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The Personal Property Tax Relief Act of 1998 provides tax relief for passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of less than 7,501 pounds. To qualify, a vehicle must:
Motor homes, trailers, and farm use vehicles do not qualify for tax relief.
If you can answer yes to any of the following questions, your motor vehicle is considered by State Law to have a business usage and does not qualify for Car Tax Relief.
The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pick up or panel truck having a registered gross weight of less than 7,501 pounds. The vehicle must be owned or leased by an individual and NOT used for business purposes.
Vehicles qualified for tax relief are noted on your tax bill and show a reduction of the portion of the tax the Commonwealth will pay. For qualified vehicles, your tax bill is reduced by 53% (2016% of tax relief) on the first $20,000 of value. 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's effective tax rates that were in effect on August 1, 1997.
Since the City adopted "Filing by Exception" effective January 1, 2006, residents of Chesapeake will be required to register their motor vehicles with the Commissioner of the Revenue only once. Only persons with new information to report or with changes will be required to file. Therefore, it is important that you review your personal property tax bills to be sure that your vehicles are properly qualified. 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 Commissioner of the Revenue's Office. When you pay your taxes on qualified vehicles, you are certifying to the City that your vehicle has been qualified correctly.
The Commissioner of the Revenue will determine if your vehicle qualifies.
A qualifying vehicle is defined as any passenger car, pickup, panel truck, or motorcycle used less than 50% for non-business purposes. The Commissioner of the Revenue makes the determination according to state guidelines.
If the vehicle is for personal use and the leasing company does not pay the taxes without reimbursement from you.
Yes, if it is privately owned and for personal use. Trucks must also have a gross weight under 7,501 pounds to qualify.
The Personal Property Tax Relief Act of 1998 was originally supposed to take five (5) years to phase in. However, with current budget restraints, the car tax credit will take longer to phase in. It is the General Assembly's responsibility to determine what the percent of credit will be each year.
Yes. If you pay late, a penalty will be assessed on the gross tax amount due. Interest will accrue at the annual rate of 10% until paid in full.
As part of the Compliance Program, Commissioners of the Revenue, Treasurers, and other local officials having assessing or collection responsibilities shall implement provisions for certification by the vehicle owners as to vehicle use for business purposes. The certification is required for any vehicle with a value in excess of $1,000.
Beginning January 1, 2003, vehicle owners are required to certify the use of the vehicle to be either personal or business. The certification will be part of each application for initial and renewal vehicle registration at the DMV. Certification information collected by DMV shall be made available to Commissioners of the Revenue and other local assessing officials for use in discharging their responsibilities for qualifying vehicles for relief under the Personal Property Tax Relief Act of 1998.