The car tax is such a hated part of living in Virginia that Governor Jim Gilmore was elected on the platform of getting rid of it back in the 90s. He was unable to fully accomplish that goal because local governments still collect a car tax.
Now Governor Glenn Youngkin has a proposal that would offer state rebates to provide relief for the locally imposed car tax.
"This is a step to make sure that approximately 1.9, so almost two million, Virginians will be able take relief on the amount of money that they are paying for their personal property tax," says Senate Republican Leader Ryan McDougle. He called it "candidly the most hated tax in Virginia, the car tax."
Democrats say car owners will still have to pay a car tax, even if the money is offset by tax credits.
Senator Creigh Deeds is a Democrat from Charlottesville who says the governor's proposal is dishonest. "It is a shell game because you are moving tax dollars from one pocket, the state taxpayer, to the local taxpayer. I think a better approach would be if you really wanted to do away with it, do away with it. Change the Constitution."
Democrats control appropriations and finance committees in the General Assembly, so it looks like the governor's proposal may hit a roadblock as lawmakers craft their version of the budget.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
