Richmond, Virginia (January 25, 2005) – Flanked at a Capitol news conference by Speaker of the House William J. Howell (R-Stafford), the entire House Republican leadership, and other Caucus members, the Chairman of the House Appropriations Committee, Vincent F. Callahan, Jr., today pledged that the House of Delegates would vote to put the planned phase-out of the personal property tax on privately owned vehicles – the car tax – back on schedule.

“In my nearly forty years as a member of the General Assembly, I can’t think of a commitment we made to the people of Virginia that was more important to them than the promise to phase-out the car tax,” said Chairman Callahan. “Last year’s budget agreement instituted a cap on this promised relief. We need to pledge now to end this interruption and honor our commitment to the people of Virginia.

“The legislation we are announcing today will begin this process by lifting the cap imposed on car tax relief by last year’s budget. This proposal will also end the inequities currently being experienced by some of Virginia’s localities, keeping a commitment made to local governments at the inception of the plan to phase-out the car tax in 1998.”

House Majority Leader H. Morgan Griffith (R-Salem), House Republican Caucus Chairman R. Steven “Steve” Landes (R-Augusta), and House Republican Whip M. Kirkland “Kirk” Cox (R-Colonial Heights) joined Speaker Howell and House Appropriations Committee Chairman Vincent F. Callahan, Jr. (R-McLean) for the announcement of the proposal. In 1998, Delegate Callahan and Senator John Chichester carried companion legislation that successfully initiated the phase-out of the personal property tax on privately-owned vehicles.

“Our first step will be to amend the provisions of Senate Bill 5005 from the 2004 Special Session,” declared Chairman Callahan. “This change will begin the process of putting the car tax back on track. When it is reinstituted, beginning with the 2006-2008 biennial budget, a planned system of revenue ‘triggers’ will be in force, ensuring that once again tax relief will be brought to Virginians as the required funds are received by the Commonwealth. By putting triggers back into effect, we will be keeping the promise made to our citizens in 1998, and doing so in a fiscally responsible manner.”

“I’m delighted that Virginia’s economy is showing extraordinary strength. We are now experiencing record-setting revenues and accompanying budget surpluses, now exceeding $1 billion. In light of these surpluses and because of our continuing desire to help hard-working Virginians and their families, we are in a position to fulfill the commitments we have made to Virginia’s citizens and our local governments. When we enacted legislation – with strong, bipartisan support – to phase-out the car tax in 1998, Virginians rightly saw it as the fulfillment of a promise made,” remarked Speaker Howell. “By taking action now to ensure that promise is kept, we will be taking another positive step forward to restore the people’s trust in their government and its leaders.”