There are typical costs that are associated with selling a home in Prince William County – everything from administrative fees and taxes to real estate commission. One closing cost item that sellers tend to have questions about is the Congestion Relief Fee (also known as the Grantor’s Tax). Sellers want to know “What is the Congestion Relief Fee?”, “How is it calculated?” and “Does it impact me?” Let’s take a look into each question.

What is the Congestion Relief Fee?

On July 1, 2013, the Virginia General Assembly passed legislation to help pay for roads, highways and mass-transit in highly populated areas in order to reduce congestion. This legislation was done by passing a ruling to increase the Grantor Tax in the form of a Congestion Relief Fee.

How is the Congestion Relief Fee Calculated?

The fee is calculated at $0.25 per $100 (or $2.50 per $1,000) of the sale price or fair market value, whichever is higher. So for example, on a $400,000 home sale the tax would be $1,000.

Does the Congestion Relief Fee impact me?

The increased fee is only applicable to certain geographic areas. Specifically, the Congestion Relief Fee will be imposed on properties located in Arlington, Fairfax, Loudoun and Prince William, as well as the cities of Alexandria, Fairfax, Falls Church, Manassas, Manassas Park and the towns of Dumfries, Herndon, Leesburg, Purcellville and Vienna. Additionally, certain counties and cities in the Hampton Roads area will also be subject to the increased tax. The seller is responsible for costs associated with the congestion relief fee.

Selling your home is a big decision. Make sure you review and understand all of your closing costs and fees. Your real estate agent or title company can answer any question you may have transaction fees and help to make your real estate closing as easy as possible.

For all your real estate needs, please contact Belinda Jacobson-Loehle at Jacobson Realty and Home Staging today.

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