VA Dems nix Youngkin’s car tax relief plan, propose tax rebates instead in proposed budgets

RICHMOND, Va. (WRIC) - The Democratic-controlled Virginia House of Delegates and Virginia Senate has released its proposed budget amendments to the two-year state budget currently in effect. 

“We tried to put together a budget that addressed the needs and concerns of working Virginia families,” Delegate Luke Torian (D-Prince William), who serves as Chair of the House Appropriations Committee, told 8News. 

Both the House and Senate’s proposed amendments include tax rebates of $200 for individual filers and $400 for joint filers. However, they don’t include Governor Glenn Youngkin’s (R) car tax relief proposal or his plans to end taxes on tips for hospitality workers. 

“We expect rebate checks to go out by October 15th, 2025. If we had gone with the recommendation of the governor on car tax relief, that would have taken much longer,” Torian explained. 

“We’d still like to see something done on the car tax. We would like to see something done in tips, but the focus is money gets back to Virginians and this budget does that,” said Senate Minority Leader Ryan McDougle (R-Hanover). 

Both budgets also include a $1,000 bonus for teachers as well as a bonus of at least 1% (1% in House budget/1.5% in Senate budget) for state employees on top of the 3% raise they are already set to receive next fiscal year. 

“We recognize that our teachers are very important to the education of our young sons and daughters,” Torian said.

“Giving those one-time compensation levels up and above the salaries that we already programmed in seemed to make sense with the type of money that was coming in with the budget,” McDougle told 8News. 

The budget process is far from over. The House and Senate will have to come up with a compromised version to send to Governor Glenn Youngkin for his consideration before the General Assembly session ends later this month.