Personal Property Tax Relief Act

Falls Church City Continues to Implement the General Assembly's Changes to the Personal Property (vehicle) Tax Relief Act (PPTRA). The General Assembly of the Commonwealth of Virginia has capped tax relief by the PPTRA at $2.02 million for the City of Falls Church. For 2016, the value of the state subsidy to individual taxpayers in the City of Falls Church is 45.41% of the qualifying tax levy. This is the effective amount the State is paying the City on taxpayer's behalf. Taxable vehicle owners are required to pay the difference directly to the City of Falls Church. PPTRA only applies to personal use vehicles.

There is NO tax on vehicles with an assessed value of $1,500 or less. All qualified vehicles with an assessed value between $1,501 and $20,000 will receive tax relief of 45.41%. Any assessed portion over the first $20,000 of a vehicle's value will not receive relief. The 2016 personal property tax rate is 5%.
 

Requirements


  • The vehicle must be owned or leased by an individual under a contract requiring the individual to pay the personal property tax.
  • The vehicle must be used 50% or less for business purposes.

Non-Qualifying Events


You do not qualify for car tax relief if:
  • More than 50% of the mileage for the year is used 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 purposes.
  • 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.
Motor homes, trailers, boats, and farm use vehicles do not qualify for tax relief.