The Fairfax County School Board and several county water customers are joining the county government to request hundreds of thousands of dollars from Falls Church as reimbursement for overcharges from the city’s water service. Patricia Harrison, who was then the acting Fairfax County executive, sent a letter to Falls Church City Manager Wyatt Shields in late November outlining the county’s request for a $127,877 payment, including 10 percent interest, for “illegal taxes” it paid the city from 2007 to 2009.
The requests follow the Virginia Supreme Court’s decision not to hear an appeal of a decision in January by the Fairfax County Circuit Court, which ruled that Falls Church’s practice of transferring water revenue into the city’s general fund was an “unconstitutional, extra-territorial tax.”
The Board of Supervisors voted on Dec. 7 to seek the refund and, if necessary, file litigation, though Chairwoman Sharon Bulova said she hopes the matter can be resolved quickly and outside of court.
“If there is opportunity for us to resolve this with Falls Church without any further legal action, that would be preferable,” Bulova said.
However, if the county wishes to get a reimbursement on taxes paid in 2007, it must file a claim by Dec. 31 because of a three-year statute of limitations for tax assessments. The county may also request reimbursement from 2010 once it determines how much was overpaid this year, the executive’s letter said.
Several government facilities, schools and homes located in the eastern part of Fairfax County are water customers of Falls Church.
The Fairfax County School Board voted to take a similar course of action earlier this month, and is requesting $71,270 in overcharges, according to Paul Regnier, school spokesman.
Fairfax County officials based their reimbursement request on the difference between the water rates paid by Fairfax County customers — who constitute 92 percent of Falls Church’s water customers — and Falls Church customers.
Two local attorneys, Matt McConnell and John Bennison, have so far made one reimbursement request to Falls Church on behalf of a McLean resident, John Luria. Considering the properties that Falls Church counts among its customers, McConnell said hundreds of thousands of dollars could be at stake. The two attorneys say they have been retained by several local clients and are in discussions with property owners in Tysons Corner, and are still determining their best legal option — perhaps a class-action lawsuit.
Anyone wishing to get a reimbursement dating back to 2007 must also file a claim by the end of 2010, but could still file next year for calendar years 2008 through 2010.
In a statement, Falls Church City Manager Shields called the county’s claims “unusual and disappointing,” and acknowledged that the city had received a request from another plaintiff.
“The City will protect the interests of its taxpayers, and evaluate these claims very carefully to determine if they have any validity,” Shields said. “In the meantime, the City’s principal focus will remain on providing excellent water utility service at a reasonable price to its customers in the City and Fairfax County.”
