Governor Glenn Youngkin approved Delegate Phillip Scott’s (R-Spotsylvania) HB 1239, which will allow localities to reduce the property tax rate imposed on cars without impacting other personal property tax.
“With prices soaring on the necessities that families and individuals use every day, Virginians are in dire need of relief to their wallets. I am proud to sign this legislation and work with the General Assembly to empower localities to lower the cost of living,” Youngkin said in a Monday press release.
In January, Scott told a Finance subcommittee that some used vehicles’ values are actually rising, leading to higher taxes being imposed on Virginians.
“The purpose for this bill is to just create a separate classification for personal property in the form of personal vehicles. What we’ve seen over the past couple years, and we expect to continue to see, is the assess value of vehicles to increase by about 20 to 40 percent. And this includes used vehicles. Where normally they’d depreciate in value, we’re seeing them appreciate in value, and this is causing the personal property tax to go up,” Scott said.
Stafford County Commissioner of the Revenue Scott Mayausky told the committee that under existing law, localities would find themselves collecting excessive taxes.
“So for localities to lower that vehicle rate, they’re probably in a position where they have to lower all of their personal property tax rates, which would have just a devastating impact on their revenue base, he said.
Scott said the bill gives the localities the option to lower vehicle tax rates separately from other property tax.
The bill passed out of the General Assembly with unanimous support in both chambers, and includes an emergency clause to make it apply to tax years beginning on or after January 1, 2022, but before January 1, 2025.
Youngkin said, “Many Virginians are struggling due to rising prices, now it is up to local leaders across Virginia to step up and fight inflation with real tax relief. I look forward to continuing our work to deliver real tax relief for all Virginians.”
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Eric Burk is a reporter at The Virginia Star and The Star News Network. Email tips to [email protected].
Background photo “Phillip Scott” by Phillip Scott for Delegate.
