If you’ve ever opened your car tax bill and wondered how your aging vehicle gained value like fine wine, Stephen Martin knows the feeling.
The Amherst County driver said his 2022 Toyota Sienna and a 2016 Ford F-250 are worth far less than what he owes in taxes, and he doesn’t believe the county thinks so.
He may have a point. Used car prices have soared in recent years. iSeeCars reviewed pricing data for more than 2.6 million three-year-old vehicles and found that a typical used car now costs about $32,635, about $9,500 more than in 2019(1).
Martin said his county is taxing his vehicles as if the market were at its peak. As a result, he said he faced an appraisal that was far higher than what he could sell the car for.
“It’s just rubbish, something’s not right. Something’s screwed up,” Martin told ABC 13 (2).
He worries he’s not the only one like this. In Virginia, many drivers may be facing the same sticker shock.
When Martin compared his assessment of Amherst County to online pricing guides, the differences were hard to ignore. The county values ​​his minivan at $42,200, just a few thousand dollars less than what he paid for it new three and a half years ago.
Edmunds, TrueCar, and Kelley Blue Book all place the van’s current value at a low $30,000 to $35,000. His truck showed similar differences.
“I entered everything as if it was a perfect vehicle. If you go out there, I have dents in the tailgate and sides,” he said. “So this is further evidence that this assessment system is flawed.”
The math of depreciation backs up his claim. According to BrokerLink (3), cars typically lose about 20% of their value in the first year, 15% in the second year, and 12% in the third year. By this standard, a $45,000 car like the Martin would be worth:
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First year: $36,000
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Year 2: $30,600
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Year 3: $26,928
Today’s depreciation is likely to be even more dramatic. According to S&P Global Mobility, Americans are keeping their vehicles longer, with the average car age now at a record high of 12.8 years(4). Age, mileage, condition and market trends all affect resale value, and for most drivers the price will drop over time rather than return to the original sticker price.
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ABC 13 compared Amherst County’s tax rate of $3.45 per $100 of assessed value to fair market estimates and found Martin likely overpaid between $450 and $700. His appeal didn’t make much headway. The county offers a mileage deduction worth approximately $30.
He is not alone. The Virginia DMV states that more than 8.4 million registered vehicles are subject to personal property taxes each year(5). Localities set their own rates; some hover around $3.00 per $100 of assessed value, while others are closer to $3.70. Most counties use the JD Power Value Guide (formerly NADA) to determine taxable value.
Amherst County Tax Commissioner Jane Irby told ABC 13 the county uses JD Power’s January 1 valuation for every VIN on record. She couldn’t explain why the numbers are sometimes higher than spending vehicles such as Kelley Blue Book or Edmunds, but said the mileage deduction is the only tax break currently offered. Neighboring counties confirm that they also use JD Power as the industry standard for tax assessments.
Martin’s experience resonates across the state. In Chesterfield County, Alesha Moore told WTVR-TV that her 2018 Nissan Murano, which was worth about $16,000 last year, was revalued at $22,350, an increase of $6,350(6).
“Counties will send you 15 bills for three different things. They think they’re just going to give you too much information and you’re just going to pay for it,” Moore said.
Some lawmakers say the broader system needs an overhaul. Tim Griffin tells ABC 13 he plans to reintroduce a bill to repeal Virginia’s car tax when the General Assembly returns. For now, Martin said current valuations are nothing like real-world pricing.
“How many more people, including retirees, seniors, unemployed people, are paying more taxes because valuations are too high,” he said.
If your bill looks high, consumer experts recommend your car’s value in multiple pricing guides, save a screenshot and contact your local tax office to ask about appeals or available deductions.
We rely only on vetted sources and reliable third-party reports. For more information, see our Editorial Ethics and Guidelines.
iSeeCars (1); WSET (2); Broker Links (3); S&P Global (4); Department of Motor Vehicles (5); WTVR-TV (6).
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
