Personal Property Tax Relief Act
The Personal Property Tax Relief Act of 1998 provides tax relief for passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of 7,500 pounds or less. To qualify, a vehicle must:
- Be owned by an individual or leased by an individual under a contract which requires the individual to pay the personal property tax
AND
- Be used 50% or less for business purposes.*
*If you can answer YES to any of the following questions, your motor vehicle is
considered by State Law to have a business use and does NOT qualify for the Car
Tax Relief:
- 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?
Motor homes, trailers, and farm use vehicles do not qualify.
IMPORTANT: To qualify for car tax relief, you are required annually to certify your vehicle use. It is important to review the letter which is sent to you by the City of Fredericksburg Commissioner's Office in January to insure that all vehicle information is correct and that your vehicle(s) are property qualified. If you have any questions regarding vehicle use and qualification, contact the Commissioner's Office at (540) 372-1004.
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