NVTA refunds OK’d, but challenges loom
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WASHINGTON (Map, News) - The Northern Virginia Transportation Authority approved refunding at least $11.7 million in unconstitutional taxes and fees Thursday, beginning a major logistical effort that will stress its small staff and limited budget.

Authority members unanimously approved the measure without adopting a clear plan for distributing the money, which is expected to take weeks to develop.

“How well the refund process is executed will have a significant impact on NVTA’s credibility,” Executive Director John Mason wrote in a memo. “Importantly, it could have further impact on the confidence of the public and elected officials in going forward with future revenue mechanisms.”

Taxpayers have been asked to keep track of their receipts for the 63-day life of a plan that would have raised about $300 million annually.

The refund process could be led by the state or the NVTA, and the full logistics have not been worked out.

Complications already identified include operating a Web site for people to request refunds and tracking down any visitors who rented cars or stayed in hotels between Jan. 1 and March 3.

Communicating with the authority’s hundreds of tax collectors and reviewing thousands of transactions will complicate the process, as will locating people who sold property and left the region.

No reliable cost estimate has been conducted, but Mason’s memo said it is probable the price tag will climb into the hundreds of thousands of dollars.

That could wipe out the $1 million starting budget of the agency and force the state to pony up more money to reimburse the taxes, authority members said.

dgenz@dcexaminer.com


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Comments from Examiner Readers

8:15 AM MST on Wed., Jun. 11, 2008 re: "NVTA needs tax increases, fees from assembly to keep running"

Northern Virginia Dummies! said:
If you like higher taxes, vote for Gerald Connolly for Congress, 11th District. He loves higher taxes. So does Obama. You ain't seen noth'in yet!

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8:00 PM MST on Thu., Mar. 13, 2008 re: "Tax verdict may threaten park and sewer fees"

Examiner Reader said:
they also said the civil fees on driveing was going to be repealed to and the money collected paid back its already been passed to be repealed said it would be as soon as the gov sighns it that was 3 weeks ago and its still not been sighned i think the people that have paid money out on those stupid fines should sue for interest on the money as well if the gov is gone drag his feet and not sighn it to hold your money longer,they should have to pay the people interest.

12 agree | 1 disagree
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9:55 AM MST on Thu., Mar. 6, 2008 re: "Arlington transit projects to suffer under court ruling"

Abolish the NVTA said:
The situation demonstrates a complete failure to plan, effectively manage and account for some fairly simple issues. If the NVTA can’t handle the basics, how do we reasonably expect them to handle the terribly complex issues associated with Northern Virginia transportation? Fairfax County has already attempted to divert some $30 million of the NVTA funds to help balance their existing transit budget. How can we trust that future funds will be used as intended? The NVTA has failed in its mission. It has had its taxation powers invalidated as unconstitutional; and has been discredited with the public. It’s time to put this flawed, anti-democratic, unelected body to rest and move onto better solutions. Hopefully, our elected leaders will face these issues head on, learn from the failure of last year’s transportation bill and take the time needed to create reasonable, bi-partisan, cost-effective, long-term solutions without doing more end runs around the voters.

7 agree | 4 disagree
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8:59 AM MST on Wed., Mar. 5, 2008 re: "NVTA preparing refunds for unconstitutional taxes"

GMU92 said:
So now people have to go scrounging around for a car rental receipt that was probably tossed out weeks ago? And why do people have to present receipts for taxes paid on car purchases and registrations?...the state already has that data, it is their job to fix the mess. I still can't believe that they actually started collecting the taxes BEFORE the Virginia Supreme Court ruled on the matter. The ineptitude in this state is mind boggling.

8 agree | 3 disagree
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10:50 AM MST on Tue., Mar. 4, 2008 re: "NVTA struggles to stop tax collections"

SomeITguy said:
Got to love this one. The NVTA told people they were going to keep collecting while the court decided becauise they thought it was going to be upheld. Now they have no backout plan. I plan to sue for the interest on my money as well as the refund. They could have NOT collected the tax until the court announced it's decision and they would not be in this position.

23 agree | 21 disagree
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8:47 AM MST on Tue., Mar. 4, 2008 re: "NVTA struggles to stop tax collections"

Chambek said:
Never met a politician that didn't need more taxpayers money and less taxpayer interfearance. Snail mailing out instructions to stop collecting an illegal tax is faster than email? Yea - got it. Vote !

25 agree | 24 disagree
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11:37 AM MST on Fri., Feb. 15, 2008 re: "Transit agency tax projections to drop dramatically"

Examiner Reader said:
Because of these taxes imposed, I believe illegally, I will never sell my house (will rent instead) nor will I ever buy a new car in VA. I also use a mechanic shop in another state. Many of the slow times are slower on purpose! If a person sells because they can no longer afford to live here or to downsize due to a fixed income - VA will take even more $ of their lowered bottem line. There were double digit tax increases for a decade due to housing assessment increases - taxes have not come down - they went WAY up & are still there. VA Gov is just not getting EVEN MORE $ over the previous yr - so they make up new taxes in the guise of fees!! That's how the VA St. leg. supports their own downtrodden.

53 agree | 50 disagree
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7:47 AM MST on Thu., Jan. 10, 2008 re: "Transportation projects on tap for region"

Examiner Reader said:
Are the home owner sellers the only ones who travel in Virginia Roads, that they have to be the ones to pay this abussive penalty? and that on top of loosing lots of money in the actual real state market, and furthermore on money assessed but not received since the real market price is lower than the assessed value that milks also to the homeowners? An angered selling home owner

78 agree | 65 disagree
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3:30 PM MST on Wed., Jan. 9, 2008 re: "Va. justices question NVTA power to tax"

Reid Greenmun said:
HB 3202 is a cancer upon our Republic and must be abolished. HB 320 stands up all-appointed regional taxing authorities that citizen have no control over. Our state requires a regional referendum to ask the citizens if they desire to stand up a regional government. HB 3202 and other such bills seek a backdoor to avoid the effort required to earn the support of voters at the ballot box. The regional taxing authorities created by HB 3202 are a dishonest attempt to create taxation without representation.

88 agree | 91 disagree
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7:29 AM MST on Wed., Jan. 9, 2008 re: "Va. justices question NVTA power to tax"

terelli said:
Will this tax, which affects real estate transactions, help or hurt the current housing marketplace? Sellers (and those buying from builders) will have to pay 5x more than "usual"....which, in my situation, makes a 500 dollar tax go to 2500 dollars.

91 agree | 89 disagree
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5:28 AM MST on Tue., Jan. 8, 2008 re: "Va. attorney general backs transportation bill"

Loudoun Tea Party said:
County Resident has it all wrong. While I agree that the way the state devides up the taxes is unfair to NoVa, what is to stop them from giving us LESS now that we are taxing ourselves? Now we will pay for the roads in NoVa with the local tax and the roads in the the rest of VA with our income and gas taxes. Mark my words, Richmond will send NoVa LESS money now and they will justify it by saying that we have another revenue source.

75 agree | 75 disagree
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6:43 AM MST on Fri., Nov. 30, 2007 re: "N.Va’s ability to collect taxes for transit projects on trial"

Examiner Reader said:
What is the tipping point? All the taxes and fees, federal and state, county and city, for every thing imaginable. I give up, trying to be a working stiff and have a nice little house. Might as well live like in Russia. I pretend to work, and the government pretends to pay.

110 agree | 103 disagree
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7:31 AM MST on Tue., Aug. 28, 2007 re: "N.Va’s ability to collect taxes for transit projects on trial"

Examiner Reader said:
If non-elected government officials can raise/levy taxes, how can the public exercise it rightful recourse ? With elected politicians we at lease have the opportunity to vote them out, but with appointed officials, we are stuck with them for life.

184 agree | 178 disagree
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7:08 AM MST on Tue., Aug. 28, 2007 re: "N.Va’s ability to collect taxes for transit projects on trial"

Masonman said:
That's all we need, another layer of government to pick our pockets. Not sure about the rest of you but my family pays more than our fair share of taxes. The answer here is to better spend the money collected. Focus on the real issues, don't try to all things to all people.

169 agree | 176 disagree
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7:07 AM MST on Thu., Jul. 12, 2007 re: "Va. attorney general backs transportation bill"

County Resident said:
WFY - You are absolutely correct, but the alternative pushed by Kaine and the Taxocrats was to raise state taxes higher and send even more money to Richmond for distribution elsewhere. Any statewide tax increase is unfair to NoVA residents. If we need more tax dollars, raise them locally and spend them locally.

227 agree | 169 disagree
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6:39 AM MST on Thu., Jul. 12, 2007 re: "Va. attorney general backs transportation bill"

WFY said:
How delightful, we get the privilege of taxing ourselves more even though we get back much less than we send to Richmond. I'm tired of subsidizing the rest of the commonwealth.

192 agree | 174 disagree
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7:00 AM MST on Wed., Jul. 11, 2007 re: "Fee for vehicle repairs facing opposition from local authority"

Examiner Reader said:
Aren't taxes already high enough? I recently moved to the area, and know that Loudoun county will already charge $4600 per year on my property, and that I will be liable for approx. $2500 in transfer tax already. More taxes imposed on property sales will hurt the number of sales as people will hold onto property longer to outrun the cost of this newly proposed tax, thus harming the already struggling housing market. I agree with this article, too, that anyone with half a brain cell will simply drive to a neighboring county in order to get services at a reduced rate. By imposing taxes on services, you will simply push those providing those services in the affected counties out fo business as customers move outside of the counties affected. Instead of levying new taxes, let's take a look at how the money is currently being spent, especially with an audit of cost overruns on current projects and overhead that is going nowhere (or into someone's pocket) instead of into our road

208 agree | 176 disagree
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