Virginia General Assembly 2008

The new session is right around the corner, so expect more postings regarding bills and discussions relevant to the new session, real estate, eminent domain, property taxes, transportation and whatever else is related to real estate.

This bill, for example, submitted by David Toscano, that would (by my reading, not being a member of the Bar) be a huge boon to homebuyers in Virginia.

A. On every deed admitted to record, except a deed exempt from taxation by law, there is hereby levied a state recordation tax. The rate of the tax shall be 25 cents on every $100 or fraction thereof of the stated consideration of the deed or the actual value of the property conveyed, whichever is greater.

I might be wrong, but I read this this way – for example, if Mr. and Mrs. Homebuyer buy their home for $200k, the current recordation tax would be based on a percentage of the $200k. With the change in this bill, the deed could say that the transfer of property was completed for a consideration of, say, $100 – and the Homebuyers’ taxes would be much lower.

As an aside, how much do bills “Commending” somebody or something cost taxpayers?

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3 Comments

  1. Andrea December 10, 2007 at 11:48

    I am all for easing taxes on homebuyers, but I have to ask – if indeed, the taxes paid by buyers would decrease (potentially substantially), then what are the consequences of that lost revenue to the state? What does the current tax policy fund? Where does that money go, and how will we adjust to its decrease?
    Please forgive my ignorance, but I am just learning…

  2. Neil December 11, 2007 at 08:40

    Andrea raises a good question.

    IMHO the recordation tax is one of many new revenue sources that are more politically palatable. Not many people understand how the recordation tax impacts their lives and housing affordability. When those in the industry raise this issue they are perceived as a special interest rather than a trusted advisor.

    Tax policy in Virginia is not nearly as transparent as it should be. More and more the Old Dominion (and local governments) are funding its government enterprise by creative accounting. Why else would the GA have approved the Abusive Drivers fees that amount to a ticket of $3,000+.

    Less green eyeshades and more sunshine on government financing (State and Local) is needed.

  3. Charles M. Deliteris February 6, 2008 at 14:18

    Don’t you think you people are taxing us enough.
    If you people had to pay all these taxes you would’nt do this, what about all the single family incomes, but I can tell you really don’t care about us, its all about how much you can tax the people, so you can raise your pay and get rich off the people.
    This is a sorry state of the government.

    We are already paying $16.00 for a state inspection, now you want to add another $10.00 to it.

    Another 5% on car repairs have you had to pay for your car repairs lately, they charge about $85.00 to $95.00 per hour, this is going to put a great hardship on the lower to middle income family.

    2% gas tax, what are you crazy it already costs us $3.00 or more for gas, are you trying to ruine everybodys life, and put then in the poor house, its almost impossable to buy gas now with out taking out a loan.

    You should be ashamed of your self, trying to put the people who elected you in the poor house.

    Th elord above will judge you on what you are doing and you WILL have to answer to him for it.