Tax Administration

Personal Property Tax Relief Act

The County receives a fixed amount each year as reimbursement from the Commonwealth pursuant to §58.1-3524 of the Code of Virginia. This reimbursement is for tangible personal property tax relief (also known as “Car Tax Relief”). The County has opted to allocate its reimbursement amount from the Commonwealth on a per vehicle basis. The reimbursement amount for tax relief on qualifying vehicles provides the following effective tax relief percentages:

CAR TAX RELIEF 2023

Vehicle Value	​Percentage of Tax Relief
​$1000 or less	​100.0%
​$1001 to $20,000	​38%
​$20,001 or more	38% of the tax due on the first $20,000 of assessed value

The tax due on qualifying vehicles will be reduced by the percentage shown above based on the assessed value of the vehicle. The specific amount of car tax relief allocated to your vehicle will be shown on your bill with the notation “Car Tax Relief Amount.” For more information, see the Commonwealth of Virginia page on car tax relief.

 

CAR TAX RELIEF HISTORY

Year  -  Percentage of Tax Relief

2022 - 45%

2021 - 45%

2020 - 45%

2019 - 46%

2018 - 47.5%

2017 - 48.5%

2016 - 50%

2015 - 51%

2014 - 51%

2013 - 52%

2012 - 57%

2011 - 60%

2010 - 64%

Determining Qualifying Vehicles for Personal Property Relief 

In general, a qualifying vehicle (Va. Code 58.1-3523) is determined by the Commissioner of the Revenue (COR) of the county, city or town where the vehicle is garaged. In order to qualify for the tax relief, the motor vehicle must be owned or leased by a natural person or held in private trust and be used for nonbusiness purposes. 

The CORs are responsible for (i) determining which vehicles qualify for personal property tax relief; (ii) determining the value of every qualifying vehicle; and (iii) certifying this information to their respective Treasurer. The COR may rely on vehicle registration information provided by DMV on semi-annual vehicle registrations, reports from lessors, and other information available to them to identify qualifying vehicles.  

 

Vehicles Qualifying for Tax Relief 

A vehicle must meet all three of the requirements below to qualify for tax relief. The vehicle must: 

• Be a passenger car, pickup or panel truck, motorcycle or autocycle; and 
• Be (i) owned by a natural person or (ii) leased by a natural person under a contract requiring such person to pay the tangible personal property tax or (iii) held in a private trust; and
• Be used for nonbusiness purposes. 

NOTE: If a gross weight change is recorded with the Department of Motor Vehicles that may cause a previously unqualified vehicle to become qualified, the vehicle may be considered for qualification for the following tax year. 

• Passenger cars, pickup or panel trucks, motorcycles and autocycles used for nonbusiness purposes qualify for the tax relief provided under the Personal Property Tax Relief Act.  
• Passenger car: a motor vehicle other than a motorcycle designed and used primarily for the transportation of no more than ten persons including the driver.  
• Pickup or panel truck: a motor vehicle designed for the transportation of property and having a registered gross weight under 7,501 pounds or every motor vehicle registered for personal use, designed for the transportation of property on its own structure and having a registered gross weight of more than 7,500 pounds but not more than 10,000 pounds.  
• Motorcycle: a motor vehicle designed to travel on not more than three wheels in contact with the ground, except any vehicle included within the term "farm tractor" or "moped" as defined in Va. Code 46.2-100.  
• Autocycle: a three-wheeled motor vehicle that has a steering wheel and seating that does not require the operator to straddle or sit astride and is manufactured to comply with federal safety requirements for motorcycles. Except as otherwise provided, an autocycle shall not be deemed to be a motorcycle.  
• Privately owned vehicles, leased vehicles, and vehicles held in a private trust described below qualify for the tax reduction.  
• Privately owned vehicles: vehicles owned by natural persons.  
• Leased vehicles qualifying for the tax relief are those vehicles leased by a natural person under a contract which requires such person to pay the tangible personal property tax on the leased vehicle. (Va. Code 58.1-3523)  
• Example of a qualifying leased vehicle: A passenger car, leased by Mary Smith (a natural person), is leased under a five-year agreement. Mary uses the car for nonbusiness purposes. If Mary is required to pay the personal property tax on the car as part of her lease agreement, the car will be a qualifying vehicle and Mary will benefit from the Commonwealth's car tax relief. 
• Vehicles held in a private trust and used for nonbusiness purposes. 

 

Types of Vehicles Which Do Not Qualify 

• Motorhomes do not qualify for tax relief because they are designed primarily for use as living quarters for human beings, as opposed to being designed for transportation purposes. (Va. Code 46.2-100)  
• Farm use vehicles do not qualify for car tax relief because, as determined by the Commissioners of the Revenue Association, farm use is considered to be a business use. 
• Vehicles held in a living trust, in general, will not qualify for tax relief because these vehicles are owned by a trust, not by a natural person. However, whether or not specific vehicles in a living trust qualify for tax relief is determined by each Commissioner of the Revenue, depending on the facts and circumstances, such as the provisions of the relevant trust, surrounding specific vehicles and trust agreements.