HB 566 Virginia House of Delegates · 2026 Regular Session

Tangible personal property tax relief; rate of taxation.

Summary

Tangible personal property tax relief; rate of taxation. Requires, for tax year 2027 and all tax years thereafter, each county, city, or town to reduce its local tax rate on qualifying vehicles to no greater than $0.000001 per $100 of the eligible assessed value of the qualifying vehicle. The bill defines "eligible assessed value" as $5,000 of the assessed value of a qualifying vehicle. For tax year 2028 and all tax years thereafter, for any year in which the revenues of a county, city, or town grow by five percent or more, the bill provides that the eligible assessed value applied in such county, city, or town shall increase by an additional $5,000 until such time that the eligible assessed value equals $20,000.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 13, 2026 Last action Feb 18, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Finance Substitute · 4 edits

MODERATE

The bill was amended from its original introduction to a Finance Committee substitute version, adding a new section (58.1-3524.1) that creates enhanced tangible personal property tax relief for qualifying vehicles. The original bill only modified section 58.1-3524, while the substitute version adds a separate section for enhanced relief starting in 2027, effectively splitting the relief into two tiers. This change expands the scope of the legislation by creating a new statutory provision rather than just amending the existing one.

Scope change

The bill's scope expanded from amending only section 58.1-3524 to adding a new section 58.1-3524.1 for enhanced relief, while the original section was also amended to reference the new enhanced relief provision.

REQUIREMENT

Added new section 58.1-3524.1 establishing enhanced tangible personal property tax relief for tax years 2027 and beyond, creating a separate statutory provision for enhanced relief.

Added mandatory language requiring counties, cities, and towns to provide enhanced relief under the new section before providing the standard relief required under the original section for tax years 2027 and later.

TIMELINE

Modified the original section to change the end date of enhanced relief from 2026 to 2027, with the new enhanced relief section taking effect in 2027.

TECHNICAL

Changed the bill title from 'Introduced' to 'Amendment in the Nature of a Substitute' indicating it was revised by the House Committee on Finance.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 10, 2026

Lower · Passed

Subcommittee recommends laying on the table (7-Y 3-N)

lower

Feb 10, 2026

Lower · Passed

House subcommittee offered

lower

Feb 3, 2026

Committee

Assigned HFIN sub: Subcommittee #2

lower

Jan 13, 2026

Committee

Referred to Committee on Finance

lower

1 primary · 8 co-sponsors