Personal Property Tax Relief Act of 1998
- 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:
- 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; or
- The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual.
- Find more detailed information on business use vs. non-business use.
- Effective January 2017 pickups and panel trucks with a gross weight between 7,501 to 10,000 lbs and designated as personal use will qualify for the state Car Tax subsidy (PPTRA). To qualify, these trucks must register with the Virginia DMV as a "pickup". DMV will continue to use the registration designation of "truck" for business use vehicles of this type which will not qualify for the state Car Tax subsidy.
- 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.
- 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 711. When you pay your taxes on qualified vehicles, you are certifying to Fairfax County that your vehicle has been qualified correctly.
- Remember, you must still pay car taxes by October 5th each year.
Car Tax Information from Virginia