In an attempt to combat rising inflation, Governor Youngkin signed legislation that will allow local governments to lower property taxes on vehicles.
House Bill 1239 allows local jurisdictions to put vehicle taxes in a different classification than the standard personal property tax. The bill allows these taxes to be lower than the personal property tax, but they cannot be higher than the personal property tax. The logic behind the need for the bill is that because inflation is causing increased value in used vehicles, there will now be higher taxes with vehicle purchases.
Youngkin said in a statement:
“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 continued by hoping local officials would would use the legislation to help Virginians struggling during this time:
“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.”
Further relief may be coming as the General Assembly’s special session is set to meet on Monday to discuss the Virginia budget and further bills that may be signed by Youngkin. Those include a proposal to implement broad tax cuts by doubling the standard deduction and bills to provide tax rebates, grocery tax reductions and gas tax reductions.