Topics covered in this section:

• Definition

• Determining an assessment

• Rates

• PPTRA

Definition

Virginia State Code Section 58.1-3503 defines personal property as automobiles, trucks, manufactured homes, motorcycles, recreational vehicles, boats, trailers, and aircraft.

Determining an Assessment

Personal property assessment methods vary:

Cars/Trucks - We use the N.A.D.A Official Used Car Guide effective as of January 1st of the year of the tax. We use 100% of the retail price to determine the value. If there is no retail price, we use 100% of the MSRP or the cost. 

Motorcycles - We use N.A.D.A also for motorcycles. We use 100% of the retail price to determine the value.

Manufactured homes - We tie in manufactured homes with the real estate that it sits on so that it is assessed consistently with our last reassessment. Numerous variables, such as year, make, size, and condition are entered  into the computer. From this information, a value is determined.

Boats/Campers/Trailers -  Assessed values are based on taking 50% of the original cost. If there is no cost given, then a statutory assessment is used.

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Rates

The 2004 tax rate for cars, trucks, and motorcycles is  $1.85 per $100 of assessed value.  This reflects no effective change from last year's rate. The assessed value for these vehicles are based on 100% of  N.A.D.A retail price. 

The 2004 tax rate for boats, campers, and trailers is $1.85 per $100 of assessed value. This reflects no effective change from last year's rate.  Assessed values are based on taking 50% of the original cost. If there is no cost given, then a statutory assessment is used.

The 2004 tax rate for manufactured homes is $.72 per $100 of assessed value. This reflects a $.05 increase  from last year's rate.

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PPTRA

The Personal Property Tax Relief program is a multi year plan for phasing out the personal property tax on privately owned cars, trucks, and motorcycles that have a gross weight of  7500 pounds or less. The tax relief is given on the taxes due for the first $20,000 in assessed value on qualified personal vehicles. No relief is given on any assessment amounts over $20,000. 

• Vehicles eligible for PPTRA:
  All automobiles, trucks, and motorcycles registered with DMV with a gross weight of 7500 pounds or less. These vehicles must be owned or leased by citizens and used predominately for non-business purposes. Leased vehicles are eligible when the lessee is responsible for direct payment of the personal property tax.

• Vehicles not eligible  for PPTRA:
  All vehicles that are used  more than 50% for business purposes. This includes a vehicle's mileage for the year and the depreciation deducted for that vehicle as a business expense. Other vehicles that do not qualify for PPTRA are vehicles with farm use tags.

Percentage of Relief

• 1998 - 12.5%

• 1999 - 27.5%

• 2000 - 47.5%

• 2001 - 70.0%

• 2002 - 70.0% 

• 2003 - 70.0%

• 2004 - 70.0%

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