Some Rural Areas Feel Slighted By Car Tax = Relief

From: Subject: Some Rural Areas Feel Slighted By Car Tax Relief Date: Sat, 22 Mar 2003 16:48:43 -0500 MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_000_013B_01C2F092.E64A0FA0"; type="text/html" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2600.0000 This is a multi-part message in MIME format. ------=_NextPart_000_013B_01C2F092.E64A0FA0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.virginiastar.net/archives/ar03_0212/cartax.htm Some Rural Areas Feel Slighted By Car Tax = Relief

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This page and = site=20 copyright =A9 2000, 2001 Scott County Virginia Star, Scott = County=20 Herald-
Virginian, Inc.

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Some Rural Areas Feel Slighted By Car Tax = Relief

Robert Cunard / Sharon = Ramos
Capital News=20 Service

When it comes to phasing out the state's car = tax, most=20 Virginians would say don't look a gift horse in the mouth. But = some=20 legislators, especially from rural areas, are ready to give that = horse a=20 swift kick.

They say rural areas got shortchanged by the = state's=20 1998 decision to slash the personal property tax on vehicles. A = computer=20 analysis by the Capital News Service shows why they feel that=20 way:

The suburban counties of Loudoun, Fauquier and Fairfax = in=20 Northern Virginia have received more than $1,500 per household in = car tax=20 relief over the past four years, the analysis found. But such = rural=20 counties as Lee, Henry and Grayson got less than $150 per=20 household.

"Two-thirds of the car tax relief goes to seven=20 localities," said Sen. William Roscoe Reynolds, D-Martinsville. He = has=20 sponsored a bill to repeal the Personal Property Tax Relief Act of = 1998 --=20 the Republican-inspired law that promised to eliminate the car=20 tax.

"It's clear to me that it (car tax relief) was a mass = transfer=20 of money from less-urban Virginia to urban Virginia," Reynolds=20 said.

For the time being, car tax relief is here to stay. = The=20 General Assembly has killed Reynold's proposal and six other bills = to=20 repeal or roll back the car tax cut. But the hard feelings among = the=20 bills' supporters are likely to resurface as the General Assembly = grapples=20 with the state's multibillion-dollar budget deficit.

The = car tax is=20 levied by local governments -- cities, counties and towns. The = 1998 law,=20 the centerpiece of Republican Jim Gilmore's gubernatorial campaign = and=20 administration, ordered local governments to reduce the car tax = bills by a=20 certain percentage each year -- with the state making up the=20 difference.

The car tax cut is currently at 70 percent;=20 consequently, the state last year had to compensate localities a = total of=20 $845 million. Those payments have exacerbated Virginia's budget = problems,=20 which were triggered by the sagging economy and lagging tax=20 revenues.

To plug the budget deficit, the state government = has cut=20 various services -- for example, by closing 12 Department of Motor = Vehicles offices. (Gov. Mark Warner and the General Assembly have = since=20 found money to reopen those offices.)

Some rural areas feel = they=20 have been disproportionately hurt by the budget cuts. In effect, = they say,=20 they have the worst of both worlds: Rural counties got the least = benefit=20 from the car tax relief but took a big hit from the state budget=20 cuts.

"There is no question in my mind that the car tax = [reduction]=20 has had an unfair impact on rural localities," said Delegate = Robert Hurt,=20 R-Chatham. "We get the short end of the stick."

Hurt should = know.=20 He represents parts of Pittsylvania and Henry counties and the = city of=20 Martinsville. From 1999 through 2002, PittsylvaniaCounty received = about=20 $418 per household in car tax relief; Martinsville, $290 per = household;=20 and HenryCounty, $146 per household.

Statewide, Virginians = have=20 saved a total of $2.3 billion on their car taxes over the past = four years=20 -- an average of $852 per household -- according to data from the = Virginia=20 Department of Taxation and the U.S. Census Bureau.

Suburban = counties in Northern Virginia and around Richmond saved far more = per=20 household than the statewide average. Rural counties in Southside = Virginia=20 and the western part of the state saved far less than the = statewide=20 average.=20

Delegate W. Benny Keister, D-Dublin, represents=20 TazewellCounty, which has received about $410 per household in car = tax=20 relief, and PulaskiCounty, which has gotten about $253 per = household. He=20 said the car tax cut was unfair to Southwest Virginia: "It takes = money=20 away from that region."

Suburban officials say there's a = logical=20 reason why they got the lion's share of the car tax relief: Their=20 residents had been paying far more in car taxes all = along.

For one=20 thing, suburbs tend to have high car tax rates -- more than $4.50 = per $100=20 value in Fairfax and other Northern Virginia localities. In = contrast,=20 HenryCounty has been taxing vehicles at just $1.19 per $100 value. = Moreover, suburbanites often own more expensive vehicles than = rural=20 residents.

Legislators from Northern Virginia make no = apologies for=20 how the car tax relief has benefited their constituents. They said = the car=20 tax deserved to be eliminated.=20

"The car tax is not justifiable as a matter of = policy,"=20 said Sen. William C. Mims, R-Leesburg. "It's a recurring tax that = has no=20 bearing upon, or no relationship to, the use of a vehicle. Someone = could=20 have a car that they use only to go to church each Sunday, and = they would=20 take the same amount of car tax as someone who is using or driving = 50,000=20 miles a year.

"So it's an unjustifiable car tax -- period. = We=20 shouldn't make policy based upon which counties get more or less. = We=20 should make policy based on taxes where it's = justifiable."

Delegate=20 Kristen J. Amundson, D-Mount Vernon, agreed with rural lawmakers = that=20 Northern Virginia benefited more from the car tax cut: "They're = absolutely=20 right."

But in funding for schools and transportation, = Northern=20 Virginia gets shortchanged, she said.

Delegate Richard H. = Black,=20 R-Sterling, said Virginians as a whole support car tax relief. = "Car tax=20 repeal is popular with the people in every corner of Virginia," he = said.

"Now, it's not popular with politicians in every = corner. But=20 if you ask the man on the street if he thinks he should be paying = the car=20 tax, he will tell, 'No!' -- whether it's in LoudounCounty or=20 BuchananCounty. The people don't like it, and they want it totally = abolished."

Many rural legislators agree.

Delegate Daniel W. Marshall, R-Danville, and = Sen. Charles=20 R. Hawkins, R-Chatham, conducted a survey and found that even = rural=20 Virginians want to kill the car tax. "People still support = repealing the=20 car tax," Marshall said.

Reynolds said that's because most = people=20 don't know the costs of the car tax reduction. "I do not believe = the=20 majority of Virginians understand the havoc it is playing with = local=20 governments' budgets."

Besides Reynolds, Delegate Mitchell = Van=20 Yahres, D-Charlottesville, proposed repealing the car tax = phaseout. His=20 bill died in committee, as did less drastic = measures:

Delegate=20 James M. Shuler, D-Blacksburg, wanted to roll back the car tax cut = from 70=20 percent to 50 percent.

Sens. R. Edward Houck, = D-Spotsylvania, and=20 Phillip P. Puckett, D-Tazewell, suggested scaling it back to 47.5=20 percent.

Delegate Clarence E. Phillips, D-Castlewood, = proposed=20 trimming the tax cut to 27.5 percent.

Delegate Watkins M. = Abbitt,=20 I-Appomattox, recommended rolling back the tax cut to a level to = be based=20 on the state's finances.

Reynolds, who has been a = legislator for 18=20 years, said the car tax repeal was "the most irresponsible policy = that=20 I've seen adopted while I've been a part of the General=20 Assembly."

He blames the car tax relief program for much of = Virginia's budget problems. To fund the tax relief, the state has = had to=20 cut money for law enforcement and mental health services, Reynolds = said.

As a result, state services are in a "downward = spiral," he=20 said. "The right way to go is for our government to fund basic = services to=20 its citizens."

Business Directory

Fairway = Ford

Daugherty=20 Bros.
Chevy-Jeep

Scott County's
2003 = Bridal=20 Guide

Your Right to = Know!
2003 = Freedom of=20 Information = Act

Chart/list of how each = locality=20 has benefited from the car tax relief program
Which localities=20 benefited the most, per household, from the car-tax = cut?

Rank	County/City	Total Car-Tax Cut 1999-2002	Households	Tax-Cut=20 Per Household
1	LoudounCounty	$103,177,497	59,900	$1,722
2	FauquierCounty	$31,193,650	19,842	$1,572
3	FairfaxCounty	$546,383,846	350,714	$1,558
4	FrederickCounty	$28,617,672	22,097	$1,295
5	ClarkeCounty	$6,070,875	4,942	$1,228
6	JamesCityCounty	$22,982,761	19,003	$1,209
7	AlbemarleCounty	$37,630,378	31,876	$1,181
8	PrinceWilliamCounty	$111,518,675	94,570	$1,179
9	ChesterfieldCounty	$106,779,023	93,772	$1,139
10	HanoverCounty	$35,304,787	31,121	$1,134
11	Poquoson	$4,566,553	4,166	$1,096
12	Fairfax	$8,414,349	8,035	$1,047
13	YorkCounty	$20,684,832	20,000	$1,034
14	SpotsylvaniaCounty	$31,964,774	31,308	$1,021
15	Alexandria	$62,341,050	61,889	$1,007
16	GreeneCounty	$5,569,325	5,574	$999
17	RoanokeCounty	$34,322,433	34,686	$990
18	DinwiddieCounty	$8,911,343	9,107	$979
19	Chesapeake	$68,136,658	69,900	$975
20	PowhatanCounty	$7,064,670	7,258	$973
21	ArlingtonCounty	$83,790,333	86,352	$970
22	FluvannaCounty	$6,995,568	7,387	$947
23	ManassasPark	$3,040,251	3,254	$934
24	PrinceGeorgeCounty	$9,460,594	10,159	$931
25	Suffolk	$21,563,747	23,283	$926
26	SouthamptonCounty	$5,407,358	6,279	$861
27	HenricoCounty	$91,707,496	108,121	$848
28	RappahannockCounty	$2,360,783	2,788	$847
29	Manassas	$9,916,290	11,757	$843
30	FallsChurch	$3,770,456	4,471	$843
31	VirginiaBeach	$126,235,577	154,455	$817
32	GoochlandCounty	$4,861,024	6,158	$789
33	SussexCounty	$3,180,310	4,126	$771
34	StaffordCounty	$22,636,782	30,187	$750
35	King = WilliamCounty	$3,605,326	4,846	$744
36	Isle of Wight = County	$8,370,785	11,319	$740
37	Salem	$7,328,027	9,954	$736
38	BotetourtCounty	$8,549,155	11,700	$731
39	Emporia	$1,597,567	2,226	$718
40	RockbridgeCounty	$6,076,644	8,486	$716
41	Franklin	$2,422,208	3,384	$716
42	CarolineCounty	$5,740,185	8,021	$716
43	Hampton	$37,887,954	53,887	$703
44	KingGeorgeCounty	$4,274,189	6,091	$702
45	EssexCounty	$2,803,103	3,995	$702
46	NewKentCounty	$3,426,871	4,925	$696
47	AlleghanyCounty	$3,562,668	5,149	$692
48	Lexington	$1,536,712	2,232	$688
49	MathewsCounty	$2,649,173	3,932	$674
50	NewportNews	$46,904,846	69,686	$673
51	Portsmouth	$25,338,179	38,170	$664
52	BedfordCounty	$15,692,037	23,838	$658
53	OrangeCounty	$6,590,059	10,150	$649
54	ShenandoahCounty	$9,014,665	14,296	$631
55	CumberlandCounty	$2,214,939	3,528	$628
56	RockinghamCounty	$15,880,035	25,355	$626
57	LunenburgCounty	$3,107,617	4,998	$622
58	GreensvilleCounty	$2,089,551	3,375	$619
59	BuenaVista	$1,564,531	2,547	$614
60	BuckinghamCounty	$3,260,909	5,324	$612
61	WarrenCounty	$7,335,810	12,087	$607
62	BrunswickCounty	$3,741,833	6,277	$596
63	Lynchburg	$15,016,529	25,477	$589
64	Petersburg	$8,087,221	13,799	$586
65	Richmond	$49,408,388	84,549	$584
66	AmeliaCounty	$2,466,918	4,240	$582
67	Roanoke	$23,807,697	42,003	$567
68	Charlottesville	$9,484,929	16,851	$563
69	Fredericksburg	$4,548,923	8,102	$561
70	NelsonCounty	$3,223,111	5,887	$547
71	Covington	$1,538,516	2,835	$543
72	GloucesterCounty	$7,075,943	13,127	$539
73	KingandQueenCounty	$1,431,110	2,673	$535
74	MadisonCounty	$2,520,081	4,739	$532
75	GilesCounty	$3,710,442	6,994	$531
76	AccomackCounty	$8,023,301	15,299	$524
77	WestmorelandCounty	$3,574,356	6,846	$522
78	Danville	$10,692,261	20,607	$519
79	PrinceEdwardCounty	$3,401,117	6,561	$518
80	RichmondCounty	$1,486,428	2,937	$506
81	Williamsburg	$1,830,149	3,619	$506
82	Norfolk	$43,496,013	86,210	$505
83	AmherstCounty	$5,902,914	11,941	$494
84	AppomattoxCounty	$2,550,692	5,322	$479
85	ColonialHeights	$3,351,409	7,027	$477
86	NorthamptonCounty	$2,534,104	5,321	$476
87	Winchester	$4,656,256	10,001	$466
88	PageCounty	$4,325,181	9,305	$465
89	CharlesCityCounty	$1,212,670	2,670	$454
90	AugustaCounty	$11,225,019	24,818	$452
91	Hopewell	$3,891,136	9,055	$430
92	MiddlesexCounty	$1,824,630	4,253	$429
93	Staunton	$4,132,735	9,676	$427
94	FloydCounty	$2,423,737	5,791	$419
95	PittsylvaniaCounty	$10,306,921	24,684	$418
96	Waynesboro	$3,467,443	8,332	$416
97	CulpeperCounty	$4,997,967	12,141	$412
98	TazewellCounty	$7,492,856	18,277	$410
99	LouisaCounty	$4,026,891	9,945	$405
100	MontgomeryCounty	$12,367,944	30,997	$399
101	NottowayCounty	$2,156,332	5,664	$381
102	WytheCounty	$4,372,504	11,511	$380
103	CraigCounty	$778,145	2,060	$378
104	NorthumberlandCounty	$2,033,166	5,470	$372
105	BlandCounty	$940,686	2,568	$366
106	SmythCounty	$4,568,010	13,493	$339
107	CampbellCounty	$6,912,361	20,639	$335
108	HalifaxCounty	$4,988,438	15,018	$332
109	WashingtonCounty	$6,989,853	21,056	$332
110	Bedford	$822,411	2,519	$326
111	Norton	$561,173	1,730	$324
112	LancasterCounty	$1,596,765	5,004	$319
113	SurryCounty	$775,415	2,619	$296
114	CharlotteCounty	$1,440,094	4,951	$291
115	Martinsville	$1,882,407	6,498	$290
116	HighlandCounty	$316,533	1,131	$280
117	BuchananCounty	$2,876,835	10,464	$275
118	DickensonCounty	$1,764,696	6,732	$262
119	Bristol	$2,000,779	7,678	$261
120	RussellCounty	$3,008,475	11,789	$255
121	Radford	$1,477,699	5,809	$254
122	PulaskiCounty	$3,707,816	14,643	$253
123	WiseCounty	$4,005,563	16,013	$250
124	FranklinCounty	$4,741,211	18,963	$250
125	MecklenburgCounty	$3,211,143	12,951	$248
126	PatrickCounty	$1,906,358	8,141	$234
127	Harrisonburg	$2,787,949	13,133	$212
128	ScottCounty	$1,702,451	9,795	$174
129	CarrollCounty	$2,102,153	12,186	$173
130	Galax	$501,872	2,950	$170
131	LeeCounty	$1,431,956	9,706	$148
132	HenryCounty	$3,500,881	23,910	$146
133	GraysonCounty	$1,028,885	7,259	$142
134	BathCounty	$116,938	2,053	$57
Statewide	$2,297,649,190	2,697,332	$852

Source: Computer = analysis=20 using tax data from the Virginia Department of Taxation and = population=20 data from the U.S. Census Bureau=20

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