Treasurer's Office

Car Tax Reduction

IMPORTANT NOTICE REGARDING PERSONAL PROPERTY TAX RELIEF FOR 2005 AND PREVIOUS TAX YEARS

In accordance with State law, as of September 1, 2006, the tax relief reduction previously granted on qualified vehicles was removed on all unpaid 2005 and previous tax year personal property bills. TAX YEAR 2006 and subsequent years PERSONAL PROPERTY TAX BILLS ARE NOT AFFECTED (SEE BELOW). Accordingly, taxpayers with unpaid 2005 and previous tax year personal property tax bills now owe 100% of the tax bill. Revised personal property tax bills have been printed and mailed to those taxpayers affected by this State law change.
 
CAR TAX REDUCTION FOR 2006 AND SUBSEQUENT TAX YEARS

The Personal Property Tax Relief Act provides reduced taxes to owners of qualified vehicles billed for 2006 and subsequent tax years.

The plan includes the following:

• Tax reduction will apply to the first $20,000 value of a qualifying vehicle
• A qualifying vehicle is defined as any passenger car, pickup, panel truck, or motorcycle used for non-business purposes
• For qualifying vehicles, your personal property taxes will be affected as follows:
• In the 2005 Appropriations Act, the General Assembly capped statewide Personal Property Tax Relief (PPTR) reimbursement at $950,000,000 for tax year 2006 and beyond. For tax year 2006 and subsequent years, Chesterfield County’s PPTR reimbursement has been fixed at approximately $41,000,000. Chesterfield County has allocated this PPTR reimbursement for tax year 2006 and subsequent years to provide tax relief as follows:
• eliminated personal property tax on each qualifying vehicle with an assessed value of $1,000 or less
• reduced personal property tax on qualifying vehicles on the first $20,000 of assessed value by the respective tax relief credit percentages by tax year:

2008 Tax Year – 60%
2007 Tax Year – 61%
2006 Tax Year – 61%