Personal Property Tax Relief Act
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.
Annual Certification of Tax Relief
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. I
f 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.