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Archive for the ‘GRANTOR’s TAX’ Category

The new landmark transportation law was passed by the Virginia General Assembly to raise new revenue to fund transportation initiatives across the Commonwealth (HB 2313). This law is effective July 1, 2013.

Among the increase in sales, use and fuel taxes is an increase in the grantor’s tax, or that tax imposed on transferors of real estate located in the Commonwealth of Virginia
However, the increased tax is only applicable to certain geographic areas.
Specifically, the tax will be imposed on properties located in:

  • Arlington County VA
  • Fairfax County VA
  • Loudoun County VA
  • Prince William County VA
  • City of Alexandria VA
  • City of Fairfax VA
  • City of Falls Church VA
  • Cities of Manassas VA and Manassas Park VA
  • Town of Dumfries VA
  • Town of Herndon VA
  • Town of Leesburg VA
  • Town of Purcellville VA
  • Town of Vienna VA
  • Additionally, certain counties and cities in the Hampton Roads area will also be subject to the increased tax.

The current tax imposed is .10/$100 of the sales price or fair market value, whichever is higher.

As of July 1, 2013, the tax is increased to .25/$100 (or $2.50/$1,000). This represents a 150% increase in the grantor’s tax.
For example, on a $400,000 sale, the tax is increased from $400 to $1,000.

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