Prediction Corner #1

Here it is people.... The first of the predictions from the (very shy...well, anonymous) grand master himself (ah...it's not me). This will be updated as he chooses to drop his nuggets of wisdom upon us:

1) In spite of the (apparently) growing distaste for the Iraq war and the Republicans in general, the mix of Democrats/Republicans in the House and Senate will stay virtually unchanged after the November 2006 elections. The end result will be that the Republicans will retain control of the House and Senate.

He has spoken.

We’d like to welcome back to Virginia the new and improved CAR TAX!

So much for politicians and their promises. The State of Virginia has been stuck on 'covering' 70% of a vehicle owner's car tax bill for several years and now they decided to change the scheme starting this year. This year and beyond, they're only going to fund $950 million dollars worth of discounts. That means that the % of the bill they'll cover will fluctuate, depending on the car values for that year. What this means for you is that it your tax bill will almost certainly go up. Right now, in Fairfax County Virginia you have to pay $ $4.57 per $100 of assessed value. The state has been generously paying 70% of that for you. However, they do that only up to an assessed value of $20,000. Any amount above $20,000 you have to pay the full tax yourself. The state is now estimating that this year's car tax relief will be closer to 65%. Let's look at some figures to illustrate what that means:

You buy a $21,000 car this year, say, a Toyota Camry.

Your tax rate is $4.57 per $100 for the first $20K. ($914)

The rate for the next $1,000 is the same ($45.70)

The state is going to pay 65% of the $914, but the $45.70 you have to pay all yourself.

$319.9 + $45.70 = $365.6 for the first year. Remember, this is an annual tax based on the assessed value of the car.

Last year, using the old rates, you would have paid $319.90. This represents a 14.29% increase in the tax in one year. Of course, they might only cover 40% (so you'd have to pay $594). You'll just have to wait and see. Kind of adds new excitement to getting the mail, doesn't it?

In 1997, Virginia's then Governor Gilmore promised to do away with the tax completely (His campaign slogan was "No Car Tax!") That promise single handedly won him the office. Now 9 years later, it's still not gone and is no longer decreasing or stabilized, but IT'S GOING BACK UP!! I guess politicians have short memories. Lucky for them, so do the stupid/busy/lazy voters.