RICHMOND, Va. (WRIC) — Governor Glenn Younkin signed House Bill 1239 into law today, which empowers localities to cut tax rates on cars and to prevent tax hikes from the rise in used vehicle values.
According to a press release from the Office of the Governor, “If local government leadership does not address the increased value of used vehicles, then taxpayers are facing significant tax increases.”
The bill allows localities to classify certain items of property, which are listed in the bill, differently from general personal property. These new classifications of property can not be taxed at a rate higher than they would normally be taxed, in an effort to encourage localities to levy a lower tax rate.
While many of the items of property include aircraft and boats, the bill includes several types of motor vehicles. Most common among these types of cars are:
- Vehicles equipped to provide transportation to physically handicapped people
- Vehicles owned or leased by volunteer or auxiliary EMS or fire firelighters, uniformed members of the Virginia Defense Force and auxiliary, reserve, volunteer, or special deputy sheriffs
- Privately owned motor homes used for recreation
- Cars that are powered solely by electricity
- Antique cars
“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.”
HB1239 was sponsored by Delegate Phillip A. Scott (R-88th District). You can read the bill in its entirety here.