Personal Property Vehicle Tax Relief

The 1998 Virginia General Assembly passed legislation to phase out the payment of personal property taxes by individuals on certain motor vehicles. The State's "No Car Tax Program" was eliminated as of September 1, 2006. A new program was implemented by the State as of January 1, 2006.

The personal property tax relief program is no longer intended to eliminate the personal property tax, but rather provide a reduction to the taxpayer. Your tax bill will be reduced by a percentage which will be determined annually. The relief now represents an annual cap from the Commonwealth of Virginia.

The increase in the 2006 Personal Property tax bills were due to the changes implemented by the General Assembly of Virginia. Tax relief on motor vehicles in Prince George County for the 2006 tax year was 61% of the first $20,000 in value on qualifying vehicles instead of the 70% relief taxpayers have received in previous years. As a result of this new program the state relief will shrink over time as Prince George County continues to grow and add new
vehicles that are eligible for the relief.

A vehicle does not qualify for PPTRA 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.  Owners of qualified personal vehicles with an assessed value of $1,000 or less receive a 100% exemption of the taxes due on that vehicle.

Percentage of Relief
2005  70%
2006 61%
2007    59%
2008 55%
2009 61%
2010 56%
2011 51%
2012 48%
2013 46%
2014 42%
2015 44%
2016 43.9%
2017 42%
2018 41.5%
2019 40%