Governor signs legislation empowering localities to lower car tax rates

(Car dealerships feeling pandemic impact on used car sales)
Published: Mar. 28, 2022 at 3:03 PM EDT
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RICHMOND, Va. (WDBJ/Governor’s Office Release) - Governor Glenn Youngkin has signed into law House Bill 1239, empowering Virginia localities to cut car tax rates and prevent what he says are “huge tax hikes driven by dramatic increases in used vehicle values.”

“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.”

Youngkin continues, “If local government leadership does not address the increased value of used vehicles, then taxpayers are facing significant tax increases, as the Commonwealth of Virginia constitutionally mandates 100% fair market value in property tax assessments.”

The governor says before the bill’s passage, car tax rates were not allowed to be lower than the general rate of personal property, which created a roadblock to cutting car taxes.

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