Tax Relief / Exemptions

The Virginia Personal Property Tax Relief Act of 1998 provides tax relief for personal use passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of 10,000 pounds or less. Motor homes, trailers and farm use vehicles do not qualify.  A qualifying vehicle cannot be used over 50% for business purposes.  For additional information on this tax relief, citizens may refer to the Personal Property Tax Relief Pamphlet below or find information on the Virginia Department of Motor Vehicles website.

To qualify, a vehicle must:

• Be owned by an individual or leased by an individual under a contract requiring the individual to pay the personal property tax.
• Be used 50% or less for business purposes.

Business Use Questions

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 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 you and the leasing company pays the tax without reimbursement from you?