Personal Property Tax Relief Act (PPTRA)
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. However, in 2016 legislative changes took place to now include pickups that have a gross weight between 7,501 to 10,000 pounds as of January 1, 2017.
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
- Be used less than 50% for business purposes
Motor homes, trailers and farm use vehicles do not qualify for personal property tax relief.
Does Your Vehicle Qualify for Personal Property Tax Relief
If you can answer yes to any of the following questions, your vehicle does not qualify for personal property tax relief and is considered by state law to have a business use.
- Is more than 50% of the vehicle's annual mileage used as a business expense for federal income tax purposes OR reimbursed by an employer?
- Is more than 50% of the depreciation associated with the vehicle deducted as a business expense for federal income tax purposes?
- Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
- If the vehicle is leased by an individual, does the leasing company pay the tax without reimbursement from the individual?