If you’ve ever opened a car tax bill and wondered how your old vehicle somehow gained value like fine wine, Stephen Martin knows the feeling.
The Amherst County driver says his 2022 Toyota Sienna and a 2016 Ford F-250 are worth much less than what he’s taxed on, and he’s not convinced the county sees it the same way.
Maybe you’re right. Used car prices have skyrocketed in recent years. iSeeCars reviewed price data for more than 2.6 million three-year-old vehicles and found that the typical used car now costs about $32,635, about $9,500 more than in 2019 (1).
Martin says his county is taxing its vehicles as if the market is at its peak. As a result, he says he faces valuations much higher than what he could sell his cars for.
“This is garbage, something is not right here. Something is wrong,” Martin told ABC 13 (2).
He worries he’s not the only one. Throughout Virginia, many drivers may face the same sticker shock.
When Martin compared his assessment of Amherst County to online price guides, the difference was hard to ignore. The county valued his minivan at $42,200, just a few thousand less than what he paid for new three and a half years ago.
Edmunds, TrueCar, and Kelley Blue Book put the truck’s current value much lower, at between $30,000 and $35,000. His truck showed a similar discrepancy.
“I entered all the information like it was a perfect vehicle. If you get out, I have a dented tailgate and side,” he said. “So it’s further proof that this evaluation system is flawed.”
The mathematics of depreciation backs this up. According to BrokerLink (3), cars typically lose around 20% of their value in the first year, 15% in the second, and 12% in the third. By that measure, a $45,000 vehicle like Martin’s should be worth approximately:
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Year 1: $36,000
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Year 2: $30,600
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Year 3: $26,928
And the current depreciation may be even greater. Americans keep their vehicles longer; The average age of cars is now 12.8 years, the highest on record, according to S&P Global Mobility (4). Age, mileage, condition, and market trends shape resale value, and for most drivers, prices tend to drop over time, not 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 could be paying between $450 and $700 more than he should. His appeal did not go very far. The county offered a mileage deduction worth about $30.
He is not alone. The Virginia DMV says more than 8.4 million registered vehicles are subject to personal property tax each year (5). Each locality sets its own rate; some are around $3.00 per $100 of appraised value, while others are closer to $3.70. Most counties use the JD Power (formerly NADA) value guides to determine taxable value.
Amherst County Revenue Commissioner Jane Irby told ABC 13 that the county uses JD Power appraisals from Jan. 1 for each registered VIN. He couldn’t explain why those numbers are sometimes higher than those from consumer tools like Kelley Blue Book or Edmunds, but he said mileage deductions are currently the only tax relief offered. Neighboring counties confirmed they also use JD Power as the industry standard for tax assessments.
Martin’s experience is echoed across the state. In Chesterfield County, Alesha Moore told WTVR-TV that her 2018 Nissan Murano, valued at about $16,000 the previous year, was reassessed at $22,350, an increase of $6,350 (6).
“The counties send you 15 bills for three different things. They think they’re going to overload you with information and you’re going to pay,” Moore said.
Some lawmakers say the broader system needs an overhaul. Del. Tim Griffin told ABC 13 he plans to revive a bill to repeal Virginia’s car tax when the General Assembly returns. For now, Martin says nothing about the current valuation resembles real-world prices.
“How many other people, retirees, seniors, people who have lost their jobs, are paying more taxes because of the overassessments?” he said.
If your bill seems high, consumer experts recommend your car’s value in multiple price guides, save screenshots, and contact your local tax office to ask about available appeals or deductions.
We rely only on verified sources and credible third-party reports. For more information, see our editorial guidelines and ethics.
iSeeCars(1); WSET(2); Broker Link (3); S&P Global (4); DMV (5); WTVR-TV (6).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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