The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pickup or panel truck having a registered gross weight of less than 7,501 pounds. 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:
- The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code
- More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax
- More than 50% of the mileage for the year is used as a business expense for Federal Income Tax purposes reimbursed by an employer
- 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
Qualified Vehicles
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 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 Commissioner’s Office at 540-483-3083. When you pay your taxes on qualified vehicles, you are certifying to the County that your vehicle has been qualified correctly.