The Virginia General Assembly passed the Personal Property Tax Relief Act in 1998 (amended in 2005) which provides for state funded relief, in whole or in part, of local personal property tax assessed on certain personal vehicles registered in the Commonwealth. Personal Property Tax Relief (PPTR) provides relief of a portion of local tax assessed on the first $20,000 of value for qualifying vehicles. For example, if the vehicle is valued at $26,000, relief of a portion of tax assessed on $20,000 will be given but the tax assessed on the remaining $6,000 will be due in full. For vehicles valued at $1,000 or less, PPTR provides for 100% relief of local property tax assessed on qualifying personal vehicles.*
PPTR Eligibility
The Following Vehicles Are Eligible for PPTR
- Vehicles owned or leased by an individual that are predominately used for non-business purposes and have passenger license plates. Vehicles are automobiles, motorcycles, autocycles, pickups and panel trucks registered with Virginia 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 Vehicles Are Not Eligible for PPTR
- If the cost of the vehicle is expensed pursuant to section 179 of the IRS Code
- More than 50% of the depreciation associated with the vehicle is deductible as a business expense
- More than 50% of the vehicle’s mileage for the year is for business purposes
- Farm Use Vehicles
- Motor Homes, Trailers & Boats
- All-Terrain Vehicles, Off Road Motorcycles and Mopeds registered with Virginia DMV
*The Board of Supervisors sets the tax relief each year.