How To Request A Refund On Your Grantor’s Tax

Governor Timothy M. Kaine signed House Bill 1578 which establishes procedures to return taxes and fees collected by the Northern Virginia Transportation Authority (NVTA). The Clerks of the Circuit Courts will work with settlement agents to return the congestion relief fee (real estate grantor’s tax) to the affected settlement agents within 60 days. The settlement agent will in turn refund the individuals or entities that paid the congestion relief fee. The Clerks will jointly develop uniform guidelines for the return of the fee within 60 days.

Sellers who sold their property (settled) on or after January 1, 2008 and paid the higher tax rate should call their settlement agent or the NVTA at 703-766-4650 for additional information. Additional information on the return of taxes and fees collected can be found at www.hb3202.virginia.gov and www.thenovaauthority.org.

(via Dulles Area Association of Realtors®)

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Update #2 To Grantor’s Tax Refunds

This just in from the Northern Virginia Transportation Authority (NVTA) regarding Grantor’s Tax (Congestion Relief Tax) refunds:

"Some news media outlets are reporting that it will take “three years to refund monies” collected by NVTA.

This is INCORRECT and a misinterpretation of the memo posted on the NVTA web site.

While it may be challenging to track down SOME taxpayers, it can be done and will be done within a few months.

For those rare cases when we will not be able to track a taxpayer down, the law requires that any UNCLAIMED monies be held in trust for up to three years and if unclaimed will, by law, revert to Virginia’s Literacy Fund. 

It will NOT take three years to refund this money. Taxpayers have up to three years to claim monies if they are not automatically refunded.

Please adjust your reports immediately.  Reporting inaccurate information is unnecessarily upsetting residents and taxpayers. 

We continue to ask that taxpayers be patient, hold onto their receipts and wait for further instructions which will come soon."

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

Update To Grantor’s Tax Refunds

Official Press Release From NVTA Regarding Today’s Court Ruling

Grantor’s Tax Update – Court Rules NVTA Taxing Powers Unconstitutional

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:

Read more

Update #2 To Grantor’s Tax

During my closing/settlement today, I spoke with the settlement attorney regarding the Grantor’s Tax. He told me that the clerks of all the local courts in Northern Virginia said that sellers are still required to pay the new Grantor’s Tax because the courts have not been told otherwise by the Virginia Attorney General. Once they hear from the Attorney General, they will let everyone know.

So if you’re settling in the near future, be prepared to pay the higher Grantor’s Tax, but keep an eye out for what happens over the next few weeks.

How To Get A Refund On Your Grantor’s Tax

If you sold your home in Virginia after December 31, 2007 and paid the higher Grantor’s Tax rate ($5 per $1000), you may request a refund on your Grantor’s Tax of the difference between the old rate ($1 per $1000) and the new rate.

The NVTA is currently handling the requests two ways – by phone (per locality) or by email. For the list of numbers for each locality, click here. If you wish to email the NVTA, here is their email: TheAuthority@thenovaauthority.org.