Virginia governor sets path for tax refunds

| Friday, March 28, 2008

Virginia Gov. Tim Kaine has signed legislation to issue refunds for “unconstitutional” taxes and fees collected by the Northern Virginia Transportation Authority for transportation projects.

Kaine signed HB1578 into law on Tuesday, March 25, less than a month after the Virginia Supreme Court ruled it unconstitutional for the General Assembly to delegate power to regional authorities to impose taxes and fees.

The NVTA began collecting several taxes and fees Jan. 1 as part of a statewide transportation funding bill, HB3202, approved in 2007.

Refunds for specific taxes and fees paid to NVTA are described as follows:

  • The Department of Motor Vehicles will return a 1 percent initial vehicle registration fee and a $10 registration fee by mail beginning April 1. Call (866) 368-5463 to update your address information with the DMV.
  • Circuit Courts will refund to settlement agents the real estate grantor’s tax within 60 days. The agents will, in turn, refund the individuals. Call your settlement agent or call the NVTA at (703) 766-4650 for more information.
  • The Virginia Department of the Treasury will refund the 2 percent vehicle rental tax; the 2 percent transient occupancy tax; $10 safety inspection fee; and, the 5 percent sales tax on motor vehicle repairs. Information will be made available online at www.trs.virginia.gov. After April 1, call (804) 278-0817.

Another hot-button issue with the 2007 statewide transportation bill has been the “abusive driver fees” collected for transportation projects and safety programs.

Gov. Kaine signed SB1 and HB1243 into law on Thursday, March 27, to repeal the abusive driver fees.

“After six months of implementation, it was clear that the fees did not improve safety of Virginia highways,” Kaine stated in a press release.

The DMV will refund abusive driver fees and waive any outstanding fees collected under those laws.

Individuals who had their driving privileges revoked because of failure to pay abusive driver fees are eligible for reinstatement.

For additional information about refunds of the abusive driver fees, call (804) 225-2376.

Additional information about the 2007 transportation legislation HB3202 is available online at www.hb3202.virginia.gov.

For more information on legislation in Virginia in 2008, click here.

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