Personal Property Tax Relief Act of 1998
The Personal Property Tax Relief Act of 1998 provides tax relief on the first $20,000 of the assessed value for qualified passenger cars, motorcycles, autocycle, and pickup or panel trucks having a registered gross weight of less than 10,000 pounds.
Qualification Requirements
To qualify, a vehicle must:
- Be owned by an individual or leased by an individual under a contract requiring the individuals to pay the personal property tax or held in a private trust for non-business purposes; and
- be used 50% or less for business purposes.
Motor homes, trailers and farm use vehicles do not qualify for tax relief.
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 Car Tax Relief:
- Is more than 50% of the mileage for the year used 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?
For qualifying vehicles valued at $1,000 or less, your obligation to pay this tax has been eliminated.
Contact the Commissioner of the Revenue or
Treasurer for assistance.