Dan Genz, The Examiner
2008-03-04 08:00:00.0
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WASHINGTON -

Northern Virginia residents and visitors were still being hit with illegal taxes Monday as government officials struggled to halt the collection of $300 million worth of annual taxes and fees the Virginia Supreme Court ruled unconstitutional Friday.

The Northern Virginia Transportation Authority called an emergency meeting for Thursday to respond to the court decision stripping its taxing authority and officially cancel the taxes.

Arlington federal worker Stephen Schwartz, 29, said he was furious when told he would have to pay a $1,600 home sales tax bill Monday, after the court had ruled the taxes were illegal.

“This is not like the Brown vs. Board of Education decision where it takes a massive implementation plan [to end segregation in schools]. All they need to do is not take my money. It’s not complicated,” said Schwartz, who wanted to spend the money on a washer and dryer for his new Arlington home.

Because taxes are collected by a wide variety of people ranging from hotel managers to auto repair workers to county clerks, NVTA Vice Chairman Martin Nohe said eliminating the taxes immediately presents a difficult challenge.

“From an administrative perspective, it’s stopped,” Nohe said. “From a practical perspective, it has not come to a complete halt.”

Phone calls from taxpayers requesting information about refunds on the at least $8.3 million taxed so far have overwhelmed the small agency’s staff. Officials say a refund plan is being developed and asked for patience Monday.

Gov. Tim Kaine said Monday that anyone who paid the taxes should receive a refund and noted General Assembly leaders are working to restore the tax plan quickly, although a fix by the end of the session Saturday could prove too difficult.

“My belief is there need to be refunds and we’ve started to figure out that process,” Kaine said, “Refunds need to be made.”

Tax Commissioner Janie E. Bowen notified all auto dealerships to stop collecting a 5 percent auto repair tax in a letter mailed out Saturday morning, which agency spokesman Joel Davison called the fastest method available. E-mails would not have reached all the dealers, Davison said.

NVTA officials have collected at least $8.3 million in taxes since Jan. 1 and Northern Virginia officials have lamented that losing the tax revenue would stifle the state’s ability to build new roads.

State lawmakers are considering ways to restore transportation funding by a vote of the General Assembly, but are not sure they can fix the logjam without a special session.

dgenz@dcexaminer.com