Grantors Tax Increase / Congestion Relief Fee

Effective January 1, 2008 the following tax increases took effect:

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.

A 5 percent sales tax on auto repairs. Warranty work will be exempt.

A 2 percent car rental tax, adding about 80 cents to a $40-a-day vehicle.

A 2 percent hotel room tax, adding about $2.40 to a $125-a-night room.

The General Assembly also gave Northern Virginia governments the option of increasing the tax rate on shopping centers, office buildings and other commercial property by as much as 25 cents for each $100 of assessed value.
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