Real Estate Grantor Tax

Real Estate Grantor Tax

Changes to Real Estate Grantor Tax – July 01, 2013. This will affect Seller’s!

The Virginia General Assembly agreed with Governor McDonnell’s proposal on April 03, 2013 to partially fund transportation improvements in Northern Virginia with a 150% increase in the real estate grantor tax. This tax is a burden to the Seller when they sell a home. The previous rate was .10 cents per $100 and will be increased to .25 cents per $100 on July 01, 2013. For example, if a home is being sold for $600,000 the Sellers tax burden will increase from $600 to $1500. It is estimated that this will raise $30M to fund transportation projects in Northern Virginia.

The Virginia Association of Realtors (VAR) lobbied against the original proposal of 50 cents per $100 by digging into the numbers. They were able to get the increase reduced as they found the average grantor tax values used to calculate the revenue were from 2007-11. These were years that included a decline in values and are not representative of our market today.

While no one likes to see a rise in taxes, the funds are earmarked to be used on necessary transportation upgrades in and around Northern Virginia.

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