Personal Property Tax Relief (PPTR)

​​The Virginia General Assembly passed the Personal Property Tax Relief Act (PPTRA) in 1998. Code of Virginia Section 58.1-3523 et. seq. provides relief of personal property taxes.
 
Three requirements must be met to qualify for tax relief. The vehicle must be: 
 
  • a passenger car, pickup or panel truck, or a motorcycle
  • owned by a natural person or leased by a natural person under a contract requiring such person to pay the personal property tax
  • used for nonbusiness purposes

Definitions of Motor Vehicles Qualifying for Tax Relief:

  • PASSENGER CAR - Every motor vehicle other than a motorcycle designed and used primarily for the transportation of no more than ten persons, including the driver.
  • PICKUP OR PANEL TRUCK - ​Every motor vehicle designed for the transportation of property and having a registered gross weight under 7,501 pounds.
  • MOTORCYCLE -​ every motor vehicle designed to travel on not more than three wheels in contact with the ground, except any vehicle included with the term "farm tractor" or "moped" as defined in Code of Virginia Section 46.2-100.

A vehicle is considered used for business purposes 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
  • More than 50% of the depreciation associated with the vehicle is deducted as a business expense for federal income tax purposes
  • The cost of the vehicle is expensed pursuant to § 179 of the Internal Revenue Code
    OR
  • The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual

Since 2006, the Commonwealth has and continues to appropriate $950 million each tax year to reimburse localities statewide. Virginia Beach City Council sets the tax relief each year.  Rates since 2006 are as follows:

  • 2006 - 67.3%
  • 2007 - 63.8% 
  • 2008 - 60.3%
  • 2009 - 57.5%
  • 2010 - 70%
  • 2011 - 70%
  • 2012 - 66%
  • 2013 - 59%
  • 2014 - 59%
  • 2015 - 55%
  • 2016 - 52.5%
 
Tax bills are reduced for qualified vehicles by the applicable tax relief percentage for the tax year on the first $20,000 of value. If a qualifying vehicle's assessed value is $1,000 or less, the tax is eliminated and the Commonwealth's share is 100%. Tax relief is calculated using the City of Virginia Beach effective tax rate in effect on August 1, 1997.
 
The City of Virginia Beach is required to certify and verify a vehicle remains qualified to receive car tax relief annually​. It is important that information detailed on tax bills and personal property tax returns is thoroughly reviewed to ensure vehicles are properly qualified. If a vehicle is im​properly qualified or there is uncertainty whether a vehicle is eligible for car tax relief because of its part-time use for business purposes, contact the Personal Property Taxpayers Division of the Commissioner of the Revenue. A personal property tax payment submitted to the City of Virginia Beach is considered an acknowledgement that the vehicle has been qualified correctly.
 
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