Grantor's Tax - Update on Refunds
Given the Virginia Supreme Court’s finding that the Northern Virginia Transportation Authority (NVTA) cannot impose taxes, we will all be receiving questions about the additional grantor's taxes that have been paid to the Authority. Northern Virginia Association of Realtors has communicated with local clerks of the court regarding anticipated refunds on grantor's taxes paid since January 1, 2008.
The Virginia Court Clerk’s Association has asked the Virginia Attorney General for an opinion as to when it should stop charging the tax, as the Supreme Court order does not become effective for 10 days. The Attorney General will respond by Monday or Tuesday.
The Northern Virginia Transportation Authority (NVTA) has 10 days to ask the Supreme Court to reconsider its ruling, and NVTA staff plans to make that request. However, given the unanimous vote, NVAR does not think the request is likely to be successful.
Local tax departments will be working with NVTA on a refund plan. The NVTA is collecting and holding those funds. Individuals who have paid this tax will eventually be asked to write to the NVTA for the refund and present a recording receipt. If the person does not have the receipt, the county clerk’s office will be able to obtain a copy.
In the meantime, the legislature and the Governor are looking at the next steps regarding transportation funding.