Car Tax Reduction

The Personal Property Tax Relief Act provides reduced taxes to owners of qualified vehicles billed for 2006 and subsequent tax years. The plan includes the following:

• Tax reduction will apply to the first $20,000 value of a qualifying vehicle
• A qualifying vehicle is defined as any passenger car, pickup, panel truck or motorcycle used for non-business purposes
• For qualifying vehicles, your personal property taxes will be affected as outlined below

In the 2005 Appropriations Act, the General Assembly capped statewide Personal Property Tax Relief (PPTR) reimbursement at $950,000,000 for tax year 2006 and beyond. For tax year 2006 and subsequent years, Chesterfield County’s PPTR reimbursement has been fixed at approximately $41,000,000.

Chesterfield County has allocated this PPTR reimbursement for tax year 2006 and subsequent years to provide tax relief as follows:

• Eliminated personal property tax on each qualifying vehicle with an assessed value of $1,000 or less
• Reduced personal property tax on qualifying vehicles on the first $20,000 of assessed value by the respective tax relief credit percentages by tax year:
  • 2022 - 55%
  • 2021 - 46%
  • 2020 - 49%
  • 2019 - 51%
  • 2018 - 54%
  • 2017 - 55%
  • 2016 - 56%
  • 2015 - 58%
  • 2014 - 60%
  • 2013 - 62%