Personal property tax relief is provided for any passenger car, motorcycle, or pickup or panel truck having a registered gross weight with DMV of 10,000 pounds or less on January 1. Qualifying vehicles must be owned or leased by an individual and be used 50% or less for business purposes. A vehicle is considered to be used for business purposes and is ineligible for personal property tax relief if:
More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax purposes
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
The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code
The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual
Qualification for tax relief is reflected on your vehicle personal property tax bill as a reduction in the amount due attributable to the portion of the tax that the Commonwealth will pay. For qualified vehicles, the bill is reduced by that year’s tax relief percentage but only on the first $20,000 of value. No relief for the portion of a qualifying vehicle’s value over $20,000 is provided. Relief is provided at 100% for vehicles assessed at $1,000 or less, resulting in no tax due.
Reviewing Personal Property Tax Accounts
It is important to review your vehicle personal property tax account information online to ensure 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 Loudoun County Commissioner of the Revenue at 703-777-0260.