King and Queen County probes impact of sharp NADA vehicle-value increases on tax revenue
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Summary
County staff reported NADA vehicle values have risen substantially, in some cases by about 40%. The Board asked staff to estimate revenue impacts and propose percentage-ratio options under a Virginia Code provision that could change how personal property is assessed.
At its Feb. 22, 2022 meeting, the King and Queen County Board of Supervisors discussed a recent spike in commercial vehicle valuations that could raise personal property tax revenue.
Mr. Swartzwelder, a county staff member, said the Commissioner of Revenue notified him that NADA (National Automobile Dealers Association) book values for vehicles, particularly used cars, have increased significantly, with some examples rising as much as 40 percent. He told the board the Commissioner currently selects which NADA value to apply but that a Virginia Code section allows the Board to adopt a percentage value ratio instead.
The issue matters because higher assessed values for personal property would increase the county's tax base and potentially affect the levy; Mr. Swartzwelder said staff cannot calculate the exact impact until all personal property forms are returned and entered. After discussion, the board reached a consensus to request from staff estimates showing projected valuation increases and proposed ratio options, noting an illustrative planning figure of roughly a 25 percent increase in revenue.
Doris H. Morris, chairman, presided over the discussion; Board member Sherrin Alsop was noted absent. The Board did not take formal action to change assessment policy at the meeting; the matter was left for staff analysis and a future report to the Board. Staff will provide the requested estimates at a subsequent meeting, after personal property records are updated.