Yes. Virginia State Code requires that all Virginia localities value tangible personal property as of a fixed date. This date, often referred to as “tax day," is January 1, regardless of when a vehicle may have been purchased or located in Loudoun County.
Loudoun County uses publications from The National Automobile Dealers Association (NADA) as the primary valuation guides for personal property assessment purposes, as do all 134 cities and counties in Virginia. In arriving at the used vehicle values published in its valuation guides, NADA collects and analyzes over half a million auto-related transactions per month, including both wholesale and retail sales. NADA collects its data from a number of sources, including automobile manufacturers, new and used vehicle dealers and over 165 automobile auctions nationwide. Additionally, NADA considers economic trends, geographic location, weather and environmental factors in the analysis of its automobile valuation data.
Due to various market factors, values for some vehicles may be higher as of January 1 of the current year than they were on January 1 of the previous year. This rise in vehicle value may be due to increased demand or diminished supply for a particular vehicle model or vehicle type, gas price fluctuations or other factors affecting vehicle sales, such as government or manufacturer incentives.
Vehicle values in 2022 are higher due to the lingering effects of the COVID-19 pandemic and includes more vehicle makes and models than would usually be affected in a normal year. Car manufacturing plants are encountering computer chip shortages creating a reduction in the availability of new cars. The lack of new cars generated more sales in the used car market and is driving up used car values. Also, vehicle owners are holding onto their current vehicles longer due to economic factors brought on by COVID-19, creating a decrease in the number of used cars on the market. Market experts believe this will likely continue until car manufacturers can meet market demands.