for the Transportation Authorities in Hampton Roads and in Northern Virginia to impose specific transportation taxes, including the "Congestion Relief Fee" to be collected along with the Grantor Tax on deeds transferring property. The additional tax will be $0.40/$100 of value of the real estate transferred.
We are still waiting to see official announcements by the Clerks of the Courts subject to the legislation in Northern Virginia (Alexandria, Arlington, Fairfax, Prince William and Loudoun), but the latest postings on the NVTA website indicate that the implementation date is still January 1, 2008 as originally proposed. The NVTA has now published brochures for the public, available on their website which can be found at www.thenovaauthority.org.
The taxes were approved by the Northern Virginia Transportation Authority (NVTA), but the law has been challenged in court and the cases are currently on appeal to the Virginia Supreme Court, scheduled to be heard in January, 2008. Subject to further court action or changes by the NVTA (the next scheduled meeting of the NVTA is December 6, 2007), for purposes of your transaction planning you should assume that January 1, 2008 will be the date the Grantor tax increase will take effect. That also means that sales contracts closing at the end of 2007, to be recorded in 2008, will be subject to the increase.
The information in these materials was prepared by the law firm of Shreves Schudel Devol Saunders Jackson Clarke and Parello, PLLC in its capacity as general counsel to RGS TITLE LLC. It is not intended nor should it be relied upon as legal advice, without consulting independent counsel for specific advice on your particular circumstances.