IOW is lowering the personal property tax to offset higher vehicle prices

ISLING WHITE, Virginia (WAVY) – With record inflation, Isle of Wight County on Thursday became the first major local government in the Hampton Roads region to try to help.

Vehicles are usually depreciated assets, which means they lose value over time. However, higher appraised prices of used cars due to lack of new vehicles mean that property taxes that a person will have to pay will also rise.

During a meeting Thursday night, the Isle of Wight Supervisory Board unanimously voted to cut the county’s personal property tax rate by 60 cents.

It is estimated that this will reduce the tax burden on local taxpayers by more than $ 1 million.

The district administrator stressed that the relief would be a temporary change.

In addition, a tax credit for the 2022 calendar year will be set at 35% for vehicles worth more than $ 1,000 for the first $ 20,000. For vehicles costing less than $ 1,000 the relief is 100%.

The head of the Isle of Wight, William McCarthy, says he hopes they will be an example for the region to follow. The vehicle tax rate and any benefits are controlled by local authorities, not the state.

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