Tax Relief (PPTRA)

The Personal Property Tax Relief Act of 1998 (PPTRA) provides tax relief for vehicles locally registered within the Commonwealth of Virginia. In order to qualify for tax relief, your vehicle must be:

  • A passenger car, motorcycle, pickup truck or panel truck that has a registered gross weight of less than 7,501 lbs. Effective tax year 2016, pickup trucks registered for personal use and weighing 7,501 pounds but not in excess of 10,000 pounds may qualify for tax relief.
  • Owned by an individual, or leased by an individual under a contract requiring the individual to pay the personal property tax.
  • Used no more than 50% of the time for business purposes.

Note – Motor homes, trailers, boats, and farm use vehicles do not qualify for tax relief.

Definition of Business Purposes

If you can answer yes to any of the criteria listed below, your vehicle is considered predominantly used for business purposes and does not qualify for Personal Property Tax Relief. Therefore taxpayers are responsible for the full tax payment.

  • More than 50 percent of the mileage for the year is claimed as a business expense for Federal Income Tax purposes OR is 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.
  • The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual.

Qualifying Conventional Fuel Vehicles will receive:

  • A 100 percent tax relief on the first $3,000 of the vehicle’s value
  • A 28 percent tax relief on the next $17,000 of the vehicle’s value, from $3,001-$20,000
  • No tax exemption for the portion of a vehicle’s assessed value over $20,000

2021 Vehicle Personal Property Tax Formulas

Qualifying Clean-fuel Vehicles (see if your vehicle qualifies)will receive:

  • A 100 percent tax relief on the first $3,000 of the vehicle’s value
  • A 50 percent tax relief on the next $17,000 of the vehicle’s value, from $3,001-$20,000
  • No tax exemption for the portion of a vehicle’s assessed value over $20,000

Qualifying Vehicles equipped and/or modified to transport physically disabled individuals will receive:

  • A 100 percent tax relief on the first $3,000 of the vehicle’s value
  • A 50 percent tax relief on the next $17,000 of the vehicle’s value, from $3,001-$20,000
  • No tax exemption for the portion of a vehicle’s assessed value over $20,000

 

Qualifying Vehicles leased by an active duty military member and/or his or her spouse will receive:

  • A 100 percent tax relief on the first $20,000 of the vehicle’s value
  • No tax exemption for the portion of a vehicle’s assessed value over $20,000

*The leased vehicle(s) must meet the following criteria in order to be considered qualified:

  • The lease must be in the name of the active duty servicemember and/or his or her spouse.
  • Neither party applying for the tax relief can be a Virginia resident and must be in Virginia due to military orders.
  • The lease document must require the lessee to pay the leasing company for any tax assessed against the vehicle.