The Commissioner of Revenue (COR) is charged with providing what are “fair market values” on vehicle personal property by using “values found in recognized vehicle pricing guides”. The COR cannot take any other action under the law in determining vehicle values.
The Arlington County Board establishes the personal property tax rate on motor vehicles, trailers, semitrailers, and boats which are garaged in Arlington County as of January 1 each year annually. Below is the statement from the Arlington County Board regarding the Personal Property Tax assessment ratio and elimination of the Motor Vehicle License Fee, adopted in April 2022 for Fiscal Year 2023.
National macroeconomic factors, including supply chain issues and pent-up demand, have led to unprecedented increases in vehicle values. These vehicle values are the basis for the assessments of taxpayers’ vehicles and thus the basis for personal property tax paid for their vehicles. Many vehicle assessments are increasing by double-digit percentages from CY 2021 to CY 2022.
To provide tax relief to Arlington taxpayers, the Board has taken two actions:
1.Applying an 88% assessment ratio so that vehicle personal property tax bills will be based on 88% of a vehicle’s value in CY 2022, offsetting much of the increase that taxpayers would have experienced if taxes were applied the full value of their vehicles.
2. Eliminating the regressive $33 Motor Vehicle License Fee that was charged to ever vehicle owner in Arlington.
While the tax relief will vary across different vehicle types, these two actions will ensure lower tax bills for Arlington vehicle owners.