by Dick Hall-Sizemore

Governor Youngkin has taken on the car tax again, sorta. Rather than attack it directly, he proposes a Rube Goldberg process for some Virginians to get some relief from the car tax.
Here is how it would work: Individual taxpayers with a federal AGI of $50,000 or less would get a refundable credit of $150 or the amount of car tax actually paid to the locality, whichever is less. For married couples filing a joint return, the credit would be $300 or the actual amount paid to the locality, whichever is less. https://budget.lis.virginia.gov/get/budget/5050/HB1600/ (p. 731)
But, there is a catch. An individual would not be eligible for such credit if his or her county or city increased its car tax rate more than 2.5 percent over the rate it imposed the previous year. The governor seems to think this is a cap on the annual increase enacted by localities, but it is not. It is a penalty imposed on the residents of a locality that increases its car tax rate by more than 2.5 percent.
All this would be paid for over the next three years with a $1.1 billion fund created out of current surplus revenues.
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