New Year, New Taxes, New Forms for Virginia Real Estate in 2013

While the real estate market in the commonwealth is roaring ahead with the State sales up 18%, and prices up 12%¹, the Realtors are active in making sure that the voice of home-owners is heard and that the good news will continue in the Commonwealth.

One of the most important factors of a location is reaching it through the transportation system.  The Virginia Realtors are supporting Gov. Bob McDonnell’s transportation bill in order to facilitate adequate funding for our roads and transportation systems.  Revenues from the 17.5c/gallon gasoline tax, which was put in place in 1986, have been falling due to the improved efficiency of cars, and the increase in the use of alternative fuel vehicles.  Meanwhile, the transportation costs are increasing as the number of miles has risen, and due to increased asphalt prices.  This has created stress within the transportation budget;  funds are being diverted from public transportation and new roads to maintenance.  The Governor is proposing to get rid of the gasoline tax, and instead raise the sales tax by .8c.  This will result in a sales tax of 5.8% for most goods, which is lower than the surrounding states.  Sales tax revenues do grow with inflation, which means that the funds will be available to cover increasing costs.  This alleviates the transportation fund being dependent upon the stagnant tax revenues from the sales of the number of gallons of gasoline.   Also, registration fees will rise $15, and there will be an additional $100 fee to register an Alternative Fuels Vehicle.   All this results in the additional funds needed to keep Virginia’s roads & rails running efficiently, and keep commuting times reasonable in the bustling Commonwealth.

The Northern Virginia Association of Realtors (NVAR) has been busy again updating their standard forms.  Among other miscellaneous changes, the standard listing agreements and buyer agency forms which are used by the sellers and buyers to hire their Realtors have been updated.  Now these agreements will expire at midnight on the agreed date.  I thought that my work hours were long enough, as the contracts have always included weekends and time-frames which ended at 9pm each day.  The real estate contracts still use the 9pm time-frame for the expiration of contingencies etc.  Welcome to the 24 hour world of electronic communication!!

1.              Full report available at http://www.varealtor.com/sites/default/files/Virginia%20Monthly%20Report[1].pdf
2.         http://www.governor.virginia.gov/utility/docs/Transportation%20funding%20fact%20sheet.pdf