What is Personal Property Tax Relief?

• The Personal Property Tax Relief Act (PPTRA) of 1998 provides tax relief for passenger car, motorcycle or pickup or panel truck with a registered gross weight of less than 7,501 pounds.
• If a qualified vehicle's assessed value is $1,000 or less, the Commonwealth's share of the tax is 100%.
• For qualified vehicles, the tax bill is reduced by the applicable tax relief percentage for the tax year on the first $20,000 of assessed value.

Year	Tax Relief Percentage
1998	12.5%
1999	27.5%
2000	47.5%
2001	70%
2002	70%
2003	70%

Vehicles qualified for tax relief are noted on the tax bill and show a reduction for the portion of the tax the Commonwealth will pay. The County will be reimbursed by the Commonwealth for the amount of the reduction once the taxpayer has paid the balance due shown on the bill.

Taxpayers are required to certify annually to the County that their vehicle is qualified to receive car tax relief. It is important to review the information sent by the County to ensure that the vehicles are property qualified. Certification to the County of the tax relief status of a vehicle is made either by completing the personal property tax return, decal application or by payment of the tax bill.

Any passenger car, motorcycle, pickup or panel truck with a registered gross weight of less than 7,501 pounds.

The vehicle must be owned or leased by an individual and NOT used for business purposes.

Leased vehicles for personal (non-business) use qualify when the lessee is responsible for payment of the personal property tax by the terms of the lease agreement.

Any passenger car, motorcycle, pickup or panel truck with a registered gross weight of more than 7,501 pounds.

The vehicle must be owned or leased by an individual and NOT used for business purposes.

Leased vehicles for personal (non-business) use qualify when the lessee is responsible for payment of the personal property tax by the terms of the lease agreement.

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

• More than 50% of the mileage for the year is used as a business expense for federal income tax purposes OR 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.

Owners of vehicles are required to certify annually to the County of Montgomery that their vehicles remain qualified to receive car tax relief. Therefore, it is important that they review the information sent to them to be sure that their vehicles are properly qualified. When the owners display the County of Montgomery, Town of Blacksburg or Town of Christiansburg decals and pay their taxes on PPTRA-qualified vehicles, they are certifying to the Commissioner of the Revenue that the vehicle has been qualified correctly.

Information about Personal Property Tax Relief Act is also available on the Commonwealth of Virginia website.