(The Center Square) – Gov. Glenn Youngkin signed multiple tax-related bills into law, changing infrastructure funding, business taxation and property classification in Virginia.
The bills are part of a broader package of 180 bills signed by the governor during this session. The deadline to veto, amend or approve the remaining bills is March 24.
One of the measures, HB 1579, extends a local gas road improvement tax and the Virginia Coalfield Economic Development Authority Tax, ensuring funding for infrastructure and economic developments in Southwest Virginia.
The Virginia Department of Taxation noted in the impact statement for HB 1579 that the revenue impact is “unknown” and gives no public estimate of how much these localities will generate from the tax extension.
“This bill would have an unknown impact on revenues in the localities that comprise the VCEDA. This bill would have no impact on state revenues.”
This tax will benefit the counties of Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, Wise and the City of Norton. Under the current law, these counties impose a severance tax on coal and gas extraction, capped at 1% of the gross receipts from mineral sales. The money is split, with 75% going to a local road improvement fund and 25% to the Virginia Coalfield Economic Development Authority for economic development.
HB 1729 will extend sales, use tax exemptions for aircraft components, and allow aviation businesses to continue receiving tax breaks on parts and maintenance.
SB 942 is identical to HB 1729, extends sales tax and use tax exemption for aircraft components through July 1, 2030, and applies to parts, engines and supplies used for aircraft maintenance, repairs and reconditioning.
Another bill signed by the governor, HB 2128, expands the authority of local government to impose civil penalties on derelict buildings, including non-residential properties. Under this new law, localities are able to fine the owners of these buildings up to $500 per month. Previously, the penalties only applied to residential properties.
HB 1682 updates tax rules for surplus lines insurance brokers that handle policies unavailable through standard insurance providers. This bill clarifies that they are exempt from annual taxes, license fees or penalties on certain policies.
SB 1269, an identical bill, and HB 1682 confirm that surplus lines insurance brokers are exempt from annual taxes, license fees or penalties on policies placed for a specific commercial transit system in Northern Virginia in 2025.
In transportation, HB 1841 modifies the motor vehicle sales and use tax to account for abandoned vehicles that are not sold at auction, which will change how they are taxed and processed.
HB 1896 establishes a real property tax exemption by classification, adjusting how certain properties qualify for tax breaks under state law.
