Shrinking Revenue and Bigger Roads
May 22nd, 2008 categories: Real Estate News, Relocating
One of the many tasks our government (elected and otherwise) employees are responsible for is maintaining the roads. As I’ve routinely warned incoming clients, when it comes to day to day living in Northern Virginia, the “long pole in the tent” is transportation. With the area’s increasing population, and more and more cars on the road, traffic congestion seems to get worse every day. For commuters, getting to and from work can be a daily exercise in patience, patience, and more….yes, patience. In its attempt to bring in greater revenues to fund road expansion and improvement, agencies and politicians have had their sights set on increasing the homeowner’s grantor’s tax, which owners have to pay when selling their home in Virginia. 
In order to fund transporation improvements, not only are we going to see increases in our automobile related costs (motor vehicle rental tax, sales tax on auto repairs, vehicle safety inspections, etc.), but also place part of that revenue burden on the home seller. While we understand the need to improve/expand the roads (do we ever!), asking home owners to help foot that bill is questionable. But, as one of the Arlington County Board member said, “No one ever wants new taxes, but more people are recognizing that location is only valuable if you can get there.” The public has resisted efforts to increase the grantor’s tax. Voters rejected an increase in sales tax to pay for transportation in a 2002 referendum. Similary, following last year’s Northern Virginia Trasnportation Authority (NVTA) tax increase to pay for transportation improvements, the constitutionality of the measure was successfully challenged and overturned. Specifically, the Virginia Supreme Court ruled the General Assembly “did not have a constitutional basis to delegate taxation authority to NVTA.”
But, these efforts to squeeze the homeowner seems to know no end. In his call for a special June 23rd session of the Commonwealth’s General Assembly, to specifically address transportation challenges, one of the governor’s revenue proposals is an increase in the grantor’s tax by 25 cents. Opposed to this proposal is the Virginia Association of Realtors (VAR), specifically disagreeing with the statewide tax increase, which VAR fears unfairly taxes homeowners who won’t benefit from revenue generated. And, somehow, even if the increase in the grantor’s tax doesn’t survive this session, I’m sure we’ll be seeing it again real soon.
