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Congestion Relief Tax Declared Unconstitutional

By
Real Estate Agent with Long and Foster Real Estate VA License # 0225089470

On February 29th The Virginia Supreme Court declared the Congestion Relief Tax unconstitutional.  This was a tax, levied on home sellers, making their typical GRANTORS TAX increase 500% on January 1st this year. 

What made it unconstitutional, was the fact that it was a tax levied by a COMMITTEE of LOCAL GOVERNMENT OFFICIALS (mayors, supervisors, etc) on SPECIFIC COUNTIES (FAIRFAX, PRINCE WILLIAM & LOUDOUN to name a few). 

The Commonwealth of Virginia's Constitution declares that the elected official at the STATE level are the only ones that levy taxes.

Home sellers in those counties targeted by the Congestion Relief Tax, can now breathe a sigh of relief.  If the tax was already paid at settlement, details on how to contact the Northern Virginia Transit Authority for a refund will be forthcoming.  And those homesellers who have not yet sold their homes, will no longer have to worry about this outrageous tax increase.

Obviously, the need for the money to improve Northern Virginia's infrastructure will not go away.  While it is just my opinion, I am sure that the State will find a way to take the money from EVERYONE in a constitutional manner.

Comments(4)

Anne Clark
Metro Referrals - Gainesville, VA

I was glad when this tax was repealed.  It seemed so unfair to tax only Northern Virginia for road improvements needed in our area when so much of our tax dollars go to other areas that needed road improvements in the state.

Oct 20, 2010 03:59 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Anne:  I was thrilled too.  My Mom sold her home during this tax and got her refund fairly quickly.

Oct 20, 2010 04:33 PM
Anne Clark
Metro Referrals - Gainesville, VA

I bet your Mom was upset that she had to pay that riduculous tax in the first place.  Glad she got a quick refund.  Wouldn't want to see her mad.

Oct 21, 2010 02:24 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA
You definitely wouldn't want to see her mad.
Oct 21, 2010 02:49 PM