What happened to the Hampton Roads repair and fuel taxes after their start date was postponed from April to May 2008?

Subject

The Hampton Roads Transportation Authority

Plain-English summary

Hampton Roads initially postponed its repair and motor-vehicle fuel taxes from April 1 to May 1, 2008, but the taxes were invalidated before that new start date. The 30-day delay was intended to satisfy a 60-day public-notice requirement.

The original bulletin said affected taxpayers would receive forms and instructions or should register online, file monthly returns by the 20th, and submit the first returns by June 20 even if no tax was owed.

The official source later added the controlling development: on February 29, 2008, the Supreme Court of Virginia held the House Bill 3202 regional-tax provisions unconstitutional. The Hampton Roads repair and fuel taxes were therefore null and void. The separate Northern Virginia and Potomac-Rappahannock fuel tax was not affected.

What this means for you

• The May 1 start date and June 20 first-return date never became operative for these Hampton Roads taxes.
• This bulletin preserves the short-lived administrative plan before the court ruling.
• The existing Northern Virginia and Potomac-Rappahannock fuel tax remained separate.

Citations and references

• Virginia Tax Bulletin 08-2.
• House Bill 3202, 2007 Va. Acts ch. 896, as described in the bulletin and source preface.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 08-15

Original ruling text

On February 29, 2008, the Virginia Supreme Court ruled that the provisions of House Bill 3202 ( Acts of Assembly 2007, Chapter 896) allowing the Northern Virginia Transportation Authority and the Hampton Roads Transportation Authority to impose the Motor Vehicle Repair Labor and Services Sales and Use Tax (“Repair Tax”) and the Hampton Roads Transportation Authority to impose the Motor Vehicle Fuel Sales Tax were unconstitutional. Accordingly, the Motor Vehicle Fuel Sales Tax in the Hampton Roads Transportation Authority and the Repair Tax in both Authorities are null and void. The Motor Vehicle Fuel Sales Tax imposed in the Northern Virginia Transportation District and in the member localities of the Potomac and Rappahannock Transportation Commission is not affected by this ruling.

TAX BULLETIN 08-2

Virginia Department of Taxation

February 27, 2008
IMPORTANT INFORMATION REGARDING

THE HAMPTON ROADS TRANSPORTATION AUTHORITY

Motor vehicle repair labor and services sales and use tax (“Repair Tax”) and motor vehicle fuel sales tax: Change in Effective Date

On February 25, 2008, the Hampton Roads Transportation Authority announced that the taxes and fees it is authorized to impose by House Bill 3202 ( Acts of Assembly 2007, Chapter 896) will take effect on May 1, 2008, instead of April 1, 2008 .

Initially the Hampton Roads Transportation Authority voted to impose the taxes and fees effective April 1, 2008. However, to ensure compliance with the 60 day public notice requirement under House Bill 3202, the Hampton Roads Transportation Authority has decided on a 30-day delay in the imposition of the taxes and fees.

The Department of Taxation (“TAX”) is responsible for the administration and collection of both the Motor Vehicle Repair Labor and Services Sales and Use Tax (“Repair Tax”) and the Motor Vehicle Fuel Sales Tax. TAX has published the Guidelines and Rules for the Motor Vehicle Repair Labor and Services Sales and Use Tax (November 1, 2007) and the Guidelines and Rules for the Motor Vehicle Fuel Sales Tax (January 31, 2008) as required by House Bill 3202. These public documents can be found on TAX’s website, www.tax.virginia.gov . Taxpayers should note that these taxes will take effect in the Hampton Roads Transportation Authority on May 1, 2008, rather than on April 1, 2008, as stated in the Guidelines. As necessary, additional guidelines and rules will be published and posted on TAX’s website.

To the extent that TAX is able to identify those taxpayers potentially liable for these taxes, TAX will notify such taxpayers in advance of the effective date and supply them with updated forms and instructions. If a taxpayer is liable for one or both of these taxes and does not receive any information from TAX, he should register online at TAX’s website, www.tax.virginia.gov .

The returns and payments for both the Repair Tax and the Motor Vehicle Fuel Sales Tax will be due on or before the 20th day of the month following each reporting period. The first returns and payments will be due on June 20, 2008. Returns are due even if no tax is owed.

This change in the effective date of the imposition of these taxes in the Hampton Roads Transportation Authority does not affect the taxes and fees being imposed in the Northern Virginia Transportation Authority.

There is pending legislation in the General Assembly that would change the administration and collection of the Repair Tax. For information regarding the Repair Tax and the Motor Vehicle Fuel Sales Tax, please frequently check TAX’s website, www.tax.virginia.gov .

If you have any questions please contact TAX at (804) 367-8037.