In a past article, I wrote about Virginia’s final budget agreement that was signed by Governor Glenn Youngkin. It is a budget that decreases taxes and funds the core functions of government – which is why I voted in favor of it. But something that has gotten lost in the shuffle during public debate on the budget was the Governor’s and General Assembly Republicans’ strong desire to reduce or eliminate personal property taxes on vehicles – also known as the “car tax” – and Virginia Democrats’ complete and total resistance to doing so. I write this column as most readers have begun to receive their annual personal property tax bills in the mail, costing their families hundreds and even thousands of dollars.
By way of background, Virginia localities levy the personal property tax based upon the assessed value of your vehicle. Each locality sets its own rate of taxation, and the Commonwealth provides relief on the first $20,000 of a vehicle’s value. This applies to personal use vehicles only, as vehicles used for business do not qualify for this relief. Since the tax on your vehicle is based on its assessed value, it is assumed in many cases that the tax will decrease as time goes on. However, this is not always the case. If you bought a new car or truck before the COVID pandemic, in some cases, your tax bill may have actually increased in the years shortly after due to lack of supply or other market forces that arbitrarily increased the assessed value of your vehicle.
The car tax also affects purchasers’ desire to buy new vehicles. New cars and trucks are already expensive enough as it is, and if you are planning ahead for your annual tax bill, you might prefer to buy something that is used or that you know will have a lesser assessed tax value. This also has an effect on vehicle dealers and overall spending in the local economy. For first-time vehicle buyers, the first tax bill can come as quite the shock.
Virginia Republicans have put forth several meaningful efforts over the past several General Assembly sessions that would reduce or eliminate the car tax. These have come in the form of a constitutional amendment to abolish the tax, items in the budget to greatly minimize the impact of the tax, and legislation that would provide a tax credit for lower income Virginians that would help offset the cost of the local tax. All were shut down by General Assembly Democrats. In fact, a Senate Democrat – representing part of Northern Virginia – referred to efforts to decrease or eliminate this tax as purely “gimmicks.”
It is true that localities currently rely upon the car tax to fund important local government services, such as education, infrastructure and maintenance, and other core functions of local government. However, instead of coming to the table to discuss how Virginia might find alternative funding sources for these needs, Virginia Democrats would rather stick to the status quo. It is clear that Democrats have little interest in providing you meaningful tax relief or finding ways to lessen the burden of taxation on your family, but General Assembly Republicans will continue to push for any and all relief.
As the Delegate representing the 42nd House District in the Virginia General Assembly, your concerns are my greatest priority. If ever I may be of assistance to you and your family, please do not hesitate to reach out to me at DelJBallard@House.Virginia.Gov. You can also follow me on Twitter @JasonBallardVA or like my Facebook page, Jason Ballard for Delegate, to keep up to date with what I am doing in Richmond and in our community on your behalf.
Delegate Jason Ballard Virginia General Assembly
