RICHMOND, Va. -- Richmond-area drivers pay about $250 million a year in property taxes on their vehicles -- the car tax -- to the state government. To calculate how much you owe, each city and county comes up with its own rate based on the value of your car. In Richmond it is $3.70 per $100 of you car's assessed value. In Chesterfield it is a bit cheaper -- $3.60 and in Henrico it is even cheaper -- $3.50. Each city and county arrives at your car's value using the vehicle's clean trade-in value assessed by the National Automobile Dealers Association (NADA).
There is a chance you’re paying too much
Because the government uses your car's "clean trade-in" value, there is a chance you are paying too much car tax. Richmond driver John Taylor bought his 2001 Volvo S40 a few months ago, but it’s not necessarily in good shape. It’s easy to point out the car's dents and dings, as well as the chipped paint. Taylor’s car, as a clean trade-in, is valued at $ 1,650, according to the NADA. But that does not take into account the car's problems. When you factor in the damages, Taylor's car is really worth $600, according to NADA. Taylor's car tax bill would shrink from $61.05 to $22.20.
Lorenzo chats with John Taylor about his car's value.
It is a similar story for Lydia Guay. Her 2001 Mercury Villager is value at $1, 825, as a clean trade-in. However, it is evident Guay’s van is far from a clean trade. Based on an NADA assessment, it’s not even worth half the amount.
Lydia Guay and her 2001 Mercury Villager.
Richmond Chief of Revenue Administration Sharon McDonald said the city urged drivers to let them know about their car's true condition.
"We assess everybody in the same method," McDonald said. She added it's not just about cosmetics, but mileage too. That, she said, was where a lot of people saw the most savings. If you put more than 12,000 miles on your car a year, you could see a property tax reduction.
"It might be an extra coffee you can buy, a meal at McDonald’s. You just never know," McDonald said.
Chesterfield and Henrico also urged drivers to notify them about changes to your vehicle’s status.
