Dan Genz, The Examiner
2008-06-02 07:00:00.0
Current rank: Not ranked

WASHINGTON -

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