Special Report No. 73
Executive Summary As part of their respective campaigns for governor, both Republican James Gilmore and Democrat Donald Beyer have promised Virginian’s relief from their personal property taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. es. Often lost in all of the talk of exemptions, tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. s, and phase-ins, however, is the actual size of the tax savings under each plan.
For the benefit of Virginia’s voters the Tax Foundation has conducted an analysis of each of the proposals for owners of four popular vehicles.
Gilmore intends on gradually phasing in is plan during fiscal years 1999-2003. The analysis generally shows that while the Beyer plan offers more up-front tax relief, the Gilmore plan offers at least as much savings, and in many cases considerably more, over the longer-term.Share