Refunds to be cut for cars not using clean fuel

WASHINGTON (Map, News) - Arlington drivers who own cars that use conventional fuels will get smaller refunds from the county this year to pay for an increasing number of their neighbors who drive Priuses and other clean-fuel autos.

The county will pay owners of conventional-fuel vehicles 3 percent less as clean-fuel drivers eat up Arlington’s fixed amount of subsidy money, county officials said.

Arlington taxes drivers 5 percent of their cars’ assessed values after exempting the first $3,000 of value. The county last year decided to fully subsidize clean-fuel vehicles up to $20,000.

Drivers of conventional-fuel cars valued between $3,000 and $20,000 last year received a 33 percent tax subsidy.

The driver of a conventional-fuel car valued at $7,340 — the county’s average — would have been taxed $217 last year and reimbursed $71.61. This year, with a 30 percent tax subsidy, the driver would be taxed the same amount but reimbursed $65.10.

“The state froze the amount of car tax relief they provide to localities two years ago,” county finance director Richard Stephenson said. “As the number of vehicles in the county goes up, we have less money to spread around.”

Drivers who own cars that are listed on the Virginia Department of Motor Vehicles clean-fuel list still will receive a 100 percent tax reimbursement up to $20,000, Stephenson said. But as the number of clean-fuel vehicles in the county grows, more of Arlington’s $31.3 million subsidy is taken, forcing the county to reduce the subsidy for other drivers, he said.

Last year, an estimated 2,000 clean-fuel vehicles were in the county. That number is projected to grow to 3,100 this year.

tluntz@dcexaminer.com

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