Lynchburg needs a solution. That’s why we are proposing the ‘No Car Tax Plan.’

Virginia’s car tax is one of the most hated and regressive taxes our citizens face. It’s unpredictable, it punishes working families for owning modest vehicles, and it hits lower and middle-income households the hardest. In Lynchburg, we can do better — and we have a golden opportunity to do just that.

That’s why we have proposed the “No Car Tax Plan” — a creative, conservative approach that keeps city services strong while delivering tax relief to the very people we represent.

What the plan does

Under our proposal, Lynchburg would:

• Eliminate the personal property tax on the first $20,000 of assessed vehicle value — which fully wipes out the car tax for most residents.
• The owners of 45,500 vehicles (no, that is not a typo) will see a car tax cut. 
• Lower the car tax rate (from $3.80 to $1.30) on any value above $20,000 — significantly easing the burden for those with newer or multiple vehicles.
• Adjust the real estate tax rate to $1.025 per $100, still below where it was just a few years ago and neighboring cities like Roanoke. 
• Protect core functions of local government like education, public safety and infrastructure — with no cuts to step raises for teachers, first responders or school infrastructure.
• Maintain competitive funding for capital improvement projects — with a more efficient, taxpayer-conscious lens.

And don’t forget, the plan will also incorporate eliminating a $10 monthly trash fee and an annual $35 car tag. That means nearly an additional $200 of annual tax cuts for a family with two vehicles and using the city trash service. 

Finally, it even reduces city spending by $1.4 million, further building the conservative case for this path in Lynchburg. 

How it works

The goal here is to impact the middle class. Here, a family living in a $250,000 house with two cars assessed at $15,000 is saving nearly $150 right off the bat — not including the savings from trash and car tag fees. Combining with the trash and car tag fee reductions, this family is looking at more than $300 of local tax cuts. 

Using current assessments, the average Lynchburg household with two cars assessed would save hundreds of dollars per year — even after adjusting the real estate rate in these scenarios. 

This is a real, measurable tax cut for Lynchburg families.

What about renters?

Opponents argue that any increase to the real estate rate will “automatically” increase rents. But the numbers don’t support that blanket claim. In many common scenarios, renters in multi-family housing will still come out ahead under this plan, even with increased rents. 

For example, in a two-tenant occupied unit, the car tax savings exceed the projected rent increase by over $250 per year. And if you’re a three-tenant unit? The savings grow even more.

A bold, conservative alternative

I didn’t run for office to pass the buck — or to raise taxes blindly. I ran to solve problems with innovative, principled ideas. No plan, including this one, is perfect. But the No Car Tax Plan meets the moment:

• It respects your hard-earned money.
• It shields working families and renters.
• It keeps the city running — without hurting the core functions of government we all rely on.

Lynchburg can be the first locality in Virginia to do what people have wanted for decades: End the car tax — and do it responsibly.

Now is the time to lead. If you live in Lynchburg and want to see how the No Car Tax Plan can impact your bottom line, visit LynchburgCarTax.com

Chris Faraldi is a member of the Lynchburg City Council.