![]() ![]() Personal Use Vehicles assessed at $5,001 - $20,000 Personal Use Vehicles assessed at $5,000 or less ![]() This does not affect the assessed value of the car, but it will impact the overall local tax levy due to be paid by October 5. Because the City receives a fixed, flat amount from the State each year for the Car Tax subsidy, if more relief is allocated to low value cars, less relief must be given to more expensive cars. It is estimated this action will eliminate the local tax burden on approximately 32,000 cars. The previous 100% subsidy only applied to vehicles assessed at $1,000 or less. Starting with Tax Year 2022, the City will now apply the State Car Tax subsidy to 100% of the amount due on Personal Use vehicles assessed at $5,000 or less. ![]() However, it is important to note that even with the use of an Assessment Ratio, y ou could still see an increase on your specific vehicle compared with last year, as the change in market value varies widely by vehicle model and year.Ĭar Tax bills will be mailed this summer, due to be paid on or before October 5, 2023.Īlong with the Assessment Ratio on all cars, City Council has taken additional action to minimize the tax burden on lower-valued cars. Not all jurisdictions in Northern Virginia adopted an Assessment Ratio for Tax Year 2023.Īfter applying the discount, vehicles on average will experience an assessment decrease of around 8% from 2022. This action is permitted by Section 58.1-3503(B) of the Code of Virginia. This means that on every vehicle being taxed, the City will apply a discount of 10% to NADA’s January market value. Rather than tax the full market value as allowed by law, on May 3, 2023, the Alexandria City Council adopted the FY 2024 budget which included a 90% Assessment Ratio on car values for Tax Year 2023. Overall, vehicles in the city appreciated 1.94% on average based on the January 1, 2023, NADA pricing guide, but the range is significant, with approximately 44% of vehicles appreciating in value an average of about 14%. While vehicle appreciation resulting from these economic forces dropped considerably over the past year, values on average have not yet completely returned to normal as of January 1, 2023. All jurisdictions in Virginia, including the City of Alexandria, use the National Automobile Dealers Association (NADA) values for used vehicles.Įconomic factors associated with the COVID-19 pandemic wrought unprecedented spikes in car valuations on a state and national basis for Tax Year 2022. As required by the Code of Virginia, vehicles are valued by a recognized pricing guide as of January 1 of each tax year. ![]()
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