County officials are considering changing the method used to value vehicles. It's a move they say would generate more revenue at a time when the county is facing an estimated $4.2 million budget shortfall for the 2010-11 fiscal year. The current budget is $158.9 million.

The Montgomery County Board of Supervisors voiced support for the change Monday night. Some supervisors said they support the approach because it would help spread the tax burden to more people other than property owners -- and more people own vehicles than own real estate.

Right now, localities in the state use different methods to value vehicles for tax purposes. That includes using the vehicle's estimated retail value -- which is the highest possible value -- or using the trade value or using the loan value, which is the lowest possible value.

Montgomery County currently uses loan value. The change would be to use the trade value.

Marc Magruder, the county's budget manager, used two common vehicles for comparison: a 2009 Honda Accord and a 2003 Chevy Cavalier.

Now, the Honda owner has an actual tax bill of $129. If the trade value of the vehicle was used it would increase that bill to $170.

The Chevy owner now pays $23 in tax, and, if it's changed, the bill would increase to $30.

County Administrator Craig Meadows said Monday he was looking for guidance from supervisors on the tax change as county officials continue working to prepare the next budget, which starts in July.

"We've got to find ways to raise additional revenue or reduce services," he said.

Changing the taxation method could bring the county $700,000 more in revenue than the current method, officials said.

The commissioner of revenue has the authority to administratively change the method, but officials said they wanted to get the board's thoughts on the idea.

The change could go into effect for the Dec. 5 billing, said Ruth Richey, the county's public information director.

The average tax bill would increase, but officials said that, unlike real estate, each year vehicles depreciate in value. That means less tax would be paid in subsequent years.

Personal property that is taxed includes cars, vans, pickup trucks, motorcycles, boats and trailers.

Personal property tax collections for Montgomery County are at an estimated $8.5 million for the current fiscal year.

With the personal property assessments, personal vehicles that are more than 20 years old are not taxed and personal vehicles valued at $1,000 or less are not taxed.

Also, vehicles that have a mileage of 80,000 miles or more are provided additional reductions depending on the mileage and class of the vehicle, Magruder said.

Meadows said last month that he doesn't see any easy choices to be made in the county's budget because of the shortfall.

Officials have said there will be no salary increases for county employees and no new positions going into the next budget year.

The estimated $4.2 million shortfall includes state budget cuts and $1.1 million less county revenue, including $748,775 in local sales tax revenue with people not spending as much.

The supervisors are expected to discuss the budget again later this month.