VA HB566

Creates enhanced tangible personal property tax relief beginning in tax year 2027, eliminating taxes on the first $5,000 of assessed value for qualifying vehicles by setting the tax rate at no more than $0.000001 per $100

Requires the Commonwealth to provide additional reimbursements to localities beyond the existing $950 million annual allocation to cover the enhanced tax relief

Increases the tax-exempt portion by an additional $5,000 (up to $20,000 maximum) in any year a locality's revenues grow by 5% or more

Maintains the existing tangible personal property tax relief structure for vehicle values between the eligible assessed value threshold and $20,000

Mandates that localities receiving state reimbursements must provide the enhanced relief before applying the standard tangible personal property tax relief