Personal Property Tax Relief

The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pickup 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. A vehicle is considered to be 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;
    • 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.
Vehicles qualified for tax relief are noted on your tax bill and show a reduction for the portion of the tax the Commonwealth will pay. For qualified vehicles; your tax bill is reduced by the applicable tax relief percentage for the tax year on the first $20,000 NADA value ($8000 assessed value) of value. If your qualifying vehicle's assessed value is $1,000 NADA Value ($400 assessed value) or less, your tax has been eliminated and the Commonwealth's share is 100%.

You are required to certify to Stafford County that your vehicle qualifies to receive car tax relief. Therefore, it is important that you file with the office of the Commissioner of the Revenue when you purchase a vehicle. You should also notify the office upon any change in use.

It is important to carefully read and respond to any information you receive regarding your vehicle. This information may be included on items such as personal property tax filings, decal applications or tax bills.

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 us at (540) 658-4132.