NVTA To Stop Collecting Grantor’s Tax and Fees Effective Immediately

The Northern Virginia Transportation Authority (NVTA) just announced this morning that they will no longer be collecting taxes and fees, including the higher Grantor’s Tax, effective immediately. They are instructing people not to contact the NVTA for refunds at this time. Once they have the refund process and staff in place, they will announce the procedures at that time.

Whether this means that the clerks of the courts will stop collecting them is another story. As of yesterday, they were not told by the Attorney General to stop collecting the higher Grantor’s Tax from sellers and were continuing to do so. And there is still a 10 day appeal process available to the NVTA.

UPDATE: In light of this decision, Loudoun County’s Clerk of the Court will no longer collect the regional transportation grantor’s tax effective today, March 4, 2008. The Clerk’s office is awaiting a response from the NVTA regarding the announcement of refund procedures for grantors taxes collected since January 1st, 2008.

Here is the official press release from the NVTA:

PRESS RELEASE
For Immediate Release
March 4, 2008

NORTHERN VIRGINIA TRANSPORTATION AUTHORITY ORDERS  CESSATION OF COLLECTION OF ALL TAXES AND FEES IN ACCORDANCE WITH VIRGINIA SUPREME COURT RULING OF FEBRUARY 29, 2008 

All collection agents will cease collecting taxes and fees immediately

NORTHERN VIRGINIA – On February 29, 2008 the Virginia Supreme Court ruled that the General Assembly did not have a constitutional basis to delegate taxation authority to the Northern Virginia Transportation Authority (NVTA). 

Therefore, the action of the General Assembly and the taxes and fees collected by the Authority were declared “null and void” by the court.   

Subsequently, the Virginia Commissioner of Motor Vehicles and the Commissioner of Taxation have been instructed to discontinue collecting those regional taxes and fees for which they are responsible. 

Authority to Cease Collection of ALL Taxes and Fees Immediately

This press release notifies all Northern Virginia Transportation Authority agents to cease collection of taxes and fees in all of the categories coordinated by local authorities in Northern Virginia. 

The following NVTA taxes and fees will not be collected, effective immediately (10:00 am March 4, 2008):

• 2% Transient Occupancy Tax
• Grantor’s Tax of 40 Cents per $100 of valuation
• 2% Tax on Vehicle Rentals
• Safety Inspection Fee of $10
• Initial Vehicle Registration Fee of 1%
• 5% Sales Tax on Auto Repair
• Regional Vehicle Registration Fee of $10

Refund Process

The Authority is developing a refund plan for the taxes and fees that have been paid to date involving state and local authorities as well as various business entities.  None of these funds have been spent, and the Authority anticipates providing full refunds as soon as possible.

As soon as this plan is adopted by NVTA, it will be posted to the Authority web site at www.thenovaauthority.org. 

NOTE:  Potential applicants for refund should retain evidence of payment — as it may be required as proof of payment.

Taxpayers are asked not to call or e-mail the Authority directly at this time.  The Authority has a very limited staff focused on responding to the Supreme Court decision and preparing specific refund procedures.  Unfortunately, they cannot respond to individual inquiries at this time. 

As soon as a refund plan is in place the news media, businesses, regional partners and taxpayers will be notified.

The Authority understands the public’s concerns and appreciates their patience as the specifics of the refund procedures are developed.

For future updates please go visit www.TheNoVaAuthority.org.

## NVTA ##

Kala L. Quintana
Director of Public Outreach, Northern Virginia Transportation Commission
Interim Public Information Officer, Northern Virginia Transportation Authority