Personal Property Tax Relief Act of 1998
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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:
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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;
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More than 50% of the depreciation associated with the vehicle is
deducted as a business expense for Federal Income Tax;
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The cost of the vehicle is expensed pursuant to Section 179 of
the Internal Revenue Service Code; or
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The vehicle is leased by an individual and the leasing company
pays the tax without reimbursement from the individual.
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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.
Fairfax County will be reimbursed by the Commonwealth for the amount of
the reduction shown on your bill. If your qualifying vehicle's assessed
value is $1,000 or less, your tax has been eliminated and the
Commonwealth's share is 100%. Tax relief is calculated using Fairfax
County's effective tax rate ($4.57 per $100 of assessed value) in
effect on August 1, 1997.
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You are required to certify annually to Fairfax County that your
vehicle remains qualified to receive car tax relief. Therefore, it
is important that you review the information sent to you by your
locality to be sure that your vehicles are properly qualified. This
information may be included on items such as personal property tax
returns or tax bills. 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 us
at 703-222-8234, TTY 703-222-7594. When you pay your taxes on
qualified vehicles, you are certifying to Fairfax County that your
vehicle has been qualified correctly.
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Remember, you must still pay car taxes by October 5th each year.
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