Virginia HB 1205

Motor vehicles; insurance; highway use fee; tangible personal property tax relief for certain vehicles. Removes the highway use fee for fuel-efficient vehicles, and maintains the same highway use fee for electric vehicles and alternative fuel vehicles. The bill removes the prohibition on motor vehicle insurers establishing a repair facility network. Under current law, insurers are prohibited from requiring an insured or claimant to utilize designated replacement or repair facilities or services as a prerequisite to settling or paying any claim arising under a policy or policies of insurance. The bill also directs each county, city, or town that receives annual reimbursements from the Commonwealth for providing tangible personal property tax relief on qualifying vehicles to, beginning in tax year 2027, ensure that after first reimbursing certain tax attributable to qualifying vehicles leased by active duty members of the United States military, as is currently required by law, (i) no qualifying vehicle owned by an individual with an annual household income in excess of $200,000 receives any reimbursement for such vehicle and (ii) the remainder of the reimbursement provided to such locality is distributed based on a sliding scale for household incomes of residents of such locality, adopted by an ordinance of the governing body of such locality, as described in the bill.