Personal Property Tax Relief Changes

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. As of January 2017 and forward, the gross weight increased to less than 10,001 pounds. To qualify, a vehicle must be owned by an individual or leased by an individual under a contract requiring the individual to pay the personal property tax, and be used less than 50% for business purposes. Motor homes, trailers, and farm use vehicles do not qualify for tax relief.

Tax Relief Reimbursement Cap

Beginning in 2006 the Commonwealth of Virginia capped the total cost of car tax relief reimbursement to localities at $950 million. Each locality’s share of the $950 million is based upon car tax relief reimbursements from the Commonwealth to the locality for tax year 2004. The amount of car tax relief on each qualifying vehicle in Spotsylvania County is based upon total car tax relief dollars received by Spotsylvania County from the Commonwealth divided by the total projected tax on all qualifying vehicles in Spotsylvania County. For the 2023 tax year, the discount given to the taxpayers is 32%. This means that taxpayers will pay 68% on qualifying vehicles.