Property Tax Relief (PPTRA)
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 used for business
purposes. A vehicle is considered to be used for business
- More than 50% of the mileage for the year is used as a business expense for Federal
Income Tax purposes OR reimbursed by an employer;
- More than 50% of the depreciation associated with the vehicle is deducted as a business
expense for Federal Income Tax;
- The cost of the vehicle is expensed pursuant to Section 179 of the Internal
Revenue Service Code; or
- The vehicle is 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. 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 Wise
County's effective tax rate in effect on August 1, 1997.
are required to certify annually to Wise County that your
vehicle remains qualified to receive car tax relief.
Therefore, it is important that you review the information
sent to you by Wise County to be sure that your vehicles
are properly qualified. This information may be included
on items such as personal property tax returns, decal applications
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, contact Wise County at (276) 328-3556.
When you display your Wise County decal and pay your taxes
on qualified vehicles, you are certifying to Wise County
that your vehicle has been qualified correctly.