Va. Braces for Tax Hits

Fees From Transportation Bill Kick In Today

If you plan to sell a home, buy a car or get a vehicle repaired in Northern Virginia, it's going to cost a bit more starting today, because of the transportation bill passed by the General Assembly last year.

Lawmakers gave the Northern Virginia Transportation Authority the power to impose taxes and fees that are expected to raise as much as $325 million a year for road and transit improvements. About $75 million of the annual revenue will be earmarked for Metro and the Virginia Railway Express.

The new taxes are:

¿ A "congestion relief fee," or grantor's tax, of 40 cents per $100 of assessed valuation on the sale price of a house. The seller will be responsible for the fee. For a $500,000 home, the extra charge would be $2,000.

¿ A 1 percent "initial registration fee" based on the sale price of a vehicle. If a vehicle is bought from a dealer, the fee will be part of the purchase; if a vehicle is bought privately, regardless of where, the fee will be paid when the car is registered. For a $25,000 car, the fee would be $250.

¿ A $10 annual regional registration fee for all vehicles.

¿ A $10 annual safety inspection fee for all vehicles.