Personal Property Tax Relief

The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pickup or panel truck having a registered gross weight of less than 7,501 lbs.  

NEW July 1, 2016: The new tax exemption law amended the definition of “pickup or panel truck” in §46.2-100 so that it now includes “every motor vehicle registered for personal use, designed to transport property on its own structure independent of any other vehicle and having a registered gross weight in excess of 7,500 lbs. but not in excess of 10,000 lbs.”. That class of vehicle was not previously included in the statutory definition and thus did not previously qualify for personal property tax relief.

To qualify:  The vehicle must be owned or leased by an individual and NOT used for business purposes.  A vehicle is considered to be used for business purposes if:
  • More than 50% of the mileage for the year is used as a business expense for Federal Income Tax purposes OR reimbursed by an employer.
  • More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax;
  • The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code; or
  • The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual.
Vehicles qualified for tax relief are noted on your tax bill and show a reduction for the portion of the tax the Commonwealth will pay.  For qualified vehicles, your tax bill is reduced by the applicable tax relief percentage for the tax year on the first $20,000 of value.  For qualified vehicles, the County of Warren will be reimbursed by the Commonwealth for the reduction, once you have paid the balance due shown on your bill.  If the qualifying vehicles assessed value is $1,000 or less, your tax has been eliminated and the Commonwealth’s share is 100%.  The percentage of relief is set each year by the Board of Supervisors along with other tax rates for tax billings. 
  
You are required to certify annually to the County of Warren that your vehicle remains qualified to receive the car tax relief.  Therefore, it is important that you review the information sent to you by your locality to be sure that your vehicles are properly qualified.  This information may be included on items such as personal property tax returns, tax bills, high mileage forms, proration forms, or information obtained during vehicle license transfers/ replacements.  If your vehicle is improperly qualified or you are uncertain whether your vehicle would be eligible for car tax relief because it is used part of the time for business purposes, contact the Commissioner of the Revenue’s Office at 540-635-2651.

Contact

  info (@) warrencountyva.net
  540.636.4600
  540.636.6066
  220 N. Commerce Avenue
     Front Royal, VA 22630

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