NORFOLK, Va. — April is tax season and while federal and state taxes may have been top of mind for the first few weeks, there are other taxes Virginians have to pay later in the year, like real estate taxes and the infamous “car tax.”
Last year, Virginia Gov. Glenn Youngkin voiced his support for eliminating the car tax, after presenting the new state budget. The topic became one of the most viewed and most liked posts on 13News Now’s official Instagram.
While Virginia car tax is widely criticized, removing it could hurt city budgets
“The car tax belongs in the trash can. Not in your mailbox," Youngkin told reporters. "It is by far the most hated tax and it may be the most hated element of living in the Commonwealth of Virginia. Everywhere I go, I consistently hear, 'Help us get rid of the car tax.'"
Virginia Wesleyan University Associate Professor Leslie Caughell pointed out that while Youngkin may want to get rid of this tax, he didn’t reveal a concrete plan to do so.
“Gov. Youngkin’s plan isn’t really a plan," Caughell told 13News Now.
RELATED: Youngkin, Virginia lawmakers to set aside budget proposal, reconvene in May special session
And Youngkin's not the first Virginia governor to tout the idea of kicking the car tax to the curb. Back in the 1990s, Jim Gilmore’s successful gubernatorial campaign focused on eliminating the car tax. But as we all know, we’re still paying it. So what happened?
“This stuff rhetorically is really easy because everybody wants a tax cut and everybody would like to pay less in taxes," Caughell said. "But it gets really hard when the rubber meets the road and you have to face the budget implications.”
Caughell said with cities getting most of their revenue from taxes, cutting out a major tax like the car tax would leave a big financial hole in the budget. Cities could come up short if they don’t find another source of revenue.
While the car tax probably isn’t going away any time soon, Youngkin's comments did spark a wider conversation about how much taxes Virginians are paying.
Hampton Roads cities weigh property tax cuts, but it may not decrease payments
At a public hearing session on the Virginia Beach city budget this week, one resident told city council members: "You can't just keep raising the real estate tax year after year after year."
How much you owe in taxes depends on where you live. If you live in Portsmouth and Norfolk, you’re paying the highest real property tax rate in Hampton Roads.
In Portsmouth, the real estate tax rate is $1.30 per $100 of the assessed value.
In Norfolk, the real estate tax rate is $1.25 per $100.00 of the assessed value.
The lowest in the region is Virginia Beach, which has held steady for years at $0.99 per $100 of assessed value. In Chesapeake, homeowners pay $1.01 per hundred of the assessed value.
In Hampton Roads, some cities are looking to cut real estate taxes this year because of rising assessment values for homes, but the end result could be an increase in how much residents are paying.
At the beginning of the month, some people living in Norfolk and Chesapeake got a notice warning of a “proposed real property tax increase.”
CPA Stephen Livingston explained: if your assessment goes up, you can still pay more in taxes, even if the city lowers property tax rates to compensate.
“The city of Chesapeake sent out a notice that they were cutting the rate because they increased the assessment," Livingston said. "So when they increase the assessment, even though the rate was lower, there was still a real estate tax in general... Unfortunately, it results in higher real estate tax for everybody.”
City leaders in Virginia Beach and Hampton are also weighing similar proposed real estate tax changes.
In Virginia Beach, the rate would drop from $0.99 to $0.97 per $100 of the assessed value under the proposed budget.
In Hampton, city leaders are also considering a potential drop in the real estate tax by 1 cent.
Residents across Hampton Roads have mixed reactions to the proposed changes. Many say they just want a break.
"My taxes have gone up 20% two years ago, 14% this past year, and when I look at my increase for this coming tax year, I am looking at another $700," Virginia Beach resident Anne Townsend said. "They just need to do more than 2 cents for a cut. They need 3 or 4 cents and look for other revenue sources... They can give us a better tax break than that."
There will be a public hearing on tax changes in Norfolk, next week on Tuesday, April 30.
Residents are welcome to give their thoughts at Slover Library beginning at 5 p.m. If you want to speak before the city council, you must register with the city clerk by 3 p.m. on April 30 by calling 757-664-4253 or emailing ccouncil@norfolk.gov.