Bill Sets Up Refund for Unconstitutional Road Taxes

By Eric M. Weiss

Originally published at 12:01 a.m., March 25, 2008
Updated at 2:48 p.m., March 25, 2008

Gov. Timothy M. Kaine (D) signed a bill Tuesday that sets up a process to issue refund checks to people who paid taxes levied by the Northern Virginia Transportation Authority, taxes that were later ruled unconstitutional by the Virginia Supreme Court.

But don't start checking your mailbox yet. It probably will take several weeks to work out all the details on how to return the estimated $13 million the NVTA had collected since Jan. 1.

"There have been no checks sent out yet," said Gordon Hickey, Kaine's spokesman. "They are still collecting the data."

The NVTA collected seven taxes and fees in Northern Virginia: a tax on home sellers; a 1 percent initial vehicle registration fee; a $10 regional registration fee; a 2 percent car-rental tax; a 2 percent hotel tax; a $10 safety inspection fee; and a 5 percent sales tax on motor vehicle repairs.

Kaine said in a statement that the bill "creates an open, public process for the return of taxes and fees paid by individuals to the Northern Virginia Transportation Authority."

Loudoun County Board Chairman Scott K. York (I), chairman of NVTA's Finance Committee, said the authority should continue shrinking until Richmond comes up with a solution.

York suggested that people who have paid any of the taxes and fees -- including those on car repairs, car rentals, hotel stays, new-car registrations and safety inspections -- keep receipts and check the NVTA Web site, www.thenovaauthority.org, for updates on refund policies.

Under the bill signed by the governor, the five circuit courts will jointly develop guidelines for the return of the home seller's, or grantor's, tax, within 60 days. The governor's office suggested that people who paid the tax call their settlement agent or the NVTA at 703-766-4650.

The Department of Motor Vehicles, which had not yet transferred any money to the NVTA, will send out refund checks directly. Guidelines for the return of the fees will be published by April 1. To update your address with DMV, call 1-866-DMV-LINE.

The other fees will be sent to the unclaimed property division of the Treasury Department, which will publish its refund guidelines by April 1. Information will be updated at http://www.trs.virginia.gov. After April 1, taxpayers can call 804-278-0187.

Tagged: Chairman Scott York, Gov. Tim Kaine, NVTA, transportation, VDOT

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