Personal Property Tax Relief Act "No Car Tax"
In 2005, the General Assembly repealed the Personal Property Tax Relief Act as adopted first in 1998. For the tax year of 2006, the Commonwealth disbursed each tax locality a portion of the allotted $950 million tax relief to be applied to individuals on the 1st $20,000 of value for qualifying vehicles.
In the current tax year, tax relief will only be applied to the first $6,000 of value for qualifying vehicles.
The Following Vehicles Are Eligible for PPTR
- Leased vehicles are eligible when the lessee is responsible for direct payment of the personal property tax by the terms of the lease agreement
- Vehicles owned or leased by an individual that are predominately used for non-business purposes and have passenger license plates. Vehicles are automobiles, motorcycles, pickups, and panel trucks registered with DMV with a gross weight of 10,000 pounds or less
The Following Vehicles Are Not Eligible for PPTR
- More than 50% of the depreciation associated with the vehicle is deductible as a business expense
- More than 50% of the vehicle's mileage for the year is for business purposes
- Vehicles with farm use tags
- Vehicles titled to or with a business
- Motor Homes
Personal cars, motorcycles and pick-up or panel trucks under 7,501 gross pounds qualify for tax relief. Business and farm use vehicles along with motor homes do not qualify for tax relief. Effective 2017 a truck with a gross weight between 7,501 and 10,000 pounds and classified as a pickup, displaying standard passenger license plates and no longer qualifying for truck license plates may receive tax relief. The amount of tax relief is set by the local governing body each year to distribute the state allotted relief among qualifying vehicles.
Previous Tax Rates
Since Pittsylvania County uses a percentage of value, the assessed value shown on your tax bill is not the value the relief is based upon. For qualifying vehicles valued at $1,000 or less (100% value) your obligation to pay this tax has been eliminated.
Using the assessment ratio of 30% of average trade-in to qualify for 100% reimbursement from the state your assessed value as shown on your tax bill would be $300. Tax relief is limited to the 1st $6,000 of the assessed value as shown on your tax bill of any qualifying vehicle.
Business use vehicles do not qualify for tax relief under the current law. If you have a question regarding the eligibility of a vehicle you may contact the Commissioner of the Revenue Office or read Title 58.1- 3523 as adopted by the General Assembly.