Fairfax County is again asking the state for money to offset anticipated reductions in resident vehicle tax payments.
At a meeting on Tuesday (Jan. 24), the Board of Supervisors unanimously approved a letter written by Chairman Jeff McKay for Gov. Glenn Youngkin, asking him to include money in his budget for localities to blunt the impact of a 15% decrease in car tax revenue.
“We all heard last year the complaints that came in. I don’t think people understand that we don’t set the value of cars. They are set by others,” Chairman Jeff McKay said. “So, the tool that we had in our toolbox was to automatically put a reduction in value on all those vehicles in the county. Even with that, most people’s…tax bills went up.”
Over the last several years, used car prices have increased dramatically, though they’ve started to come down in recent weeks. Because of that, many county taxpayers are paying significantly more in personal property tax — also known as the “car tax.”
Last year, the Board approved assessing vehicles at only 85% of market value in order to give some relief to county taxpayers. That came after Youngkin signed legislation giving localities express permission to do that, in accordance with the Dillon Rule.
However, the county relies on that money as part of its tax revenue to fund services. In 1998, Virginia passed the Personal Property Tax Relief Act, which dictates that the state should offer car tax relief and subsidize localities for lost revenue owed on the first $20,000 of a vehicle’s value.
But the amount of funding provided to localities hasn’t changed since 2007, and Virginia now provides 20% less relief. In other words, both taxpayers and the county government are getting significantly less money from the state than they did 16 years ago.
After cutting another 15% for fiscal year 2023, which began July 1, 2022, the Fairfax County board is asking to get more money back from the state — a request also made to the governor last year, McKay’s board matter notes.
Youngkin has suggested cutting the car tax entirely, but county officials have expressed some trepidation about the consequences unless the money is reimbursed. McKay said reimbursement might be possible now considering the state’s nearly $2 billion surplus.
“While either the state or county could eliminate car taxes all together, the state should honor its pledge of 1998 to eliminate the car tax while reimbursing local governments for lost revenue,” the letter to Youngkin says. “It is essential and possible, particularly as the state currently sits on a significant surplus, to allocate adequate funding to provide residents with effective personal property tax relief.”
Braddock District Supervisor James Walkinshaw argued that the state can’t truly claim to have a surplus until “the Commonwealth pays its bills…and this is an example.”
“If it doesn’t happen this year with the surplus that exists, it ain’t going to happen next year or the year after that,” he said.
It’s going to be a cold and rainy weekend in Fairfax County, thanks to Tropical Storm Ophelia. Tracking to make landfall in North Carolina today (Friday), the storm is expected to reach Northern Virginia tonight.
Qualtrics, a technology and data research company, has officially opened its doors in Reston. The company, which provides artifical intelligence-driven software to assist businesses with customer and employee “experience management,”…
Tysons Galleria’s commitment to serving up high-end retail continues with the recent arrival of three new clothing stores. A boutique from Italian fashion house Dolce & Gabbana is now open…
Fairfax County is considering a pilot program to support more murals in its commercial revitalization areas. The pilot program, called Paint It! Fairfax, was introduced at a Fairfax County Board…
WOW 1 DAY PAINTING brings people a fast, affordable, and high-quality solution for all of their interior or exterior residential and commercial painting projects. We respect your time as much as you do and provide the quality paint job you expect, in a timeline that is unexpected.
Schedule a consult today:
Are you interested in improving your running or race time?
Are you looking to build a social circle with healthy activities like running.
If this is you check out our new running club in West Springfield. At our running club our goal is to improve fitness and have fun.
The Active Bystander Tactical Emergency Casualty Care (TECC) Certification course, also known as Active Bystander, is the premier training program to prepare civilians for how to respond during an intentional violent event and to address life-threatening emergencies.
Similar to FEMA’s