Please note that the Personal Property Tax Relief Act of 1998 has been repealed. The current tax relief provides relief on the first $20,000 of value 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 Virginia law to have a business use and does NOT qualify for the personal property 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.
If you have any questions regarding vehicle use and qualification, contact the Commissioner's Office at (540) 372-1004.