Fuming Over Tax Break for Hybrids

Arlington County's leadership on environmental initiatives could cost people who own conventional gas-guzzling cars even more money in personal property taxes in the coming year than those who drive cars that operate on clean fuels.

Under a plan proposed by County Manager Ron Carlee, beginning July 1, the county will offer a 30 percent tax rebate to people who own conventional-fuel cars, down from the 33 percent they were given last year. The money comes from a $31.3 million state car-tax relief fund.

The county, which is promoting a wide variety of green initiatives, last year introduced a special tax subsidy for people who bought "special clean fuel vehicles," which include most hybrids.

It gave owners a 100 percent rebate on personal property taxes, up to $20,000 in assessed value, for hybrid cars, giving some residents tax savings of more than $500.

Partly because of the popularity of the tax incentive, the number of hybrids on the road in Arlington has increased dramatically. There are now 2,100 hybrids registered in the county, up from about half that number two years ago.

But the overall pot of money available from the state has not changed, so a bigger part of the block grant is going to provide rebates for hybrid owners.

"The state gives us a fixed amount, and we need to spread it out more thinly," said Richard Stephenson, Arlington's budget director.

He said county officials have decided they want to keep the commitment to offer the tax incentive to people who buy hybrids. "It's a policy goal of the county to encourage the purchase of clean-fuel vehicles," he said.

The policy raised some concerns last year because some residents thought it was unfair, and the eroding tax relief for conventional cars is raising additional questions.

"The non-hybrids are going to end up complaining, and I can't blame them," said Robert Howe, who bought a Prius hatchback last February. He said he bought the car before he heard about the tax incentive.

Arlington resident Wayne Kubicki thinks the program makes little sense, because it gives big tax breaks to people who are affluent enough to buy high-priced hybrid cars. If Carlee's plan is adopted by the board, owners of conventional-fuel cars, even if they get excellent gas mileage, will pay disproportionately more than they did last year, he said.

"Everybody else's car tax bill is going up," he said. "That big a credit for hybrids seems silly to me."