Have you heard? Grantor’s Tax that will affect localities in Northern Virginia effective July 1, 2013. The good news is that this additional Grantor’s Tax does not affect our local area, but if you are conducting business in Northern Virginia, this will affect your Sellers!! The “Regional Congestion Relief Fee” will add an additional $1.50 per $1000.00 to the existing Grantor’s Tax of $1.00 per $1000 So the new tax will be $2.50 per $1000 in the following locales: City of Alexandria City of Fairfax City of Falls Church City of Manassas and Manassas Park Arlington County Fairfax County Loudoun County Prince William County Math Formula: Multiply the higher of the sales price or assessed value by $.0025 to get the correct amount of new Grantor’s Tax: Example: Sales price of $500,000.00 x $.0025 = $1250.00 in Total Grantor’s Tax to Seller It will be important to recognize this change when scheduling closings at the end of June, 2013. Closing and RECORDATION will need to take place prior to July 1 in order to avoid the increase in costs to the seller. For more information you can contact one of our Ekko Title offices or log on to the link below where you will find a detailed breakdown of all the changes to Virginia tax law: tax.virginia.gov/site.cfm?alias=ChangesandUpdatesFAQ#RegionalCongestionReliefFee
Posted on: Fri, 21 Jun 2013 17:28:54 +0000
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