Commissioner of the Revenue Offices
home     government     calendars     what's new     education     doing business     visitors
 
           

Tax Relief Act

PERSONAL PROPERTY TAX RELIEF

During the 2005 session the Virginia General Assembly passed legislation that was signed into law creating a plan that allows the County to reduce the personal property taxes paid by individuals on certain motor vehicles. The current law differs from that which was has been in place since 1998. The new law provides a limited the amount of relief.

The tax relief does not eliminate the personal property tax. It does, however, provide for a partial reduction in the local Personal Property Tax. The reduction percentage is a function of the growth and value of the vehicle tax base and will be determined annually .It will apply to the first $20,000 of assessed value on qualifying vehicles. Taxpayers who own qualifying vehicles with a value of $1,000 or less are not taxed. Taxes on the value in excess of $20,000 are paid to the County and not subject to the reduction. The reduction will appear on the County's tax bill.

Q. What is the Personal Property Tax Relief?

A. The Personal Property Tax Relief (PPTR) amendment of 2005 provides tax relief for any passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of less than 7,501 pounds. To qualify, a vehicle must be owned by an individual or leased by an individual under a contract requiring that individual to pay the personal property tax
AND
be used 50% or less for business purposes.
Motor homes, trailers and farm use vehicles do not qualify for tax relief.

Q. Does my vehicle qualify? If you can answer YES to any of the following questions, your motor vehicle will NOT qualify:

  • Is more than 50% of the mileage for the year used as a business expense for Federal Income Tax purposes or reimbursed by an employer?
  • Is more than 50% of the depreciation associated with the vehicle deducted as a business expense for Federal Income Tax purposes?
  • Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
  • Is the vehicle leased by an individual and the leasing company pays the tax without reimbursement from the individual?
  • Is the vehicle farm use?
  • Is the vehicle a motor home?
  • If the vehicle is a truck, does the registered gross weight exceed 7,500 pounds?

Q. Will a vehicle qualify if it is in a Living Trust?

A. In general, vehicles held in a living trust will qualify for tax relief if the vehicle is held in a private trust for non-business purposes by an individual beneficiary.

Q. Will a vehicle qualify after the vehicle registered gross weight has been changed?

A. A truck with a gross weight of 7,500 pounds or less, not used in a business, qualifies for the PPTR exemption. Should a person declare that the gross weight of his/her truck is incorrect and goes to the DMV and has it changed to 7,500 pounds or less, the following year that truck would qualify for PPTR.

Date Last Modified: 03/08/2007

 
 


Search :
Copyright 2001 - Fauquier County. All rights reserved.