Personal Property Tax Relief, Classifications and Exemptions
Reviewing Personal Property Tax Accounts
It is important to review your vehicle personal property tax account information to ensure that your vehicles are properly qualified. 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 Chesterfield County Commissioner of the Revenue at 804-748-1281.
Qualify for Personal Property Tax Relief
Per the Code of Virginia §58.1-3524, personal property tax relief (PPTR) gives tax relief on the taxes due for the first $20,000 in assessed value on qualified personal vehicles.
No relief is given on any assessment amounts over $20,000. For example, if the vehicle assessment is $26,000, tax relief will be given on the tax due on the first $20,000 and full tax will be due on the remaining $6,000.
PPTR Vehicle Eligibility
The following vehicle are eligible for personal property tax relief:
- Vehicles owned or leased by an individual that are predominately used for non-business purposes and have passenger license plates
- Vehicles are automobiles, motorcycles, pickups and panel trucks registered with DMV with a gross weight of 10,000 pounds or less
- Leased vehicles are eligible when the lessee is responsible for direct payment of the personal property tax by the terms of the lease agreement
The following vehicle are not eligible for personal property tax relief:
- Pickup or panel trucks with registered gross weight greater than 10,000 pounds
- Owned or leased in the name of the business
- More than 50% of the mileage for the year is for business purposes and is deducted 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
- If the cost of the vehicle is expended pursuant to section 179 of the IRS Code (which requires 50% or greater business use)
- The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual
Interstate Commerce Motor Carriers
Motor vehicles and trailers with a gross weight of 10,000 pounds or more and are used to transport property for hire by a motor carrier engaged in interstate commerce (interstate motor carriers (IMC)) are taxed at $0.91 per 100.
To qualify for the reduced rate, proof of the Jan. 1 Certificate/Permit from the Federal Highway Administration is required, which will show common carrier or contract carrier with a motor carrier number (MC #), authorization for hire and interstate carrier operation. If certified as of Jan. 1, any newly qualifying vehicles purchased after Jan. 1 would qualify. DMV where vehicle is registered will need to show gross weight of 10,000 pounds or more, H (for hire) beside of vehicle use. Plate type TRH-TH stands for tractor.
If the vehicle is owned by an individual or company that does not qualify as a common or contract carrier, but they are leasing the vehicle to a motor carrier who does qualify, that qualifier must have proof of the Certificate/Permit from the Federal Highway Administration. The lease agreement will be required to show the lease names and the dates of the lease. This lease will need to be provided annually.
For current tax year, use prior years proof of total miles traveled and total miles traveled in Virginia. DMV where vehicle is registered will need to show plate type as apportioned.
Alternative Personal Property Tax Classifications
Motor vehicles owned or leased by a member of one of the following organizations may qualify for an alternative personal property tax rate:
- Auxiliary Fire Department
- Auxiliary Police
- Auxiliary Police Chaplain
- Auxiliary Rescue Squad
- Volunteer Fire Department
- Volunteer Rescue Squad
The member must be in good standing with their organization and must regularly respond to emergency calls or perform other duties for the organization during the entire previous calendar year. The special tax rate and registration fee is only applied to one vehicle per one volunteer member. If the vehicle used is leased, a copy of the lease agreement will be required with the certification form.
By Jan. 31, complete the Volunteer Vehicle Certification Form (PDF) and the Personal Property Tax Classification Volunteer Master List (PDF). It must be signed by an authorized signer (PDF): Auxiliary Liaison, Chief, District Chief, Volunteer Coordinator or Volunteer Squad Leader.
If you replace your vehicle during the year, a new form will need to be completed and submitted to the Commissioner of the Revenue’s office.
Adaptive Equipment Vehicles
Proof of specially equipped and permanently installed adaptive equipment verified by a visual inspection or installment receipt.
Religious Association Vehicles
Per Code of Virginia 58. 1-3617, motor vehicles owned or leased by designated ecclesiastical officer assigned to a specific religious association and is used more than 50% for religious purposes, the vehicle is exempt from personal property tax. Proof required of the connection between the designated ecclesiastical officer and the religious association.
Tax obligations of active duty military person or a non-military spouse are addressed in the Servicemembers' Civil Relief Act.
To request an exemption from personal property tax in Chesterfield County, military personnel must submit a recent leave and earnings statement (LES). If the vehicle is titled in the name of a non-military spouse or jointly titled with a non-military spouse, you must submit a recent leave and earning statement (LES), copy of the marriage certificate, or a copy of the military ID for the servicemember’s spouse, as well as complete the Military Spouses Residency Relief Form (PDF).
Chesterfield County Domicile
If your vehicle is titled to your domicile in Chesterfield County, your tax liability would be to Chesterfield County regardless of where you may be stationed or where your personal property may be garaged during the year.
If legal domicile in the state of Virginia, vehicles titled solely in the name of a non-military spouse or jointly titled with a non-military spouse who is present in the State to be with the service member in compliance with the service member’s military orders will qualify for exemption from local personal property taxation in Chesterfield County if the residence or domicile is the same for both the servicemember and spouse.
If legal domicile is in a state other than Virginia, vehicles titled solely to a military person residing in Chesterfield County because of military orders, or jointly titled with a military spouse residing in Chesterfield County because of military orders, it will qualify for exemption from local personal property taxation in Chesterfield County.
Members of the North Atlantic Treaty Organization (NATO) may request an exemption from personal property tax by providing a copy of a letter verifying diplomatic status from your embassy or foreign mission. The documentation may be emailed to the Commissioner of the Revenue or mailed to Chesterfield Commissioner of the Revenue, P.O. Box 124, Chesterfield, Virginia 23832.
Per the Code of Virginia § 58.1-3668, a veteran with a 100% service-connected, permanent and total disability may apply for a personal property tax exemption on one motor vehicle (passenger car or a pickup or panel truck) registered for personal use which is owned and used primarily by or for a veteran of the Armed Forces of the United States or the Virginia National Guard.
- Any such motor vehicle owned by a married person may qualify if either spouse is rated as 100% disabled.
- This exemption shall be applicable beginning on the date the motor vehicle is acquired or Jan. 1, 2021, whichever is later, and shall not be applicable for any period of time prior to Jan. 1, 2021.
- This exemption shall expire on the date of the disabled veteran’s death and shall not be available for the surviving spouse.
If you feel you meet the criteria and would like to apply, complete your application in the Citizen Portal or by downloading the 100% Disabled Veteran Personal Property Tax Exemption application (PDF).
To appoint someone to represent you during the personal property tax exemption application process, complete the 100% Disabled Veteran Personal Property Tax Exemption Appointment of Representative form (PDF).
For more information about real estate tax exemptions for veterans, view the Real Estate Tax Relief and Exemptions page.