News

Actions

Top Virginia Senate Democrat calls effort to scrap car tax 'dead on arrival'

Cars
Posted
and last updated

RICHMOND, Va. — Gov. Youngkin renewed his call for Virginia to eliminate the car tax during his State of the Commonwealth address Wednesday, but the top Senate Democrat called the idea "dead on arrival."

Youngkin did not include the idea in his official budget proposal, but called on lawmakers to work out what would be a complicated process, likely requiring a constitutional amendment.

"There is one topic not included in my budget submission last month that I challenge all of us to take up and resolve and that is to eliminate the single most hated tax in Virginia: the locally imposed car tax," Youngkin said Wednesday.

Retail Sales

News

Eliminating Virginia's car tax would be 'complicated'

Brendan Ponton

During a news conference earlier in the day, Senate Democratic Majority Leader Scott Surovell said Youngkin's idea didn't include enough specifics.

"Putting out a car tax proposal without making the hard decisions of putting it into your budget and explaining exactly what you want to do is not serious policy making, it's a campaign stunt," said Surovell.

Surovell cited the large amounts of revenue the annual tax brings in for local governments.

For example, in Virginia Beach, the tax is projected to bring in around $200 million with an average tax bill of about $400 in 2023.

Watch previous coverage: Eliminating Virginia's car tax would be 'complicated'

Eliminating Virginia's car tax would be 'complicated'

For his part, Youngkin has suggested localities raise the sales tax to offset the elimination of the car tax.

"We can eliminate the car tax, provide real tax relief, and keep our localities whole," he said.

Lawmakers have just begun their 60 legislative session with it currently remaining unclear whether there will be any serious consideration or debate on the tax.