Tax Relief (PPTRA)

The Personal Property Tax Relief Act of 1998 (PPTRA) provides tax relief for vehicles locally registered within the Commonwealth of Virginia. In order to qualify for tax relief, your vehicle must be:

  • A passenger car, motorcycle, pickup truck or panel truck that has a registered gross weight of less than 7,501 lbs.
  • Owned by an individual, or leased by an individual under a contract requiring the individual to pay the personal property tax.
  • Used no more than 50% of the time for business purposes.

Note – Motor homes, trailers, boats, and farm use vehicles do not qualify for tax relief.

Definition of Business Purposes

If you can answer yes to any of the criteria listed below, your vehicle is considered predominantly used for business purposes and does not qualify for Personal Property Tax Relief. Therefore taxpayers are responsible for the full tax payment.

  • More than 50 percent of the mileage for the year is claimed as a business expense for Federal Income Tax purposes OR is 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.
  • The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual.
2014 Vehicle Personal Property Tax formulas

Qualifying Conventional Fuel Vehicles will receive:

  • A 100 percent tax relief on the first $3,000 of the vehicle’s value
  • A 29 percent tax relief on the next $17,000 of the vehicle’s value, from $3,001-$20,000
  • No tax exemption for the portion of a vehicle’s assessed value over $20,000

Qualifying Clean-fuel Vehicles will receive:

  • A 100 percent tax relief on the first $3,000 of the vehicle’s value
  • A 50 percent tax relief on the next $17,000 of the vehicle’s value, from $3,001-$20,000
  • No tax exemption for the portion of a vehicle’s assessed value over $20,000

Qualifying Vehicles equipped and/or modified to transport physically disabled individuals will receive:

  • A 100 percent tax relief on the first $3,000 of the vehicle’s value
  • A 50 percent tax relief on the next $17,000 of the vehicle’s value, from $3,001-$20,000
  • No tax exemption for the portion of a vehicle’s assessed value over $20,000
Tax Exemptions

All vehicles normally garaged or regularly parked overnight in Arlington must be registered with the Commissioner of Revenue’s Office and display an Arlington County decal. However, you may qualify for one of the following vehicle personal property tax exemptions:

  • Military exemption – if you are an active-duty member of the United States military and you have a legal residence outside of Arlington County, you and/or your spouse, may be exempt from Arlington County personal property taxes.
  • Student exemption – if you are a full time student with a vehicle registered in a state that has personal property taxes, you may be exempt from Arlington County personal property taxes.
  • Government exemption – Any motor vehicle owned by the State or any political subdivision or by the United States government may be exempt from Arlington County personal property taxes.
  • Diplomat exemption – If you are a foreign diplomat and your vehicle is registered with the United States Department of State, you may be exempt from Arlington County personal property taxes.

Note – if your vehicle is leased, you do not quality for personal property tax exemption.

For more information about personal property tax relief, or to find out if you qualify for an exemption, email the Commissioner of Revenue’s Office or call 703-228-3135.