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Deadline missed for key refund of transportation tax
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WASHINGTON (Map, News) - Hundreds of people expecting big-dollar Northern Virginia property sales tax refunds will face longer delays than anticipated.
Government officials responsible for refunding the most lucrative of the unconstitutional transportation taxes failed to meet a May 23 deadline, saying the complicated process will linger into the summer.
“What took longer, quite frankly, is just making sure the proper parties that paid the tax are aware of this opportunity,” said Gary Clemens, Loudoun County Circuit Court clerk. While the General Assembly ordered clerks to complete sending the refunds by the deadline, an unofficial attorney general’s opinion said the law’s language did not forbid them from continuing the work.
If clerks did not continue past the deadline, Clemens said, “We risk people not getting their money back.”
Some settlement agents and property owners have been unaware of the refund drama, or have been tangled in foreclosure proceedings, and as a result, slow to participate.
The Virginia Supreme Court ruled the 0.4 percent tax on property sales and six other taxes and fees “null and void” in February, saying an unelected regional body, the Northern Virginia Transportation Authority, did not have power under the state’s constitution to impose the taxes.
But refunding the millions of dollars collected in January and February has proven challenging. The endeavor took settlement company MBH weeks to procure $462,000 in refunds for its Fairfax County clients alone, President Mark Carlson said.
“A considerable amount of manpower has been put into tracing this. We’re happy to do it to get the money back and it allows us to shine from customer service perspective.”
Refund checks have varied from a few cents to more than $60,000.
“This was a huge undertaking, and we’re trying to get the money back to the taxpayers as soon as possible,” John Frey, Fairfax County Circuit Court clerk.
Loudoun County has finished refunding more than 75 percent of the $2.2 million in taxes collected, but is still holding on to about $500,000 that needs to be returned to property sellers. Fairfax has completed about $4.1 million of the $4.6 million in refunds.
dgenz@dcexaminer.com
Comments from Examiner Readers
2:16 PM MST on Wed., May. 14, 2008 re: "Governor’s plan revives NVTA"
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1:41 PM MST on Wed., Mar. 26, 2008
re: "Kaine signs tax refund law; paybacks should start in April"
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6:57 AM MST on Tue., Mar. 25, 2008
re: "Taxpayers face different systems to receive $24 million in refunds"
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5:04 AM MST on Tue., Mar. 25, 2008
re: "Taxpayers face different systems to receive $24 million in refunds"
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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"
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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"
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9:06 AM MST on Thu., Mar. 6, 2008
re: "Northern Virginians brace for seven new taxes, fees"
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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"
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9:41 AM MST on Mon., Dec. 31, 2007
re: "Kaine promises no new taxes despite shortfall"
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9:35 AM MST on Mon., Dec. 31, 2007
re: "Northern Virginians brace for seven new taxes, fees"
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12:04 AM MST on Thu., Dec. 6, 2007
re: "Kaine promises no new taxes despite shortfall"
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Examiner Reader said:
I think the NVTA is tarnished. It can't continue. Kaine needs to come up with something else. Indeed, Northern Virginia and the Tidewater are the econonic engines of Virginia. We put more in the coffers than we get out.
7 agree | 2 disagree
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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!
8 agree | 5 disagree
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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.
8 agree | 3 disagree
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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.
6 agree | 3 disagree
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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 .......
5 agree | 4 disagree
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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!
4 agree | 4 disagree
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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.
3 agree | 2 disagree
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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.
4 agree | 3 disagree
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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
55 agree | 55 disagree
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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
67 agree | 61 disagree
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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
76 agree | 63 disagree
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