Personal Property Vehicle Tax Relief (PPTRA)
Personal Property 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, Personal Property Tax Relief, was implemented by the State as of January 1, 2006. Since 2006, the Commonwealth has and continues to appropriate $950 million each year to reimburse localities statewide.
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.
To qualify for the PPTR, the vehicle must be:
- A passenger car, pickup or panel truck, or a motorcycle
- Owned by a natural person or leased by a natural person under a contract requiring such person to pay the personal property tax
- Used for nonbuisness purposes
A vehicle does not qualify for PPTR and is considered used for business purposes 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 purposes
- 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|
The County of Prince George is required to certify and verify a vehicle remains qualified to receive car tax relief annually. It is important that information detailed on tax bills and personal property tax returns is thoroughly reviewed to ensure vehicles are properly qualified. If a vehicle is improperly qualified or there is uncertainty whether a vehicle is eligible for car tax relief because of its part-time use for business purposes, contact our office. A personal property tax payment submitted to the Count of Prince George is considered an acknowledgement that the vehicle has been qualified correctly.