Bill > SR6

This resolution requests the Department of Taxation to study ways to eliminate the personal property tax on certain qualifying vehicles, often referred to as the "car tax," which is a significant source of revenue for local governments in Virginia. The study will also involve evaluating alternative ways for local governments to generate revenue to compensate for the money lost if the car tax is abolished. This effort is part of a long-standing debate in Virginia about ending this tax, with previous attempts and plans dating back to 1998, though state budget shortfalls in 2002 led to a freeze in reimbursements to localities. The Department will analyze the financial impact on localities, explore different methods for ending the tax, research alternative revenue streams, and examine how other states that don't have a car tax fund their local governments. The Department is expected to complete its work and submit a report with findings and recommendations by the start of the 2027 legislative session.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/SR6