Virginia Tax Relief

How to Qualify for Personal Property Tax Relief

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. 
• Owners of qualified vehicles with an assessed value of $1,000 or less receive a 100% exemption of the taxes due on that vehicle.

Vehicle Usage Certification Form (PDF)

The Following Vehicles Are Eligible

• Leased vehicles are eligible when the lessee is responsible for direct payment of the personal property tax by the terms of the lease agreement
• 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

The Following Vehicles Are Not Eligible

• Pickup or panel trucks with registered gross weight greater than 10,000 lbs.
• 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

How to Qualify for Tax Relief with a Handicap Vehicle

Proof of specially equipped and permanently installed handicap equipment verified by a visual inspection or installment receipt.

Interstate Commerce Vehicle Qualifications

• Motor vehicles and trailers with a gross weight of 10,000 lbs. or more and are used to transport property for hire by a motor carrier engaged in interstate commerce are taxed at $0.96 per 100.
• To qualify for the reduced rate, proof of the January 1 Certificate/Permit from the Federal Highway Administration is required. This will show common carrier or contract carrier with a MC #, Authorization for Hire & Interstate Carrier Operation. If certified as of January 1, any newly qualifying vehicles purchased after January 1 would qualify.
• DMV will need to show gross weight of 10,000 lbs. or more, H (for hire) beside of vehicle use. Plate type TRH-TH stands for tractor.

Vehicle Doesn't Qualify but Person Leasing Qualifies

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 someone who does qualify, with proof of the Certificate/Permit from the Federal Highway Administration, they can also qualify. 

• Proof of the lease agreement will be required showing the lease names and the dates of the lease. 
• This lease will need to be provided yearly.

For current tax year, use prior years proof

• Proof of total miles traveled, and total miles traveled in Virginia.
• DMV will need to show plate type as apportioned.

How to qualify for a Volunteer Special Tax Rate and Registration Fee

• Code of Virginia §58.1-3506 and County Code 9-57 & 13-51
• Chesterfield County Code  

What Volunteers?

A member of one of the following organizations in good standing, regularly responds to emergency calls or regularly performs other duties for the organization during the ENTIRE previous calendar year.

• Volunteer Fire Department
• Volunteer Rescue Squad
• Auxiliary Police
• Auxiliary Fire Department
• Auxiliary Rescue Squad
• Auxiliary Police Chaplain

File the completed Volunteer Vehicle Certification Form (PDF) by JANUARY 31^st, and have it signed by one of the following District Chief; Volunteer Coordinator, President; Head of Volunteer Squad, or Chief; Auxiliary Liaison.

• 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.
• 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.

Churches and Religious Bodies Exemptions

Code of Virginia 58. 1-3617

If a vehicle is owned or leased by a minister (or similar position regardless of the title) assigned to a specific church and the minister uses the vehicle more than 50% for church purposes, the vehicle is exempt from personal property tax.

• Proof required of the connection between the minister and the church, either by obtaining copies of church documents, letters or website.