Richmond, VA – Lieutenant Governor Winsome Earle-Sears says Virginia Democrats missed their chance to end one of the state’s most unpopular taxes — the annual car property tax.
Speaking at Norfolk State University, Sears said Governor Glenn Youngkin had included a proposal in his budget earlier this year to eliminate the car tax, but Democratic lawmakers rejected the measure.
Sears accused her political opponents of hypocrisy after Democratic candidate Abigail Spanberger recently vowed to repeal the tax if elected governor.
The lieutenant governor argued that Democrats had already had the opportunity to do so, noting that “we had the money” and that the governor’s budget would have allowed for its repeal without cutting essential services.
What the car property tax is
Virginia’s car tax, officially called the personal property tax on vehicles, is an annual levy assessed by counties and cities on the value of cars, trucks, and motorcycles owned by residents. Localities determine the rate, which can range from 3% to 5% of a vehicle’s assessed value, and bills are typically due each fall.
The tax dates back decades and has long been a point of contention in Virginia politics. Former Governor Jim Gilmore campaigned to phase it out in the late 1990s, but the state never fully eliminated it, leaving local governments reliant on the revenue.
Funding and political debate
Revenue from the tax helps fund local schools, public safety, and infrastructure. Critics, however, call it burdensome and outdated, particularly as vehicle prices have surged in recent years. Supporters of repealing the tax argue that it punishes working families who need cars to commute.
Democrats in the General Assembly have said that fully removing the tax would create a large budget gap for cities and counties, forcing them to either raise other taxes or cut essential services.
What happens next
Governor Youngkin has said he plans to revisit the issue in the next legislative session, renewing calls to eliminate the car property tax if the state’s fiscal outlook allows.
Sears echoed that message in a post on X, writing, “When we win, we’ll end it once and for all.”
For now, Virginia drivers will continue to pay one of the last major personal property taxes in the nation — and the political fight over it isn’t going away.