Vehicle License Fee To Be Eliminated With Final Action By Loudoun Supervisors

LOUDOUN COUNTY, VA — Loudoun County vehicle owners will see their annual vehicle license fee removed from their tax bills.

The full Loudoun County Board of Supervisors on Wednesday is set to vote on an ordinance amendment to codify the $25 fee removal. That comes after the Board of Supervisors Finance/Government Operations and Economic Development Committee voted to recommend eliminating the fee to the full board. The full board voted on Dec. 3 to remove the fee and seek an ordinance amendment to make the change effective for the 2025 tax year.

With the approval, the board is seeking the fee removal to be incorporated into the upcoming budget proposal. County Administrator Tim Hemstreet had told the board committee that the fee elimination would bring the county's fiscal year 2025 leftover fund balance from $159 million to $150 million.

The fee elimination does not affect towns within Loudoun County that charge their own vehicle license fee. However, the board is providing towns that remove their vehicle license fees 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.

In November, the board committee also voted to request a budget with a 50-cent reduction of the personal property tax on vehicles. That would reduce the rate from $4.15 to $3.48 per $100 of assessed value. Tax rates are subject to approval by the Board of Supervisors during the budget process. The county administrator typically proposes the budget to the Board of Supervisors in February.