Virginia Tax Relief
- Review Vehicle Information
- Calculating Tax Relief
- Eligible Vehicles
- Non-Qualifying Vehicles
- Handicap Vehicles
- Common Carriers
- Volunteer Vehicles
- Church Vehicles
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.
How to Qualify for Personal Property Tax Relief
- 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.
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
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 31st, 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
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.