RICHMOND, VA (CVILLE RIGHT NOW) – Governor Youngkin’s specific proposal for car tax relief is nearly over before it started as the Democratic-controlled state Senate Finance Committee “passed by indefinitely” the Senate legislation Tuesday morning. The action was already approved 3-to-1 in subcommittee, and its fate sealed really two weeks ago in the committee’s first meeting of the 2025 General Assembly session. Fredericksburg Republican Tara Durant’s legislation carried the Governor’s proposal to use some $1.1-billion in the current revenue surplus over the next three years to finance a tax credit for car tax payments by individuals making $50,000 or less, or joint filers making $100,000 or less. The credit would be $150 for those individuals, and $300 for those joint filers.

However, Senate Finance Chair Louise Lucas in the committee’s January 14 meeting spoke for a couple of minutes saying, “it is my intent the Senate budget will provide relief to working families and individuals and invest in their education and well-being while maintaining the Commonwealth’s long-term fiscal health”.

“Working families are feeling the impact of inflation, and we’re working to provide more immediate relief”, Lucas said.

A week ago, on WINA’s Morning News, Charlottesville Democrat Creigh Deeds as a long-time member of Senate Finance said he is listening to relief for working families, but he’s concerned what happens with the car tax credit beyond the three years Governor Youngkin’s proposal finances it. Lucas says her intent is to find relief within the overall budget.