Tax, Tax, Tax.

You nailed it. 10-15 years ago the VA car tax was so bad, many folks registered their cars in MD and DE (tax free). In response, the VA laws were changed to make it illegal to register out-of-state, and the VA car tax was temporarily reduced. What is happening now, the car tax is growing and coming back as an issue, but many are not aware of it yet...they simply pay it every year without thinking about the total tax bite on a new car.

Virginia simply chooses to spread the property taxes out to include cars, whereas most states mainly tax your house. Among other problems, this VA policy leads to "interesting" hybrid math. Because Toyota's retain value so well, they are taxed more heavily in the VA tax system. More expensive cars (national average = $32K for new car) are hit quite hard in the VA tax system. One would think auto dealers would not like this system...I think it hurts business. In any case, adding a new hybrid fee to the existing VA tax policy is just hybrid tax overkill IMHO.

 

Be careful of what you ask for. Remember how big SUVs had a tax advantage. You really want more of that?

 

I say that they actually monitor speeding more, and gain all that extra revenue from all the super speeders they are sure to catch in Northern Virginia to make up for any extra revenue they may gain from this tax. Isn't wear and tear not only due to weight of a car, but the speed that the car actually travels? So, couldn't you say that the people who go 30+ miles over the speed limit like I have witnessed in mass up there are destroying the roads just as much? I guess if we do move up there at some point, it is wise to sell the Prius and live close to the metro so we don't have to depend on cars? Who gets all the revenue from the Metro?

The tax subject is always going to be sore one. No one wants their money to be taken when they see few benefits from it. Who really wants to give money away?

 

The extra property tax is because the car is more expensive, and because local taxes in nova are insane, not because it is a hybrid. It sounds like you have a case of buyers remorse more than anything. If $64 is what makes or breaks hybrid ownership for you then a hybrid probably did not make sense before the tax.

 

We need to call our state legislators, and protest this proposal, we are being penalized for saving
energy and helping the environment. This is wrong......It is proposed by Democrates and Republicans.....they are saying we are not buying enough gas....House Bill 1038....

 

This is a valid point. I have already saved over $400 compared to my 31 mpg average Saturn and I have only owned it since Jan 11...

 

Right after they tax guzzlers $500...

 

Use tax influences encourage Hybrid and EV purchase not discourage it with additional taxes.

 

California we get taxed to death.

Among the highest state Income tax from 8-18% of AGI.

Registration tax, sales tax, property tax, gas tax, Mello Rous Tax, school tax, local an state bonds , HOA and on and on. The Feds and State are closing loop holes, unions negotiate unrealistic and unsustainable pension and health benefits for retires.

Everyone got there hand out and we just keep reaching for our check book.

Gov should look for ways to manage with what they have and not increase taxes. Sure you can say it's another $64 a year you can afford that, and straw by straw you break the economy with a tax burden that is unbearable for the worker.


Smart gov frees us from the tax burden

 

I can't feel terribly sorry for you in that you have a nice view of the beach and ocean. Just kidding. Yes, there is a reason I don't live there, as much as I would love to move back to my home state! California is just ridiculous all the way around. It makes absolutely no sense that it is in the financial state that it is in with all that extra income.

 

This is despicable. Virginia has proposed something similar, and they have one of the lowest gas taxes in the nation. I can't believe the nerve of these politicians, and how the hell do they ever get elected with moronic ideas like these.

 

Supported and paid off by big oil springs immediately to mind...

 

The economic effects on Virginia are more amusing:

• $64/year tax ~ 20 gallons of gas at $3/gallon
• gasoline payments leave the Virginia economy

So let's consider two cars driving 12,000 miles per year:

• 25 MPG ordinary gas car -> 480 gallons, send ~$1,440 out of Virginia
• 50 MPG ordinary Prius -> 240 gallons, sends ~$720 out of Virginia

Best case, every Prius replaced by a typical gasser loses nearly ten times the supposed tax revenue in exported Virginia wealth . . . another economic leach. Penny wise, pound foolish, Virginia wins the prize.

No, this is just another "whack a hippy" tax to encourage bleeding Virginia's economy. Once again, Virginia's government is showing intellectual poverty, the hand maiden of economic poverty. It is a lesson I learned early in Atoka, Little Dixie Oklahoma.

Bob Wilson

 

Another nonsensical reply. Your attempts to make this a political issue, while amusing, are preschool level at best. By your logic, for every Prius sold in Virginia that is $23-$30,000+ that leaves Virginia.

 

Did you live in Virginia at some point? I am trying to figure out why you have so much anger towards that state government? I would imagine if you live in Huntsville that you have ties to Northern Virginia based on the defense/aerospace industry?

 

....

 

The decision to tax hybrids was made by Virginia politicians and now Virginia gets to live with the consequences:

• every Prius sale replaced by a gasser -> ~$720 departs Virginia in gasoline expense for just $64 in tax revenue

Now I'm not an expert in the other Virginia taxes but those who are have already pointed out Virginia is doing a pretty good job of making Prius more expensive. In effect, Virginia is rewarding downstate, poor gas mileage by tax policies that force the Prius to subsidize them.

My wife and I have lived in Maryland, DC, and Virginia. Our preference if we were to return would be the same order. At least in Maryland you never felt you were being petty taxed to death. DC has its problems but competence is not one of them and besides, who wants to live in a USA colony. As for Virginia, it was pretty obvious the downstate folks are doing everything they can to milk those 'rich' Federal workers.

Regardless, all we have to do is wait and measure the per capita Prius ownership. Within about 3-6 years, we should see if Virginia and Maryland change places. After 10 years, the trend will be even more evident. But the ones that are really going to hurt are the less efficient hybrids. They don't even have the fuel savings to offset the $64 "whack a hippy" tax.

Bob Wilson

 

Hahahaha that is probably the biggest load of BS I've read by you yet. All those "poor, downstate" people being subsidized by the great rich north. Tell me bob, how effective would a Prius be at hauling the hogs to slaughter, tobacco to the drying barns or maybe some peanuts to market. Or maybe the minorities working in the shipyards or all the enlisted men and women in the Hampton roads, are they being subsidized by the great rich north too?

 

You got a problem because the numbers are there for anyone to see:

Source: Gov McDonnell keeps punitive hybrid tax, defying public outcry

But as even USA Today pointed out:

Source: Hybrid drivers may save on gas but new tax gotcha

We know hybrids are a small part of the total vehicle sales and have been under 3% certainly since I've been tracking them in 2005. Only those California "hippies" are buying them like they are going out of style . . . and they can actually see the mountains to the East of Los Angels.

In reality, the economic impact of exporting Virginia's gasoline revenue . . . out of state . . . works for me. It is just another symptom of their State government intellectual poverty.

Bob Wilson

 

If you don't think it is a Northern Virginia vs Downstate issues:

Source: Lawmakers: Reduced Hybrid Tax Still Unfair - Old Town Alexandria, VA Patch

Bob Wilson