Subcommittee directs Department of Taxation to study repeal of Virginia car tax

Delegate Franklin presented House Joint Resolution 34, which directs the Department of Taxation to study methods to repeal Virginia’s personal motor vehicle tax and to analyze ways to backfill nearly $4 billion in lost local revenue.

Administration representatives, including the deputy secretary of finance, said the administration supports a study and that the Department of Taxation is prepared to conduct the analysis. The Virginia Association of Counties asked to be consulted so local voices would inform any replacement revenue strategies.

After brief discussion, the committee reported the resolution to the next stage on a 4‑1 vote. Committee members noted the significant fiscal implications and the need for detailed backfill proposals before any repeal would be feasible.

Next steps: The Department of Taxation will be asked to undertake the study and consult local governments as specified in the resolution; any legislative change would require further committee and appropriations review.