Personal Property Tax Relief

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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 had been in place from 1998 to 2005. The 2005 law provided a limited 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 which is determined annually. It applies 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.

What is the Personal Property Tax Relief?  The Personal Property Tax Relief (PPTR) provides tax relief for any passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of less than 7,501 pounds or pick-up and panel trucks where the registered gross weight exceeds 7,500 but is not in excess of 10,000 pounds and it is registered for personal use and designed to transport property on its own structure independent of any other vehicle

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.

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 panel or pick-up truck does the registered gross weight exceed 7,500  but not in excess of 10,000 pounds and it is not registered for personal use and designed to transport property on its own structure independent of any other vehicle

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

Will a truck qualify after the vehicle registered gross weight or registration has been changed?  A panel or pick-up truck with a gross weight of 7,500 pounds or less, not used in a business, qualifies for the tax relief. In addition, If the vehicle is a panel or pick-up truck has a the registered gross weight exceeds 7,500 but is not in excess of 10,000 pounds and it is registered for personal use and designed to transport property on its own structure independent of any other vehicle it may qualify.

Should a person declare that the gross weight of his/her truck is incorrect and goes to the DMV and has it changed to meet the criteria, the following tax year that truck would qualify for the relief.