WASHINGTON (Map, News) - Virginia Gov. Tim Kaine signed a law Tuesday that begins the refund process for the more than $24 million in unconstitutional taxes and fees the state collected earlier this year.

Residents who paid vehicle registration fees will begin receiving checks in early April, Kaine said as state leaders try to resolve the lingering fallout from the Virginia Supreme Court’s ruling last month that new transportation taxes and fees were unconstitutional.

The two vehicle registration fees and the property sales tax that make up the bulk of the tax revenue will be the easiest to return to taxpayers, Kaine said in the monthly “Ask the Governor” show on WTOP radio.

“Some of it will be refunded to you automatically,” Kaine said. “There are a couple of taxes where people will have to show that you paid it.”

Because hotel taxes, car rental taxes, car repair taxes and vehicle inspection fees were collected by hundreds of businesses across the region, including more than 1,000 auto dealerships, the state is relying on taxpayers to apply for their own refunds.

“It’s going to be hard to find everybody,” said Del. Dave Albo, R-Springfield. “The people who sold their homes will get their money back, but the people who paid the $10 inspection fee and the smaller taxes, that will be difficult.”

A new Web site, hb3202.virginia.gov, has been created to give residents and visitors a method for learning about the refunds and, later, applying for them.

But critics of the taxes, including Del. Bob Marshall, R-Prince William, who challenged the taxes at the state Supreme Court, contend the state should not make residents provide any paperwork for reimbursements.

Lawmakers remain divided over how to replenish the $300 million in annual funding for Northern Virginia transportation that the taxes and fees were expected to generate.

Kaine and Senate leaders say a regional approach will not be sufficient to fix the state’s larger transportation problems, but Albo and other House leaders are concerned additional statewide taxes won’t give Northern Virginia taxpayers enough results for their money. A special session is expected later this spring.

dgenz@dcexaminer.com

Comments from Examiner Readers

1:41 PM MST on Wed., Mar. 26, 2008 re: "Kaine signs tax refund law; paybacks should start in April"

Jason said:
Taxation without representation. Hello! We fought a war over this! I thought that the sales tax being raised to 5% was suppose to take care of all our road problems? Another government LIE! Keep drinking the Koolaid people. You won't be happy until you are shoved into a FEMA camp!

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9:24 AM MST on Wed., Mar. 26, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
To the Examiner reader who obviously does not know what a commonwealth is. Northern VA and Hampton Roads taxes have built all the roads and schools in the rest of the state. For every $1 I send in taxes to Richmond they send ony .25 back to NoVa for schools and roads. That means that you are living off of my .75 as welfare. So, now that we want more money you think it is unfair for us to ask for it? You are absolutely correct. The State of Northern VA would be a fantasitic idea. Only problem is that the rest of VA would turn into WVA and be dirt poor.

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6:57 AM MST on Tue., Mar. 25, 2008 re: "Taxpayers face different systems to receive $24 million in refunds"

GMU92 said:
What a colossal mess. They shouldn't have collected a dime until a ruling was handed down by the VA Supreme Court. It's gonna take 3 months to return property and registration fees? Good grief, that data is readily available to them. And now people have to go rummaging around for old receipts from car rentals and hotel rooms? You know some of these people will never know to apply and won't see that money ever again. Wow, the Commonwealth messed this one up badly.

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5:04 AM MST on Tue., Mar. 25, 2008 re: "Taxpayers face different systems to receive $24 million in refunds"

Abolish the NVTA said:
Are the victims of the illegal NVTA taxes going to receive market rate interest on the monies that were taken from them? After all, there is a time value to money. The NVTA apparently didn't have a very good accounting system in place if they can't issue refunds directly and efficiently. This is yet another example of their sheer ineptitude and arrogance. The NVTA should follow in the footsteps of their "sister" organization in Hampton Roads and shut down AFTER refunding the people's monies.

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10:04 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Chambek said:
If our elected officials would spend some time working out ways to spend OUR money better, we would not be in this predicament. Their answer to everything is to seek out a new revenue source. They have wasted lots of time and lots of OUR money throwing new taxes against the wall to see what sticks. Gov. Kaine shows little regard for Virginians. He is using use to advance his political career as a tax and spend democrat. I guess we really have only ourselves to blame - we put him in office. Fool me once .......

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9:50 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
NOVA sends more revenue to the State than it receives back. If the entire State isn't going to be taxed to fix this transportation crisis, then the formula should be changed so that NOVA isn't supporting the rest of the state. I support a gas tax increase - how would we even feel it when it's buried in the monthly 10 cent a gallon hikes we've had for the past two years? The other option is to cut spending. Just ignoring the issue is NOT an option. The House needs to govern!

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9:06 AM MST on Thu., Mar. 6, 2008 re: "Northern Virginians brace for seven new taxes, fees"

Examiner Reader said:
We are being taxed out of the area. The cost of living is getting out of control and I really don't know why that is always the answer to everything. Maybe they need to start looking into what they are paying themselves and start the cuts there.

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8:34 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
The General Assembly needs to approve a .5 cents a gallon gas tax. The gas tax has not been increased since the early 80's and the cost for maint. and everything else has increased. Lets get real it's economics.

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8:25 AM MST on Thu., Mar. 6, 2008 re: "Gas tax plan roils Senate debate over N.Va. transportation fix"

Examiner Reader said:
My comment regards the issues of raising money for road funding ONLY in the Northern Virginia and Hampton Roads area. Why the should the entire state have to suffer with any extra taxes if the only people to benefit are the ones in the two areas mentioned? How would citizens located in Central, South and Southwest Virginia personally benefit other than have less money to spend in an already high unemployment area? Maybe this talk a few years ago about how Northern Virginia was considering to be a separate entity from the rest of the State (Northern Virginia and Virginia) should be resurrected and re-hashed over again. You would then have two budgets.

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9:41 AM MST on Mon., Dec. 31, 2007 re: "Kaine promises no new taxes despite shortfall"

Examiner Reader said:
Just got to love Kaine's scare tactics. He needs to cut spending and take his pet project off the table to have any chance of passing a non tax raising budget. Chris

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9:35 AM MST on Mon., Dec. 31, 2007 re: "Northern Virginians brace for seven new taxes, fees"

Examiner Reader said:
Kaine is raising taxes just like Maryland's Gov. O'Malley. Thankfully Virginia has more sense and will elect a Republican governor in 2008. Chris

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8:52 AM MST on Mon., Dec. 31, 2007 re: "Northern Virginians brace for seven new taxes, fees"

Examiner Reader said:
Are you old enough to remember the most successful toyota commercial You got it ! TOYOTA ? Well remember what they said NoVa had new demographics of more liberal voters moving in from all over the country. Now you see what happens? Watch these little maggots squirm when they have to flip a few dollars more. Especially those in the government jobs, I mean they are the cheapest SOB's in the metro area./ Now I want to see when those Pentagon layoffs come how thy are going to get a compete for a real job/ They will have to compete with those illegals they wanted here for cheap labour. hahaha

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12:04 AM MST on Thu., Dec. 6, 2007 re: "Kaine promises no new taxes despite shortfall"

Examiner Reader said:
That old 70;s song is back "Here comes that Rainy day feeling again" Kaino will surely get his money after the Jan session opens, they do it the old fashioned way, they just up your taxes

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