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 your tax bill and show a reduction for the portion of the tax the Commonwealth will pay. If your qualifying vehicle's assessed value is $1,000 or less, you receive full exemption from the property tax on that vehicle. The tax subsidy is calculated using Fairfax County's effective tax rate in effect for the current tax year. You are required to certify to Fairfax County annually that your vehicle remains qualified to receive the car tax subsidy.
To qualify for the vehicle tax subsidy a vehicle:
Must be owned or leased by an individual
Must NOT be used for business purposes
Must be registered with a gross weight of less than 10,001 pounds
Note: pickups and panel trucks with a gross weight between 7,501 to 10,000 pounds must register with the Virginia DMV as a "pickup." Please note, DMV will continue to use the registration designation of "truck" for business use vehicles. Vehicles with this designation will not qualify for the state vehicle tax subsidy.
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 the vehicle tax subsidy.
- Is the vehicle owned or co-owned by a business?
- Is more than 50% of the mileage for the year claimed 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 for Federal Income Tax purposes?
- Is the cost of the vehicle expensed 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 the individual?