Vehicle Sales Tax To Go Up July 1
Lynchburg, VA - If you've been wanting to buy a new vehicle, now may be the best time to make it happen.
Starting July 1, sales tax for vehicles in Virginia will jump from 3% to 4%.
Managers at Apple Ford of Lynchburg say they expect that to change in the coming days as word gets out.
Butch Barley says he is a smart shopper and knows what he's looking for.
"I'm looking at a Mustang GT," Barley said. "The price, value, resale."
Like many people, Barley says the 1% sales tax increase will not cause him into rushing to buy.
"It's just something else they're going to get us with. So we're just going to have to take it, accept it, and go on," Barley said.
Apple Ford General Sales Manager Eddie Howell says he's confident the adjustment will not affect business.
"On a $30,000 car, you're looking at 300 dollars," Howell said. "I don't think that it would necessarily detour anyone from buying an automobile because it's a need."
The General Assembly approved the motor vehicle tax in an effort to raise $6 billion dollars by 2017 to help pay for transportation infrastructure.
Lynchburg College Economist Joe Turek says it's hard to predict the future, but says consumers should not be too concerned.
"Virginia and all the other states are facing the need to invest in the infrastructure. A sound infrastructure is a key to long term competitive advantage," Turek said. "I don't think I would be too worried that in the future we're going to see that tax go through the roof."
The sales tax will only apply to the amount you pay for the vehicle minus any rebates.