Personal Property Taxes
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NOTICE: COVID Impact on Some Vehicle Values
The COVID-19 pandemic had a significant impact on vehicle values over the year 2020 which has led to lower than expected depreciation, and in some cases, increased values for 2021.
Historically, vehicle values usually depreciate from month to month. Therefore, the value of any vehicle on January 1st when we must make the assessment would usually be lower than the value of that same vehicle the previous January. In early 2020, vehicle values were trending as expected. However, in March 2020, COVID-19 changed the anticipated trends of the automobile industry resulting in increased market values from all major vehicle valuation services between January 2020 & January 2021. Over the summer of 2020, used car prices increased over 10% for the US market as a whole. Several market events beginning as far back as mid-2019 took part in the values established January 2021.
These events include but are not limited to:
- In March of 2020 the Federal Reserve cut interest rates to near 0%. These extremely low interest rates on both new and used vehicles allowed consumers to purchase vehicles sooner than they would have previously, thus increasing the demand for new and used vehicles.
- Many auto manufacturing plants ceased vehicle production and were re-tooled to begin producing ventilators and other personal protective equipment causing a reduction in vehicle inventory.
- Large fleet companies (E.G.: rental agencies and other vehicle services) chose not to replace inventory adding to the shortage of used vehicles in the market.
In accordance with The Code of Virginia 58.1-3503, the City of Charlottesville Commissioner of the Revenue uses the "Clean Trade-in Value" established by NADA as fair market value.
Personal Property Tax Exemption for Disabled Veterans
The Constitution of Virginia [Article X, Section 6(a)(8)] and Virginia Code §58.1-3668 was amended effective January 1, 2021 to exempt from taxation one motor vehicle owned and used primarily by or for any Veteran of the Armed Forces or Virginia National Guard who meets the following criteria:
- Veteran must have been rated by the US Department of Veterans affairs or its successor agency pursuant to federal law with a 100% service-connected, permanent and total disability.
- The one motor vehicle includes only a passenger car or a pickup or panel truck that is registered for personal use.
- The following ownership and use qualify for personal property tax exemption:
- The vehicle is owned and used by the disabled veteran.
- The vehicle is owned jointly with the spouse of the disabled veteran.
- This exemption shall be applicable beginning on the date the motor vehicle is acquired or January 1, 2021, whichever is later, and shall not be applicable for any period prior to January 1, 2021.
- Once a vehicle has been selected to receive the exemption, another vehicle (i.e. a replacement vehicle or a vehicle purchased mid-year) can only be selected if the original vehicle is disposed or sold.
- Leased vehicles and vehicles owned by a business will not qualify.
- A vehicle owned by a trust of any type, either revocable or irrevocable, does not qualify for the tax exemption.
- What types of personal property are taxable?
- How is personal property assessed?
- How is the amount of tax determined?
- What is PPTR and How do I Qualify?
- What is proration?
- If I move out of Charlottesville or sell my automobile, will my tax bill be prorated?
- When is my personal property tax bill due?
- I have purchased a new vehicle and registered it at DMV. Do I need to obtain a City of Charlottesville decal?
- I have just moved into the City of Charlottesville, must I notify the Commissioner's Office?
- I sold or no longer own a vehicle or trailer, who do I notify?
- If I buy an automobile, whom must I notify?
- I am active duty military, am I liable for personal property tax in the City of Charlottesville?
- I am a full-time college student, am I liable for personal property tax in the City of Charlottesville?
The City of Charlottesville assesses an annual license fee on every motor vehicle, motorcycle, and trailer that is garaged in the city and has an active state registration. License fees are due on June 5 each year and are included on the personal property tax bill. If you have questions regarding the vehicle license fee, please call 434-970-3160.
Please note that these prices apply to vehicles that are not for hire or rent.
|Passenger Vehicle (4,000 Pounds or Less)||$28.50|
|Passenger Vehicle (4,001 Pounds and Over)||$33.50|
|Trailer (1 to 1,500 Pounds)||$10.00|
|Trailer (1,501 to 4,000 Pounds)||$20.50|
|Trailer (4,001 Pounds and Over)||$25.50|