Property Tax Relief Act

Qualifying Vehicles

The Personal Property Tax Relief Act of 1998 provides tax relief for passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of less than 7,501 pounds.

To qualify, a vehicle must:

• Be owned by an individual or leased by an individual under a contract requiring the individual to pay the personal property tax
• Be used less than 50% for business purposes
• Not be a motor home, trailer, boat, or farm-use vehicle, as these do not qualify for tax relief

Does Your Vehicle Qualify?

If you can answer yes to any of the following questions your motor vehicle is considered by state law to have a business use and does not qualify for Car Tax Relief.

• Is more than 50% of the mileage for the year used as a business expense for federal income tax purposes or reimbursed by an employer?
• Is more than 50% of the depreciation associated with the vehicle deducted as a business expense pursuant to section 179 of the Internal Revenue Service Code?
• Is the vehicle leased by an individual and the leasing company pays the tax without reimbursement from individual?
• Is the State of Virginia currently paying a portion of your personal property taxes on qualifying vehicles?

More Information

For more information on the Property Tax Relief Act, contact the Commissioner of Revenue's Office at 434-799-5145.