It’s called the single most-hated tax in Virginia. And now, the two candidates running for governor this fall are on board with chopping the car tax, but it would have hefty financial implications.
The tax provides major revenue for cities, towns and counties, which levy and collect it.
If lawmakers want to kill it at the state level, they will have to find a way to reimburse the localities for all that lost revenue.
The state estimates the price tag for repealing the car tax would cost between two and a half billion dollars... to three billion a year.
<((larry sabato - uva center for politics executive director 1:20-1:26)
“Lowering taxes is always popular. Always has been, always will be, although it causes fiscal problems for a state,” said Larry Sabato, UVA Center for Politics executive director.
Republican governor Glenn Youngkin tried not once, but twice, to repeal the car tax.
But the Virginia General Assembly--mainly state democrats--said otherwise during budget negotiations.