Virginia House Bill HB2340

Virginia 2023 Regular Session

• Introduced: 1/12/23
• Refer: 1/12/23
• Report Pass: 1/26/23
• Engrossed: 1/31/23
• Refer: 2/2/23

Caption

Motor vehicle license plates and registration; increases taxes and penalties.

Impact

The changes brought by HB 2340 have implications for how local governments can regulate vehicle registration in Virginia. By enabling localities to increase license taxes and penalties, the bill aims to enhance compliance with motor vehicle registration requirements and decrease the number of unregistered vehicles on the road. This could potentially lead to increased revenue for localities while also ensuring that all vehicle owners are adhering to state laws on registration, promoting overall public safety and accountability.

Summary

House Bill 2340 focuses on amending regulations related to motor vehicle license plates and the associated taxes and penalties within Virginia. The bill proposes to increase the annual license tax that localities can impose on certain motor vehicles that do not display current license plates from $100 to $150. This adjustment reflects a response to rising administrative costs and the need for compliance among vehicle owners regarding motor vehicle registration laws. Additionally, it allows localities to impose higher penalties for unregistered vehicles beyond a specified grace period.

Contention

Notable points of contention surrounding HB 2340 include debates over the extent of local government authority to impose taxes and penalties. Critics may argue that raising these tax rates could disproportionately affect low-income residents who may struggle with the added financial burden. Moreover, there may be concerns regarding the effectiveness of these measures in actually reducing the number of unregistered vehicles, prompting discussions about alternative solutions for enhancing vehicle compliance without increasing taxes or penalties.