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Bill

HB 566

Tangible personal property tax relief; rate of taxation.

2026 Regular Session Introduced by Mike Cherry and 7 co-sponsors

HB 566 adjusts Virginia's tangible personal property tax rates, affecting business equipment taxation and state/local government revenues with unclear net fiscal consequences.

Assigned HFIN sub: Subcommittee #2
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Bill Summary · HB 566

Legislative bill overview

HB 566 proposes to modify Virginia's tangible personal property tax rate or relief mechanisms. The bill has been referred to the House Finance Committee and its subcommittee, with a fiscal impact statement already prepared by the tax division, indicating significant budgetary considerations.

Why is this important

Tangible personal property taxes affect businesses, manufacturers, and equipment owners across Virginia by taxing items like machinery, vehicles, and inventory. Changes to these tax rates directly impact state revenue and business operating costs, making this relevant to economic competitiveness and local government funding that relies on these tax revenues.

Potential points of contention

  • Revenue impact: Reducing tangible personal property tax rates will decrease state and local government revenues unless offset by other measures or economic growth
  • Equity concerns: Businesses with significant equipment holdings may benefit disproportionately compared to service-based businesses or individuals, raising fairness questions
  • Local government funding: Virginia localities depend on tangible personal property taxes; relief could strain funding for schools, infrastructure, and services without state compensation

Compiled from official sources — confirm details with the bill’s official record.

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