Virginia Democrats set to increase towing charges

Virginia towing rates could increase soon under legislation that is advancing to the governor’s desk.

Senate Bill 1332 was introduced by Sen. Dave Marsden (D-Fairfax) and cleared the House Floor on Thursday. This brings it closer to approval. The bill would increase the initial towing fee from $150 to $200 for passenger cars, a rate that was deemed reasonable by a state study.

The bill also ensures localities have the right to set towing fees and rates, as Marsden stressed during a recent Senate Commerce and Labor Committee Hearing.

Marsden stated that “this legislation preserves all consumer rights and local regulatory authority.”

The original proposal sought to transfer the oversight of trespassing towing fees from the local governments to State Corporation Commission (SCC), however, lawmakers chose to keep the rate-setting authority at the local levels.

The measure extends another provision that allows towing operators to charge fuel surcharge fees in areas where local government has set regulations. The legislation encourages localities to review their towing fees if they haven’t done so by December 31.

SCC involvement in this debate was a result of a directive from the 2023 General Assembly to study towing fees. The Eixenberger Group LLC surveyed almost 200 towing companies for the commission to gauge concerns about costs. The study concluded that a proposed rate of $210 was fair, based on the industry’s costs.

Marsden assured lawmakers that the bill does not mandate rate increases, but rather allows localities adjust fees within a specified range.

This legislation allows localities the option to set their towing rates according to their existing process, between $135 and $200. However, it does not require any localities to increase towing fees. Marsden, speaking to the Senate last Thursday, said that it was a simple local option.

The bill is now on its way to Gov. Virginia’s towing business and local governments are waiting for the final decision. A companion measure, House Bill 22,14, failed in the House. SB 1332 is the only remaining option for the proposed change.