by Jon Baliles
A reader alerted us this week that if you have not yet gotten your personal property tax bill (car tax) from the city of Richmond, you soon will — and it will be notably higher than last year unless you bought a newer model of drive a jalopy.
The city receives roughly $16.7 million per year from the state to provide for car tax relief originally established by the state in 1998 (which is a whole other topic for another day). During and after the pandemic, car values rose as the demand for used cars skyrocketed and higher tax bills followed accordingly. City Council first approved the Mayor’s “step-stair” approach to tax relief in 2022 — a policy in which owners pick up a bigger share of the tax over the course of a few years. Last year, the tax relief rate was 36.6% in the city.
In the city, you pay $3,70 tax per $100 assessed value. Under the relief program, a car valued at less than $1,000 owed no tax. If your vehicle was assessed between $1,000 and $20,000, you received the partial credit and owed the balance. If your vehicle was assessed at $20,000, you received the credit in relief up to $20,000 but then owed full freight on everything over $20,000.
So a car assessed last year at $12,000 would owe $444 in personal property tax but got the 36.6% relief. That vehicle would have received a credit of $162.50 and the owner paid $281.50 in tax. Continue reading