Personal Property Tax Relief

Personal Property Tax Relief Act of 1998

The Personal Property Tax Relief Act (PPTRA) of 1998 provides tax relief for certain vehicles registered within the Commonwealth of Virginia. The tax relief applies to passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of less than 7,501 lbs.

To qualify for this tax relief, the vehicle must be owned or leased by an individual and not used for business purposes. A vehicle is considered to be 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.
  • The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code.
  • 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.

If the qualifying vehicle's assessed value is $1,000 or less, your tax has been eliminated and the Commonwealth's share is 100%. The percentage of relief is set each year by the Board of Supervisors along with other tax rates for tax billings.

Vehicle owners are required to certify annually to the County of Warren that their vehicle remains qualified to receive the car tax relief. Therefore, it's important to review the information sent by your locality 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, you should contact the Commissioner of the Revenue's Office at 540-635-2651.