Bulletin: VA2013002

Dear Associates:

As part of the recently passed transportation-funding bill, a new fee was added to the Virginia Recordation Tax. Effective July 1, 2013, the Regional Congestion Relief Fee of $0.15 for each $100 of consideration will be imposed on each deed, instrument or writing which conveys real property. This Fee is structured similarly to the current Grantor’s Tax although it is our assumption that the Clerks will expect that it be documented and tracked as a separate fee.

Currently the Fee is only applicable to real property located in Planning District 8 (Northern Virginia). Planning District 8 is comprised of the counties of Arlington, Fairfax, Loudoun and Prince William, the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park, and the towns of Dumfries, Herndon, Leesburg, Purcellville and Vienna.

There has been some confusion as to whether the Fee also applies to Planning District 23 (Hampton Roads). It is our understanding that at this time, the Fee does not apply to any of the Hampton Roads jurisdictions.

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