This year’s budget could include a one-time measure meant to keep the vehicle tax from skyrocketing.
In his monthly newsletter. Mayor Justin Wilson outlined a unique set of circumstances that, if left unchecked, could see Alexandrians’ vehicle personal property tax skyrocket.
“Alexandria’s second-largest General Fund revenue is the vehicle personal property tax,” Wilson said. “As a local tax assessed on vehicle owners annually, based on an assessed value, there is perhaps no tax more hated in the Commonwealth of Virginia.”
Wilson said in Fiscal Year 2021, the city collected $36.5 million from vehicle owners to provide for a total of $60 million of total general fund revenue.
The tax on vehicle is generally fairly steady, but Wilson said changes in the vehicle market has caused that value to increase dramatically and, with it, the associated vehicle personal property tax.
According to Wilson:
Now, the City Council is grappling with a challenging aberration in this revenue source. Under normal circumstances, the valuations of vehicles do not increase. In 2018 and 2019, only about 1% of Alexandria’s registered vehicles increased in value.
Yet, the pandemic has caused chaos in the used car market place. Last year, many Alexandrians saw increases in the value of their cars. This year, this phenomenon was projected to continue, as the City Manager’s proposed budget assumed an 8.5% increase in revenues.
Wilson said the current estimates are that vehicle values would increase by an average of 26% for 87% of the vehicles in Alexandria.
“This is extraordinary,” Wilson said. “To protect taxpayers, the City Manager has brought to the Council a proposal for one-time relief for vehicle owners.”
The proposal from City Manager Jim Parajon would have the city assess only 77% of the Fair Market Value of vehicles to counter-balance the Covid related upswing in value. The proposal would provide no 2022 tax for vehicles assessed at $5,000 or less, and cars valued higher would still have a smaller amount of relief from the tax.
“This proposal provides all vehicle owners with tax relief, while reserving the greatest relief to vehicles with the lowest valuations,” Wilson said. “It is hopeful that the used car market will get back to normal next year. Council will determine their approach to this proposal later this month.”
Recent Stories
The biggest news throughout the region was the smoke from the Canadian wildfires that descended on Wednesday and stayed through yesterday. Air quality reached dire levels and the City of…
The Director of the Federal Housing Finance Administration visited Southern Towers in the West End this week, signalling to housing advocates that years of protests against rent hikes and evictions…
(Updated 1:15 p.m.) The Mount Vernon Avenue Bridge was closed to traffic due to police activity, though as of 1:15 p.m. is has reopened. A foot pursuit across the Mount Vernon…
A 4 BD/3 BA updated home with hardwood floors, covered porch and remodeled lower level is featured in Just Listed.
Are you seeking a confidential space where you can explore your emotions, overcome challenges, and find inner peace? Look no further than our dedicated psychotherapy service! We understand that life can be overwhelming at times, and we’re here to support you every step of the way.
At Peaceful Mind Solutions, our passion lies in helping individuals like you navigate life’s complexities and find the strength to thrive. Our skilled and compassionate therapist is committed to creating a warm, non-judgmental environment where you can express your thoughts and feelings openly. With our personalized approach, we tailor each session to address your unique needs and empower you to overcome obstacles.
Through evidence-based techniques and a deep understanding of the human mind, our therapist will guide you on a transformative journey of self-discovery. Whether you’re dealing with anxiety, depression, relationship issues, or simply seeking personal growth, we’re here to provide guidance and practical tools for lasting change.
Time flies when you’re having fun! The T.C. Williams High School Class of 1973 will hold its 50th reunion July 21-23, 2023 in Alexandria. All graduates and their adult nears and dears are welcome. Events include a Friday evening icebreaker, Saturday dinner dance, and a Sunday brunch. For more information: tcwilliams73.com, 770.789.3534.
