Personal Property Tax
What are personal property taxes?
Answer: Personal property taxes are those taxes
assessed by the Commissioner of the Revenue for vehicles (includes
autos, trucks, motorcycles and utility trailers), recreational
vehicles, boats, aircraft, mobile homes, and leased vehicles.
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What are the personal property tax rates?
Answer: The current tax rates are as follows:
Vehicles - Based upon the National Automobile Dealers Association
(NADA) Blue Book value all automobiles, trucks motorcycles, utility
trailers and leased vehicles are assessed on a prorated basis at
the rate of $4.25 per $100.00.
Recreational Vehicles - Based upon the National Automobile
Dealers Association (NADA) Recreational Appraisal Guide at the rate
of $1.50 per $100.00.
Pleasure Boats - Current tax rate is $0.50 per $100.00.
Business Boats - Current tax rate is $1.50 per $100.00.
Aircraft - Based upon the Aircraft Blue Book at the rate
of $2.40 per $100.00.
Machinery and Tools - Current tax rate is $4.25 per $100.00.
Mobile Homes - Current tax rate is $1.11 per $100.00.
What if I have a question concerning the assessment
(i.e., high mileage, body damage, etc.) of my vehicle?
Answer: All questions regarding the assessment of your vehicle
must be directed to the Commissioner of the Revenue. You may contact
the Office of the Commissioner of Revenue at 664-7884 or visit their
website.
Am I required to pay personal property taxes
if I am active duty military?
Answer: Any person who is active in the military is exempt from
taxation if his/her home of record is outside Virginia pursuant
to The Soldiers' and Sailors' Civil Relief Act of 1940, as amended.
However, the vehicle must be registered in the name of the active
military person only. If the vehicle is jointly owned and the co-owner
is non-military, the vehicle is taxable.
What is business tangible personal property tax?
Answer: Taxes on personal property for a business, trade or profession
assessed by the Commissioner of the Revenue. This includes, but
is not limited to, the following: (1) furniture and fixtures; (2)
equipment; and, (3) machinery and tools. Business personal property
tax returns must be filed with the Commissioner by March 1. For
more information, you may contact the Commissioner's Office at 664-7884
or visit their website.
When are personal property taxes due?
Answer: Personal property taxes and business tangible personal
property taxes are due by June 5. Bills will be mailed to the taxpayer's
last known address. It is the taxpayer's responsibility to advise
the Commissioner of the Revenue of an address change. Failure to
receive a bill does not relieve the taxpayer of the responsibility
for paying taxes on time.
How are penalty and interest calculated on a
delinquent tax bill?
Answer: Pursuant to §58.1-3916 of the Code of Virginia and
§24-6(a) of the Norfolk City Code, penalty for failure to pay
your personal property tax by the due date is 10% or $10.00, whichever
is greater. Such penalty shall be assessed on the first day following
the day such taxes are due. Interest begins to accrue on the first
day of each month following the due date at the rate of 10% per
year.
If I want to pay in person, where do I go?
Answer: Current personal property taxes are paid in our Main Treasurer's
Office, located on the 1st floor of the City Hall Building. All
delinquent personal property taxes are paid in our Delinquent Tax
Office, also located on the 1st floor, directly across from Human
Resources .
What happens if I don't pay my taxes?
Answer: The Treasurer utilizes several methods for collection of
delinquent taxes, including, but not limited to, tax liens, distress
warrants and withholding state vehicle registration renewal with
the Division of Motor Vehicles (See §§58.1-3919, 58.1-3941,
58.1-3952 and §46.2-752(J), Code of Virginia).
What is a DMV Stop?
Answer: In accordance with Virginia State Code §46.2-752(J),
the Treasurer has the authority to withhold state registrations
for vehicles owned or co-owned by you until all delinquent personal
property taxes are paid in full. In addition, an administrative
fee in the amount of $20.00 will be imposed upon you and each owner
to cover the cost of this enforcement action.
Who should I call if I have questions regarding
my delinquent personal property taxes?
Answer: You may call our delinquent tax office at (757) 664-7838.
I recently moved to Norfolk; how do I register
my vehicle?
Answer:
- Notify the Division of Motor Vehicles of your new address;
and,
- Contact the Office of the Commissioner of the Revenue regarding
the requirements of registering your vehicle in Norfolk.
What procedures are followed when I no longer
reside in Norfolk?
Answer: Notify the Division of Motor Vehicles and the Commissioner
of the Revenue in writing of your residence change and the date
you moved from Norfolk. Your tax bill will be adjusted accordingly
and a new bill will be mailed to you.
Who do I notify when I sell or dispose of my vehicle
?
Answer: You must notify the Division of Motor Vehicles and the
Office of the Commissioner of the Revenue.
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What is the Personal Property Tax
Relief Act and does my vehicle qualify for Car Tax Relief ?
Answer: The Personal
Property Tax Relief Act of 1998 provides tax relief for any
passenger car, motorcycle or pickup or panel truck having a
registered gross weight of less than 7,501 pounds. The vehicle
must be owned or leased by an individual and NOT for business
purposes.
If your response is YES to any of the following
questions, your motor vehicle is considered by State Law to have
a business use and does NOT qualify for Car Tax Relief
- Is more than 50% of the mileage for the year 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?
- Is the vehicle leased by an individual and the leasing company
pays the tax without reimbursement from the individual?
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. The City of Norfolk 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%. Tax Relief is calculated using the locality’s
effective tax rate in effect on August 1, 1997.
You are required to
certify annually to the City of Norfolk that your vehicle remains
qualified to receive car tax relief. Therefore, it is important that
you review the information your locality sends to you to be sure
that your vehicles are properly qualified. This information may be
included on items such as personal property tax returns, or tax
bills. 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, please contact the
Office of the Commissioner of the Revenue at (757) 664-7884. When
you pay your taxes on qualified vehicles, you are certifying to the
City of Norfolk that your vehicle has been qualified correctly.
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