RICHMOND — Virginia drivers could soon see higher towing fees under legislation that’s advancing toward the governor’s desk, but the decision to raise rates will remain in the hands of local governments.
Senate Bill 1332, introduced by Sen. Dave Marsden, D-Fairfax, cleared the House floor Thursday, bringing it one step closer to final approval. The bill proposes increasing the maximum initial towing and hookup fee for passenger vehicles from $150 to $210 — a rate that a recent state study deemed “reasonable.”
At the same time, the bill ensures that localities retain the authority to regulate towing rates and fees, a point Marsden emphasized during a recent Senate Commerce and Labor Committee hearing.
“This legislation preserves all consumer protections and all local regulatory authority,” Marsden said.
The proposal originally sought to shift oversight of trespass towing fees from local governments to the State Corporation Commission (SCC), but lawmakers opted to keep rate-setting power at the local level.
The measure also extends a provision allowing towing operators to charge a fuel surcharge fee in areas where local governments have set regulations. If localities have not reviewed their towing fee structures by Dec. 31, the legislation encourages them to do so.
The SCC’s involvement in the debate stemmed from a 2023 General Assembly directive to study the regulation of towing fees. The commission, through its contractor The Eixenberger Group LLC, surveyed nearly 200 towing companies to gauge cost concerns. The study concluded that the proposed $210 rate was fair based on industry costs.
Marsden reassured lawmakers that the bill doesn’t mandate rate increases but allows localities to adjust fees within a specific range.
“This legislation allows localities to set towing rates using their current process in between the range of $135 and $210, but does not require localities to make any increase. It is simply a local option,” Marsden told the Senate last week.
With the bill now advancing to Gov. Glenn Youngkin for approval, Virginia’s towing industry and local governments await the final verdict. Meanwhile, a companion measure, House Bill 2214, failed to pass in the House, leaving SB 1332 as the remaining path forward for the proposed changes.
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