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Good News for Sellers - Grantor’s Tax Increase on Hold

Good News for Sellers - Grantor’s Tax Increase on Hold
For those of you unfamiliar with the transportation bill and how it affects you, go to http://www.hrta-va.org/. The main concern we as Realtors have is the quintupling of the grantor’s tax. This tax is paid by home sellers and is normally $1 per $1,000 of the sales price. HRTA tried to raise it to a whopping $5 per $1,000!

First, they delayed the start of the Grantor’s Tax increase from April 1st to May 1st:

From Hampton Roads Realtors Association
February 25, 2008

The Hampton Roads Transportation Authority (HRTA) announced today that the implementation of new taxes and fees has been moved to May 1st.  This change was made in order to accommodate a 60 day notice requirement set forth in House Bill 3202, the comprehensive transportation bill which passed the General Assembly in 2007.

Among other things, HB3202 authorized the creation of the HRTA and a specific funding stream for the Authority to use on projects in Hampton Roads.  A major component of the funding comes from a $0.40 increase in the Grantor’s Tax.  Beginning Thursday, May 1st, the Grantor’s Tax for all cities and counties covered by the HRTA will be increased to $0.50 for every $100 or fraction thereof.  This tax is applied to the assessed value or sales value, whichever is greater, and paid at closing to the Clerk of Circuit Court in the appropriate jurisdiction.


 Now, the increase is delayed indefinitely:

From Hampton Roads Realtors Association
March 7, 2008

Following last week’s ruling by the VA Supreme Court regarding the taxation rights of the transportation authorities, there have been a number of meetings to try and determine the best course of action to solve Virginia ’s transportation crisis.  There are many rumors but very few solid decisions.  Some legislators are favoring a simple fix that would continue using the original funding stream passed last year but have the taxing authority placed back on the General Assembly.  Others proposed having the local governments take on the taxing authority.  There is also the possibility of a new plan which would include imposing a statewide gas tax and car sales tax along with other revenue sources to help fund construction in Hampton Roads and Northern Virginia .  With budget negotiations and judge appointments still being debated, it is unlikely we will see a transportation solution before March 8th when the General Assembly Session is scheduled to conclude.  Expect to see either an extended Session or possibly a special transportation Session.

Published Tuesday, March 11, 2008 7:50 AM by Kari Priller

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Kari Priller said:

Update on Transportantion Bill

Hampton Roads Transportation Authority – The HRTA voted Wednesday to stop meeting due to an unclear future and lack of funds.  Members of the Authority voted unanimously to halt any further spending and to request that the General Assembly repay the Authority’s debt of nearly $200,000.  The Hampton Roads General Assembly Caucus is scheduled to discuss the transportation issue during an upcoming meeting in Suffolk on April 3rd.

March 21, 2008 3:23 PM

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