Reminder: Increase In Virginia Grantor’s Tax Takes Effect January 1st

A 500% increase in the Virginia Grantor’s Tax approved as part of a 2007 transportation funding package (HB 3202) will take effect January 1, 2008. The Virginia General Assembly and the Northern Virginia Transportation Authority (NVTA) voted earlier this year to increase the rate to a total of $5.00 per $1,000 to fund regional transportation projects. Currently, the rate is $1.00 per $1,000.

After the vote, the state filed a case in Arlington to ensure that the move was legal. A judge in Arlington County Circuit Court decided in favor of the NVTA.

Loudoun County and Delegate Bob Marshall then filed a counter suit and also appealed the decision to the Virginia Supreme Court. Last month, the Supreme Court granted Loudoun County’s petition for an appeal of the NVTA decision by the Arlington Circuit Court.

The case may be considered in January 2008, but the increase is still set to go into effect January 1, 2008.

For more information on the Virginia Grantor’s Tax and it’s implementation check out these documents.