The PPTRA provides tax relief to citizens and their families on a portion of personal property taxes paid on the first $20,000 of value for qualifying vehicles. Personal Property tax on vehicles valued at $1,000 or less has been eliminated and the Commonwealth's Share is 100%. For 2002 the Commonwealth's Share is 70% of the personal property tax bill for qualifying vehicles.
The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pickup or panel truck having a registered gross weight of less than 7,501 pounds. The vehicle must be owned and leased by an individual and not for business purposes. A vehicle is considered to be used for business purposes if:
- More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income 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
- The cost of the vehicle is expended 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
Vehicles qualified for tax relief are noted on your tax bill and show a reduction for the portion of the tax the Commonwealth will pay. For qualified vehicles, your tax bill is reduced by the applicable tax relief percentage for the tax year on the first $20,000 of value. The city of Newport News will be reimbursed by the Commonwealth for the amount of the reduction once you have paid the balance due shown on your bill.
If your qualifying vehicle's assessed value is $1,000 or less, your tax has been eliminated and the Commonwealth's share is 100%. Tax relief is calculated using the city of Newport News effective rate in effect on August 1, 1997.
You are required to certify annually to the city of Newport News that your vehicle remains qualified to receive car tax relief. Therefore, it is important that you review the information sent to you by your locality to be sure that your vehicles are properly qualified. This information may be included on items such as personal property tax returns, decal applications or tax bills.
If your vehicle is improperly qualified or you are uncertain whether your vehicle would be eligible for car tax relief because it is used part of the time for business purposes, contact the Office of the Commissioner of Revenue at 757-926-8657. When you display your city of Newport News decal and pay your taxes on qualified vehicles, you are certifying to the city of Newport News that your vehicle has been qualified correctly.