Commercial Transportation Tax

Commercial Transportation Tax

The 2007 Session of the Virginia General Assembly enacted state legislation that provided a number of new sources of revenue for transportation purposes. Among other things, that legislation established a separate classification for certain commercial and industrial property within the Northern Virginia Transportation Authority (“NVTA”) and the Hampton Road Transportation Authority. Localities within those two transportation authorities may now impose a property tax on commercial and industrial property and the revenues from any such levy must be used exclusively for transportation purposes that benefit the locality imposing the levy.

Fairfax County lies within the boundaries of NVTA, and pursuant to that 2007 state legislation, the County is authorized by law to separately classify certain commercial and industrial property for the transportation tax. On September 10, 2007 and as amended on December 3, 2007, the Fairfax County Board of Supervisors advertised and held public hearings to adopt a local ordinance to implement that new classification. If your Real Estate Assessment Notice for 2008 includes the statement in the top right corner- Commercial Transportation Tax- this means that the parcel will be subject to any such tax rate the Board may levy.

As a result, beginning in calendar year 2008, the Board is able to adopt and levy a new Commercial and Industrial Real Estate Transportation Tax. While state law allows a maximum rate of $0.25 per $100 of assessed valuation to be levied, a tax rate of $0.11 per $100 of assessed valuation has been approved in the FY 2009 Adopted Budget. The revenue raised will be used for transportation purposes in Fairfax County, subject to appropriation by the Board of Supervisors. These taxes would be collected at the same time and on the same bill as normal General Fund taxes (i.e., in two installments, due July 28 and December 5).