Vehicle License Fee Reduced To Zero In Loudoun County With Supervisors' Approval

LOUDOUN COUNTY, VA — Loudoun County residents will have a slightly lower bill owned to the county for their vehicles.

On Wednesday, the Loudoun County Board of Supervisors took final action to eliminate the $25 vehicle license fee, effective at the start of 2025. The fee is not related to the registration fees paid to the DMV. It is typically billed by the county treasurer's office with personal property tax bills.

The fee elimination applies to vehicles within the county and towns that don't have their own vehicle license fee. Towns with their own fees aren't affected by the board's action. However, However, the board is providing towns that remove their vehicle license fees in 2025 with funds to supplement lost revenue. According to the Loudoun Times, the Coalition of Loudoun Towns expressed concerns of "political pressure" for towns within the county to remove their own vehicle license fees. The coalition called for funds to help offset the town budget impacts of removing vehicle license fees.

The county's vehicle license fee elimination will remove an estimated $7.8 million in county revenue in the 2025 fiscal year. That's a portion of the estimated $159 million leftover fund balance for fiscal year 2025 that County Administrator Tim Hemstreet shared with supervisors in November.