Governor Youngkin wants to get rid of personal property taxes
RICHMOND, Va. (CBS19 NEWS) -- Governor Glenn Youngkin says he wants to do away with personal property taxes.
It was a part of his budget proposal announcement on Wednesday.
In that proposal, he also advocates for dropping income tax in the state by as much as 12 percent for everyone.
He says the car tax is very unpopular and it's time for it to go away.
"The car tax belongs in the trash can, not in your mailbox," said Youngkin.
To make up that revenue, Youngkin says there could be a hike in the sales tax or change other tax rates.
House Democrats have since responded to the proposal saying, “This budget shows, yet again, that Governor Youngkin doesn't understand the needs of everyday Virginians. We need a governor and a budget that put working families first.”
While many people who pay personal property taxes welcome the announcement, local government says it's not that simple.
"Twelve million dollars is basically two-thirds of the police budget, $12 million is basically 15 to 20 percent of the amount we contribute to the school system," said Charlottesville Mayor Lloyd Snook.
He and other councilors say if that goes away, there will be plenty of work to do to fill the gap.
"We can either raise 12 cents on the real estate tax rate, that means everybody’s house taxes would go up by 12 to 13 percent," he said.
It's not just the city. Nelson County gets about $6 million a year from personal property taxes, which Supervisor Jesse Rutherford says would be a big problem for them to solve.
"Obviously, I don't want to see Mr. Youngkin say that he is going to get rid of the tax and then force the localities to figure out the burden of lost revenue that of course isn't a simple task. This isn't a small number, this is millions of dollars," he said.
Rutherford says ditching the car tax would help in his county.
"It's a burden on everyone in a way. It's the biggest burden on those who are of a lower income. If you live in Nelson County, your car is a huge piece of how you commute to work,” he added.
He wants to make sure that there are good plans in place to make sure local governments aren't holding the bag, a sentiment shared by many local governments.
"I'm all for it but we're going to have to make sure there's going to be a way to replace those critical funds," said Charlottesville City Councilor Juandiego Wade.