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To help vehicle owners, the Fairfax County Board of Supervisors approved 15% tax relief for personal property taxes as part of their FY 2023 budget markup. Here are some frequently asked questions and answers:
Why has the value of my vehicle increased?
The COVID-19 pandemic has impacted worldwide supply chains and manufacturing of technological components. As a result, automobile manufacturers are producing new inventory at a lower rate, and fewer people are selling their old vehicles. The reduced supply combined with high consumer demand have caused vehicle values to soar.
How is my vehicle assessment determined?
Many classifications of vehicles in Fairfax County have historically been assessed at 100% of the clean trade-in value stated in the National Automobile Dealers Association (NADA) pricing guide published by J.D. Power as of January 1 each year, in accordance with Virginia Code Section 58.1-3503(A).
What are some examples of increased values?
This steep increase in prices can be seen in some of the most popular car models on the road. For example, a 2020 Honda CR-V rose by 33.1% from $24,925 last year to $33,175 this year, according to J.D. Power. A 2018 Toyota Corolla jumped 43% in value to $21,600 whereas a 2016 Hyundai Tucson Utility SUV surged in value by 34.9% to more than $16,600.
How will the 2022 tax reduction be calculated?
Vehicles will be assessed at only 85% of their assessed market value rather than the normal 100%. This will result in a reduction in the assessed vehicle values and vehicle tax bills and provide relief to taxpayers and mitigate the otherwise unprecedented projected increases in vehicle taxes.
Is this reduction just for this year?
Yes, the 15% reduction will only be for Tax Year 2022 (Fiscal Year 2023) beginning January 1, 2022 and ending December 31, 2022.
Will I see the reduction on my tax bill?
The 15% reduction will automatically be incorporated into personal property tax bills. Because this relief will already be applied, taxpayers won’t see a separate line on their bill that shows the reduction.
What is the car tax relief I see on my bill?
The car tax relief shown on the bill refers to the Personal Property Tax Relief Act of 1998 (PPTRA). Under Virginia law, the Commonwealth of Virginia subsidizes a percentage of the taxes on the first $20,000 of assessed value for vehicles coded as personal use. Vehicles qualified for this subsidy are noted on the tax bill and show a reduction for the portion of the tax the Commonwealth will pay.
Can I apply for additional vehicle tax relief if I’m a senior or person with a disability?
Yes, in addition to the approved 15% assessment reduction, seniors and people with disabilities may also apply for additional relief. To qualify, residents must meet certain income and net worth eligibility criteria. For more information, please refer to our Tax Relief for Seniors and People with Disabilities page.
Can I appeal this assessment?
Yes, vehicle owners may appeal their car’s assessment if it has high mileage, body damage or serious mechanical defects as of Jan 1. Learn more about how to file an appeal. While vehicle owners wait for the results of an appeal, they should still pay their tax bill by the Oct. 5 due date to avoid penalties and interest charges. If your assessment is changed because of an appeal, you will receive a tax refund based on the corrected assessment.