The Personal Property Tax Relief Act (PPTRA) of 1998 provides tax relief on the first $20,000 of assessed value for qualifying vehicles. This program is intended to provide a reduction in taxes based upon a percentage determined annually by the Commonwealth of Virginia.
To qualify, a vehicle must...
Be a passenger car, pickup or panel truck weighing less than 10,000 pounds, or motorcycle; and
Be (i) owned by a natural person or (ii) leased by a natural person under a contract requiring such person to pay the tangible personal property tax or (iii) held in a private trust; and
Be used for non-business purposes
Motor homes, trailers and farm use vehicles do not qualify for the tax relief.
A vehicle does not qualify for PPTRA if...
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; or
More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax; or
The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code; or
The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual