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Create A BlogFauquier County’s next move, “without raising taxes?” |
Posted at Don Khoury's Blog by Donald Khoury
Jan. 10, 2008
Categorized in: Real Estate
Fauquier County’s next move, “without raising taxes?”
In 2007, the Virginia Assembly’s answer to the issue of transportation was the Transportation Reform Act, which included a tax increase on residents and property owners, “without raising taxes.” I am sorry; did someone just fall off the banana boat? Let us look.
Homes, land, and vehicles in Fairfax, Arlington, Loudoun, and Princes William counties as well as the cities of Fairfax, Falls Church, Alexandria, Manassas, and Manassas Park are currently affected by the “reform act.” “The funds collected will stay in Northern Virginia and will go towards projects to ease traffic congestion throughout the region.” The fees are as follows:
Congestions relief fee: an additional 40 cents for every $100, on the sales price of any “real property” Talk about kicking someone when they are down, this is truly a lesson in politics. Example, in 2005 let us say my home’s “market value” was $400,000. Now, let us assume that due to circumstances beyond my control, today’s “market value” is $350,000. I, as a fellow owner of real property in the county, am affected by market conditions just like every other owner. Therefore, having to sell today, my net after sale is $50,000 less than in 2005. My bad.
Oh, but wait, the Northern Virginia Transportation Authority is in action. The Grantor Tax, a tax due to “the government,” in 2005 or 2006 was 10 cents for every $100, based on the sales price of a parcel of “real property.” Using the Grantor Tax rate from 2005-2006 for today’s sale, I, the seller would pay $350, ($400 if sold in 2005 based on 2005 market value). Today I, the seller, without a tax increase, owe the “government” 50 cents on every $100 or $1,750, based on the sale occurring at “today’s market value.” The national government is worried about inflation in the future, I am worried about paying off my loan, and somebody took my $1,400, “without a tax increase.”
Motor vehicle rental tax: 2% of the rental rate: Over a 2 year period, on average, I will rent a vehicle for 10 days. 10 x $50 per day, oops, someone took my $10.
Transient occupancy tax: 2% of room rate. In an effort to acquire continuing education, and trying to “be green,” I rent a room for three nights instead of driving 2 hours each way into Washington. Therefore, I spend $900 for three nights to save to the environment and my time, great, but someone charged me a 2007 tax of $18. Without a tax increase, some has my $18.
Sales tax on auto repairs: 5% of labor charges: 40 hours labor at $40 per hour equals $1,600. Somebody has my $80.
Safety Inspection: $10
Vehicle registration fee: 1% of value, a one-time fee: Register a vehicle valued at $30,000, there goes another $300.
Regional registration fee: $10: Is this an annual fee, per vehicle? There goes $30.
So, I have sold my property, my pocket is $1,848 lighter, and oh, by the way, the seller of the home I’m purchasing just has gone through the same, “no tax increase,” they are upset, and they want me to pay $2000 more for their property because they do not have the money to close. Oops, there is $4,000 net, or $5,000 gross money…due to income taxes. How about the short sale, the foreclosure, the bankruptcy, the families? If that is “no tax increase,” please Mr. Legislator, do not raise my taxes.
The aforementioned counties and “localities opted in to this funding program. What will Fauquier do? The Virginia General Assembly Is Now In Session!
