Car Tax relief rate is approved by BoS
The rate of the state subsidy used to keep the tax on personal vehicles low was set at the August 22, 2023 Board of Supervisors meeting. The Board met at the Botetourt County Administration Building at Greenfield in Amsterdam.
Citizens should be paying a little less this year.
The county has been receiving a fixed amount from the state since 2005, when the Board adopted the Personal Property Tax Relief Act.
The money is used for car tax relief for vehicle valued from $1,001 to $20,000, with no taxing of vehicles having a value of $1,000 or less.
The county receives $3,418,137.01 annually, and this is applied to taxpayers rate. Because the amount from the state is fixed, the state’s subsidy has declined from 70% to 41% this year.
This year, based upon projected vehicle values and the amount of tax relief to be provided by the State, the County’s reimbursement is projected to be 41% based upon providing County citizens with the $3.4 million State block grant. For 2022, the approved relief percentage was 39%, with the taxpayer portion set at 61% of the full tax amount.
This means that the tax burden on Botetourt County deceases from 61% to 59% this year. The 2023 relief (41%) and taxpayer portion (59%) percentages take into consideration the impact of changes in used car values, a slight reduction for the number of qualifying vehicles, and an increase in the assessed values base. This calculation is mandated by the Virginia General Assembly.
In determining how to distribute relief among County taxpayers, the Board adopted the Specific Relief Method in December 2005. This method gives localities the option to apply State relief on a per vehicle basis and show the specific amount of relief on each tax bill. This method is reflected in the County’s current billing format.
Bills for taxes should be sent out soon. Personal property and real estate taxes are due November 1.
— Anita Firebaugh, Special to The Botetourt Bee
