RICHMOND, Va. (WFXR) – Gov. Glenn Youngkin has signed a new law meant to empower localities across the commonwealth to cut tax rates and prevent 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. 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.”

Gov. Glenn Youngkin (R-VA)

If local government leadership does not address the increased value of used vehicles, then taxpayers will likely be facing significant increases in taxes as the Commonwealth of Virginia constitutionally mandates 100 percent fair market value in property tax assessments.

Prior to this bill’s passage, car tax rates could not be lower than the general rate of personal property which created a roadblock for cutting taxes on vehicles.

To read HB 1239, sponsored by Del. Phillip A. Scott (VA-District 88), click here.