Grantor’s Tax Update – Court Rules NVTA Taxing Powers Unconstitutional
February 29, 2008 by Danilo Bogdanovic
Filed under Loudoun County, Outside Loudoun
Today, the Virginia Supreme Court ruled unconstitutional the taxing powers given to the Northern Virginia Transportation Authority (NVTA). This gives serious doubt as to whether the Grantor’s Tax will remain in effect. The Grantor’s Tax was increased by 500% beginning January 1, 2008 as part of the NVTA’s plan.
Governor Tim Kaine and the Virginia General Assembly originally empowered the NVTA to collect specific taxes in Northern Virginia to spend on transportation improvements in the region. Part of these taxes included the "Grantor’s Tax" paid by home owners when selling their homes.
The NVTA went to an Arlington court to confirm its authority to sell bonds against the increased tax revenue that would be collected. Loudoun County immediately jumped in to oppose the NVTA.
The case then made its way up to the Virginia Supreme Court, which heard arguments on January 8, 2008 and ruled on it today.
Those who settled between January 1, 2008 and today can contact the NVTA to request a refund on their Grantor’s Tax.
For the actual VA Supreme Court ruling, click here.
UPDATE: If you sold your home after December 31, 2007 and paid the higher Grantor’s Tax rate ($5 per $1000), you may request a refund. For more information on how to do so, click here.
Partial Source: Loudoun Easterner
Terelli on Fri, 29th Feb 2008 3:47 pm
So when I close on a new house next Wednesday in Loudoun, am I paying the 5x increase Grantor’s tax, or last year’s Grantor’s tax?
Danilo Bogdanovic on Sat, 1st Mar 2008 5:06 pm
Terelli – You should be paying last year’s Grantor’s Tax amount, which is $1 per $1000. Make sure you and/or your agent contact the settlement company that is handling the settlement to confirm.