RICHMOND, Va. – Governor Youngkin signed into law a bill that empowers localities to cut car tax rates.
HB1239, a bill sponsored by Delegate Phillip A. Scott, empowers localities to cut car tax rates and is said to prevent huge tax hikes that are driven by dramatic increases in used vehicle values.
Youngkin announced the signed the legislation Monday.
“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,” said Governor Youngkin. “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.”
According to Youngkin, if local government officials do not address the increased value of used vehicles, then taxpayers are facing significant tax increases as Virginia constitutionally mandates 100% fair market value in property tax assessments.
Before Youngkin signed this bill, car tax rates couldn't be lower than Virginia's general rate of personal property. This created a roadblock to cutting car taxes.
To read the recently signed bill, click here.