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Leesburg council weighs options to eliminate $25 vehicle license fee as Loudoun offers one-time grant
Summary
Councilors discussed three options for a $25 annual vehicle license fee after Loudoun County offered a one-time grant for tax year 2025 to towns that reduce the fee to $0; accepting the grant would reimburse FY2025 losses but create an approximate $900,000 FY2026 revenue shortfall unless the council reintroduces the fee or offsets the cut.
Town staff outlined options for the town’s $25 annual vehicle license fee and the county’s one-time grant-in-aid offer during a work session discussion led by a finance staff member. The fee applies to motor vehicles, motorcycles and trucks registered in town.
The county’s offer: staff explained that Loudoun County’s treasurer and the Board of Supervisors moved the county fee to $0 effective for tax year 2025 and offered towns a one-time grant equal to their lost vehicle-fee revenue for tax year 2025 if the town opts to reduce its fee to $0 for that tax year. The grant covers the fiscal year ending June 30, 2025; it does not extend into FY2026.
Options explained by staff - Take no action: keep the $25 fee. The town would retain about $900,000 in annual…
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