Virginia 2023 Regular Session

Virginia House Bill HB1402

Introduced

11/30/22

Refer

11/30/22

Caption

Personal property taxes; valuation.

Impact

If passed, HB1402 would significantly impact how local governments assess personal property taxes. It aims to clarify how machinery and tools, especially those used in businesses, are valued for tax purposes. The bill stipulates that, starting on January 1, 2024, these properties must be valued using the federal depreciation method, specifically the Modified Accelerated Cost Recovery System (MACRS). This shift to a federal standard may streamline the assessment process while possibly reducing discrepancies in local property valuations.

Summary

House Bill 1402 focuses on amending Virginia's regulations regarding the valuation of personal property, including tangible personal property such as machinery and tools. The key provisions in the bill include updating sections of the Code of Virginia related to the classification and valuation methods for various types of tangible personal property. It seeks to implement a more standardized approach for assessing the value of personal property across different localities in Virginia. This includes how different types of vehicles, equipment, and personal properties will be appraised for tax purposes.

Contention

Notable points of contention around HB1402 revolve around how the new valuation methods could affect local revenue from property taxes. Some stakeholders may argue that these changes could lead to less local control over tax assessments. There is concern that a standardized valuation approach could disproportionately affect certain local economies, particularly those that may rely on outdated valuation methods more suited to their unique circumstances. The requirement for local governments to adhere to federal guidelines may also be seen as an overreach of state authority into localized fiscal matters.

Latest HB1402 Activity

Companion Bills

No companion bills found.

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