Virginia reduces vehicle registration fees

Residents of the Commonwealth of Virginia are going to see the cost of their vehicle registration fees reduced by as much as 25% beginning on July 1.

This news via a press release made by the Virginia Department of Motor Vehicles comes as a result of the passing of a comprehensive transportation package that included a $10 reduction in the cost of those fees. This package was approved by the Virginia General Assembly and signed into law by Governor Ralph Northam.

The legislation, which was carried by House Speaker Eileen Filler-Corn and Senate Majority Leader Richard L. Saslaw, was crafted to create sustainable funding for transit, rail, and roads. The package also seeks to allow for investment in systemic safety improvements and support a multimodal system in Virginia.

“During this legislative session, the General Assembly delivered on our promise to improve the lives of Virginians in every corner of the Commonwealth,” stated Speaker of the House of Delegates Eileen Filler-Corn in a press release. “I am proud that, by passing this important legislation, we have made our roads safer and created a sustainable transportation funding structure, all while lowering vehicle registration fees so Virginians can keep more of their hard-earned money.These measures are more critical now than ever as we move into the Commonwealth’s economic recovery from the COVID-19 pandemic and build our shared future together.”

“The future is here, and it is time to modernize our transportation system,” stated Senate Majority Leader Dick Saslaw in the same press release. “This legislation will make our roads and highways safer and, once we move past the COVID-19 pandemic, provide the revenue we need to address our key transportation needs.”

The legislation also repeals the annual $64 fee on all-electric and alternative fuel vehicles. There are some tradeoffs however, one being a five-cent increase in the statewide gas tax that will come this and next year. There will also be an implementation of a tiered highway use fee that will be based on a vehicle’s fuel efficiency.

The average fee is expected to be $19 in the first for most vehicles, this number represents 85% of the difference between the amount of fuel tax on a vehicle that gets the average 23.7 mpg and the amount of fuel tax on a more fuel-efficient vehicle. This would come to a 15% discount based on the vehicle’s fuel economy.

“The challenge was to identify a system that would maintain incentives for fuel-efficient vehicles while creating sustainable funding that was fair for all drivers,” stated Nick Donohue, Director of the Office of Intermodal Planning and Investment in the press release.

The new law takes effect on July 1 and the fee changes will be reflected in vehicle registration renewal notices that the Department of Motor Vehicles (DMV) will be sent to customers whose registration will expire in July.