By Princess Harrell, reprinted from wjla.com, June 3rd, 2025

ARLINGTON, Va. (7News) — Virginia Lieutenant Governor Winsome Earle-Sears on Tuesday announced her new “Axe the Tax” initiative, renewing Republican efforts to eliminate the state’s car tax and end income taxes on tipped wages.

Earle-Sears, who is running to be the next governor of Virginia, said the state is financially prepared to phase out the controversial personal property tax on vehicles, citing Virginia’s robust rainy day and reserve funds, as well as recent budget surpluses.

The car tax, long a political flashpoint, is levied by localities and is one of their primary sources of revenue, alongside real estate taxes. Local leaders and Democrats in the General Assembly have repeatedly cautioned that eliminating the tax could significantly reduce funding for education, public safety, and local services.

It’s not an unfunded mandate on our localities, so they don’t have to worry about where the money would come. We have put money into our two savings accounts, the Virginia Rainy Day fund and the Virginia Ready Reserve Fund. So we’re well funded. We have the money. We’ve put money into so many things, fully funded some of our schools, maintenance, you name it, says Earle-Sears.

In the 2024 session, Gov. Glenn Youngkin’s proposal to offer a $150–$300 car tax credit for low- to moderate-income Virginians was blocked by Democratic majorities in both chambers.

Some Northern Virginia jurisdictions have signaled support for the proposal over the past year, while others remain cautious.

• Prince William County leaders showed openness to the concept, but with caveats. Neabsco District Supervisor Vic Angry supports reductions, but emphasized relief should be “across the board,” not income-restricted. County Board Chair Deshundra Jefferson told 7News the county is “not in a position to eliminate the tax,” but plans to consider relief. Coles District Supervisor Yesli Vega added that high taxes drive up the cost of living, calling for broader “common sense” reforms.
• In Loudoun County, where a $250 million surplus is fueled by data center revenue, Leesburg District Supervisor Kristen Umstattd expressed support for state relief, saying she backs incremental steps like lowering the car tax rate and eliminating the vehicle license fee by 2026.
• In Stafford County, Supervisor Monica Gary said the car tax generates $70 million locally and warned of possible consequences for school funding. Fellow Stafford Supervisor Deuntay Diggs said he supports car tax relief “as long as it is implemented responsibly and does not result in an unfunded mandate.”
• In Fairfax County, a $260 million surplus in 2024 helped fix roads, schools, public safety, and other community services. Board of Supervisors Chairman Jeffrey C. McKay tells 7News the county supports eliminating the tax if there is a reliable replacement for the lost local revenue.

It is time. With that extra money, you could probably buy a nicer car. You could buy a second car. All it does is continue to put more money into our economy in the right way, stirs growth, [and] hires more people, says Earle-Sears.

Democratic legislators have instead prioritized other tax policies, including a state child tax credit and changes to the earned income tax credit.

Sears said she hopes Democrats “come along with us and say yes, it is time.” She also pledged to pursue eliminating state income tax on tips, calling it a way to boost take-home pay for hourly workers.

No tax on tips. We’re going to try to get rid of that too! Money in Your Pocket. We know how to do this. We’ve done it before, says Earle-Sears.