VIRGINIA - In a speech Wednesday, Virginia Governor Glenn Youngkin proposed ending Virginia’s car tax, or the local personal property tax, calling it a “hated” tax in the Commonwealth.
The call for ending the tax came as Youngkin unveiled his “Unleashing Opportunities Budget” proposal on December 20th, though his proposed budget does not include the elimination. Instead, Youngkin called on the Virginia General Assembly to eliminate the “hated” tax.
The local personal property tax in Virginia varies by county and is calculated on the assessed value of Virginians’ cars. In Accomack County, that rate is set at $3.63 per $100 assessed value in Chincoteague, and $3.72 per $100 for the rest of the county, according to Accomack County’s online tax rate breakdown.
"The car tax belongs in the trash can, not in your mailbox," Youngkin said during his speech today.
Though the car tax elimination is not included in the official budget proposal, Youngkin does propose slashing income tax by 12% across all income brackets, with lower-income Virginians eligible for further tax breaks. The Governor says those cuts would be offset by a nearly 1% increase in state sales tax, from 4.3% to 5.2%.
Youngkin suggested similar offsets could be accomplished if the car tax were to be eliminated, saying local governments across Virginia could also raise their sales taxes.
