Personal Property Tax Relief from the Commonwealth of Virginia
Personal property tax relief is provided for any passenger car, motorcycle, or pickup or panel truck having a registered gross weight of less than 10,000 pounds on January 1. The vehicle must be owned or leased by an individual and be used 50 percent or less for business purposes. A vehicle is considered to be used for business purposes if:
- More than 50 percent of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax
- More than 50 percent 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
As of July 1, 2016, the Virginia General Assembly changed the registration requirements for personal-use trucks with a gross weight between 7501 and 10,000 pounds. These vehicles must be reclassified as pickups and require standard passenger license plates and no longer qualify for truck license plates. The reclassification subjects your vehicle for tax relief. The change does not apply to vehicles registered for business. If your truck is registered for business use you still are not eligible for the tax relief.
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 of value. Dinwiddie County will be reimbursed by the commonwealth for the amount of the reduction once you have paid the balance due shown on your bill. If your qualifying vehicle’s assessed value is $1,000 or less, your tax has been eliminated and the commonwealth’s share is 100 percent. Tax relief is calculated using Dinwiddie County's tax rate in effect on August 1, 1997.
You are required to notify Dinwiddie County that your vehicle remains qualified to receive car tax relief. 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 Dinwiddie County commissioner of the revenue at (804) 469-4500 option 4.