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not have major shopping centers. He said returning the sales tax to localities on the basis of overall population or school-aged population instead of point of sale would be fairer, but would still fall short of replacing personal property tax revenue for the localities.
Sen. Miller said he is keeping an open mind, bui he does not expect the bill to be voted out of committee.
Both Sen. Miller and Del. Jay Katzen, R-31st District, are well aware of growing opposition to personal property taxes, but they do not see any alternative for localities that rely on the tax.
Sen. Miller noted that when the state’s 3 percent titling tax is considered also, someone purchasing a moderately priced new car for $20,000 will pay $600 to the state and may then be paying another $400 in personal property taxes.
Sen., Colgan’s proposal will be introduced as a bill in the upcoming assembly session, but neither Del. Katzen nor Sen. Miller expects it to be adopted.
Del. Katzen said he would oppose the increase in the sales tax as he would oppose any tax increase.
He noted that Gov. George Allen has, also said he will veto any tax increase, and he does not believe the votes are there to override a veto.
Del. Katzen said "anomaly" in the personal property tax system is that new clean burning cars are taxed more than older ones that are "fouling the air.”
In a related issue, Del. Katzen will be introducing legislation to reduce the personal property assessment on vintage airplanes. That would benefit owners of aircraft at the Bealeton Flying Circus.
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