A plan to get rid of Virginia’s local tax on personal property, which is often referred to as the “car tax,” will not go far in the General Assembly, according to Democratic leaders.
“My opinion is: it’s dead on arrival,” said Democratic Sen. Scott Surovell, the majority leader in Virginia’s Senate.
Following Virginia’s election in November, the House of Delegates is now controlled by Democrats 51-49, and the Democrats have a 21-19 majority in the Senate.
While Republican Gov. Glenn Youngkin has called the car tax the “single most-hated tax in Virginia,” he will likely have a difficult time selling a repeal of the tax to Democrats.
Youngkin did not specifically put a car tax repeal in his budget proposal, but he has strongly urged lawmakers to consider the idea.
“Everywhere I go in the Commonwealth, people say to me, ‘Governor, I hate the car tax, can we get rid of it?'” Youngkin said in an interview with WTOP.
The annual tax can be fairly expensive, and it varies based on where people live.
For example, the car tax rate in Fairfax County is about $4.50 per $100 of assessed value. In Arlington County, it is $5, and about $5.30 in Alexandria.
“We can remove the car tax for folks and make sure that Virginians can own their car outright, as opposed to constantly feeling like they’re paying for it forever,” Youngkin said.
Youngkin has indicated that revenue generated from the tax could be replaced with a further increase in local sales taxes.
“We’re discussing a plan where all the localities are held whole,” Youngkin said. “They don’t lose out on this.”
According to Surovell, however, lawmakers don’t have enough information to move forward.
“The car tax in Fairfax County generates about $3,500 per student,” Surovell said. “I haven’t heard from the governor how he intends to replace that kind of money.”
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