Phone: (804) 646-7000
Online: RVA311.com
Please submit all inquiries using
the City's RVA 311 system
Address:
Department of Finance
900 E. Broad Street
Richmond, VA 23219
Vehicle Personal Property Tax
The City’s Vehicle Personal Property Tax is managed by the Department of Finance’s Personal Property Unit. The Vehicle Personal Property Tax is levied on the value of property including motor vehicles, farming equipment, boats, motorcycles, recreational vehicles, campers and trailers and is commonly known as an ad valorem tax.
Pay Vehicle Personal Property Tax Online
Click here to pay Vehicle Personal Property Tax online
Vehicle Personal Property Tax Forms
- Request for Motor Vehicle Reassessment Based on High Mileage – Use this form, filled out by vehicle owner, to request a reassessment of your vehicle due to high mileage
- Request for Motor Vehicle Reassessment Based on Condition – Use this form, filled out by vehicle owner, a motor vehicle repair person or estimator, and a notary to request a reassessment of your vehicle due to body damage or mechanical malfunction
- Penalty and Interest Waiver Online Application Form – Use this online form to request a waiver of penalty and interest for a number of different tax types
Vehicle Personal Property Tax Rates, Dates, Penalties, and Interest
- Rates: $3.70 per $100 of assessed value for passenger vehicles, boats, farming equipment and trucks with a gross vehicle weight of less than 10,000 lbs
- $2.30 per $100 of assessed value for trucks, for-hire or apportioned, with a gross vehicle weight of 10,000 lbs. or more
- Dates: June 5 annual due date
- 60 days of acquiring a tax situs in the City in the year for which they are levied for newly acquired situs
- January 1 value of Vehicle Personal Property established
- Penalty: 10 percent or $10.00, whichever is greater, when not paid by the due date
- Interest: 10 percent annually when not paid by the due date
Vehicle Personal Property Tax Governing Legislation*
For detailed legislative information on the Vehicle Personal Property Tax, please refer to the following:
- Code of Richmond: Division 6. - Tangible Personal Property and Machinery and Tools
- Code of Richmond: Division 7. - Personal Property Tax Relief
- Code of Virginia: Chapter 35. Tangible Personal Property, Machinery and Tools and Merchant's Capital
- Code of Virginia: Chapter 35.1. Personal Property Tax Relief
* Please note, this list may not be exhaustive of all sections of governing code
Vehicle Personal Property Tax Relief
The City of Richmond provides Vehicle Personal Property Tax relief in multiple ways:
Personal Property Tax Relief Act (PPTRA)
The Personal Property Tax Relief Act (PPTRA) was first adopted by the Virginia General Assembly in 1998 and subsequently amended in 2005. PPTRA provides tax relief to owners of personal use vehicles based on the assessed value of the vehicle. The owners of vehicles that qualify receive a full or partial exemption on the first $20,000 of assessed value of the vehicle. Qualifying vehicles with an assessed value of $1,000 or less receive a full exemption from the Vehicle Personal Property Tax. Qualifying vehicles with an assessed value greater than $1,000 receive a partial exemption on the first $20,000 of assessed value.
Below is a table that illustrates how the PPTRA would apply to vehicles of varying assessed values based on the calculated 2024 PPTRA percentage of 22.0%.
| Vehicle Use | Assessed Value | Total Tax Amount | Tax Relief | Tax Balance Due |
|---|---|---|---|---|
| Business | $20,000 | $740.00 | None | $740.00 |
| Personal | $1,000 | $37.00 | $37.00 | $0.00 |
| Personal | $10,000 | $370.00 | $81.40 | $288.60 |
| Personal | $20,000 | $740.00 | $162.80 | $577.20 |
| Personal | $50,000 | $1,850.00 | $162.80 | $1,687.20 |
he amount, or percentage, of the partial exemption is authorized each tax year by Richmond City Council resolution. The percentage is calculated by the Department of Finance and divides the $16.7 million provided annually by the Commonwealth amongst qualifying vehicles. The most recent ten years of the approved PPTRA rate can be seen in the table below.
| Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|
| Adopted PPTRA Rate | 58% | 56% | 53% | 53% | 51% | 50% | 50% | 50% | 37% | 22% |
Given the static $16.7 million that Richmond receives every year against the dynamic population growth of Richmond and increasing assessment values of vehicle personal property, the calculated PPTRA rate will drop on a year-to-year basis.
This was particularly true in the wake of the global COVID-19 pandemic; vehicle supply waned, valuations increased drastically, and the calculated PPTRA rate dropped considerably. The calculated 2022 PPTRA rate was 30 percent. However, it was recommended and adopted that the City freeze the adopted to rate in 2022 to the 2021 rate to provide additional relief in excess of the $16.7 million. In 2023 the City ‘stair-stepped’ the PPTRA rate to the midway point between the calculated amount and 50 percent. In 2024 the 22 percent PPTRA was adopted as calculated.
Not all vehicles qualify for PPTRA relief. Vehicles that are used predominantly for business purposes, vehicles for which depreciation and other expenses have been claimed on the federal income tax return of a business or individual, vehicles with a gross vehicle weight of more than 10,000 lbs. and personal use trailers that are used to transport boats, etc. do not qualify. If any of the following questions can be answered yes, the motor vehicle is considered to be used for business purposes under Virginia law and not eligible:
- 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?
Assessment Adjustment for High Mileage
The City provides adjustments to Vehicle Personal Property Tax assessments for high mileage. Please use the form in the Vehicle Personal Property Tax Forms section above to apply for a high mileage assessment adjustment.
Assessment Adjustment for Condition
The City provides adjustments to Vehicle Personal Property Tax assessments based on the condition of the vehicle. Please use the form in the Vehicle Personal Property Tax Forms section above to apply for a condition assessment adjustment.
Vehicle Personal Property Tax Frequently Asked Questions (FAQs)
When does an item of vehicle personal property become taxable by the City of Richmond?
Vehicle personal property becomes taxable in the City of Richmond when the item that is subject to taxation acquires situs, or becomes located, in the City of Richmond on or after the tax day, January 1.
How is the situs of the property determined?
Depending on the type of property, the situs is determined as follows:
| Property Type | Situs Determination |
|---|---|
| Motor vehicles of all types | Where the vehicle is normally garaged or parked |
| Boats | The locality in which the boat is registered with the Department of Wildlife Resources |
| Farming Equipment | The locality in which the equipment is located on the tax day, January 1 |
How is the assessed value of the property determined?
Passenger vehicles (cars, vans, SUVs, etc.) are assessed based on a recognized pricing guide, NADA. (National Association of Automobile Dealers). The City of Richmond bases its assessment on the “Clean Trade-In Value” reported in the NADA Used Car Guide as of January 1 (tax date) of each year. Newer model vehicles that are not available in the NADA Guide are valued using a depreciation schedule based on the cost of the vehicle as reported to the City by the Virginia Department of Motor Vehicles (DMV).
Heavy trucks (those with a gross vehicle weight of 10,000 lbs. or more) are assessed on the “Clean Trade-In Value” reported in the NADA Used Car Guide as of January 1 (tax date) of each year. Vehicles that do not appear in NADA are valued using a depreciation schedule based on the cost of the vehicle as reported to the City by the Virginia DMV. The percentages used to determine the assessed value of heavy trucks is the same as those used to value other business tangible personal property.
Boats are valued based on a percentage, or percentages, of the original cost reported to the City of by the Virginia Department of Wildlife Resources (DWR).
What is the Vehicle License Fee?
The City charges a vehicle license fee for each motor vehicle, trailer and semitrailer which is normally garaged, stored or parked in the City.
Does the City prorate Vehicle Personal Property Taxes?
Yes, with the exception of property taxes on boats. Boats are taxed based on where they are located on January 1. The property taxes on motor vehicles and trailers are prorated based on the date of purchase or the date the vehicle acquires taxable situs in the City on an even month basis.
If a vehicle is purchased on or before the 15th of the month, that entire month counts in the proration of the vehicle for tax purposes. If the vehicle is purchased after the 15th of the month, that month does not count in the proration of the taxes.
For example, consider a vehicle that was purchased on March 12th. For tax purposes the vehicle is taxed for 10 months (March – December) of the tax year. A vehicle purchased on March 16 would be taxed for 9 months (April – December) with the month of March not counting in the proration of the taxes.
I moved from a non-prorating locality to the City of Richmond after January 1. How is my vehicle taxed by the City of Richmond?
Since you moved from a non-prorating locality to the City of Richmond after January 1, the locality from which you moved will tax your vehicle for the entire tax year. Depending on the particular facts and circumstances concerning your vehicle and whether you have been assessed and paid taxes to the locality from which you moved, the City of Richmond may assess your vehicle for property taxes as well and give you a credit for taxes paid to another Virginia locality.
I moved from the City of Richmond to a non-prorating locality after January 1. Why is my vehicle still being taxed by the City of Richmond?
Pursuant to Virginia law, §58.1-3516, “No refund shall be made if the motor vehicle, trailer, semitrailer, or boat acquires a situs within the Commonwealth in a non-prorating locality.” Since the taxable situs of the vehicle on January 1 was the City of Richmond, the vehicle is subject to Vehicle Personal Property Tax in the City of Richmond. The non-prorating locality will not assess the vehicle for property taxes until the next tax year; therefore, the vehicle is subject to taxes until it acquires taxable situs in another Virginia taxing jurisdiction.
My child is attending college and living in the City of Richmond. I own the vehicle they are driving. The vehicle is registered in my name and I do not live in the City of Richmond. How is this vehicle treated for tax purposes by the City of Richmond?
Virginia Code §58.1-3511 provides the situs for taxation is where the vehicle is normally garaged, docked or parked. The following exception is stated in §58.1-3511 regarding the motor vehicles of full-time students attending an institution of higher education:
“However, in the event that a motor vehicle is used by a full-time student attending an institution of higher education, and such use establishes that the motor vehicle is normally garaged at the location of the institution of higher education, the situs shall be the domicile of the owner of the motor vehicle, provided the owner presents sufficient evidence that he has paid a personal property tax on the motor vehicle in his domicile, upon request of the locality of the institution of higher education.”
I have recently moved from the City of Richmond to another locality in Virginia. When I attempted to register my vehicle with DMV at my new address, I was told there was a “hold” on my vehicle registration that had been placed by the City of Richmond. Can you explain what this is about?
In recent years, the City of Richmond and many other localities in Virginia, have entered into agreements with DMV regarding vehicle registration. The DMV program is known as the Vehicle Registration Withholding Program, or VRW. As a participant in the VRW Program, the
City reports outstanding Vehicle Personal Property Taxes to the DMV. The DMV agrees to withhold the vehicle registrations of those who are reported to them as having unpaid property taxes to the City of Richmond.
