City Hall

Car Tax Relief

The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pickup or panel truck having 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 purposes if:

  • 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 Services Code
  • 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. Tax relief is calculated using the City of Winchester ’s effective tax rate in effect on August 1, 1997 .

Personal Property Tax Relief is based on the original 1998 Rate of $3.50. City Council, by City Ordinance, increased the Rate to $4.50 effective Jan. 1, 2005 for Tax Year 2005. Winchester Personal Property is paid in arrears. Therefore, the rate is for 2005 taxes paid in 2006. (Grandfathered vehicles are billed separately and due December 5, 2005.)

Attention:

Personal Property Tax Relief Notice

In accordance with changes made by the 2005 General Assembly, delinquent tax bills for tax years 2000 - 2005 that remain unpaid as of April 1, 2007* will require 100 Percent of the original tax to be PAID BY THE TAXPAYER.

Pay now to avoid paying higher taxes later.

Reimbursement from the Commonwealth of Virginia may be depleted prior to APRIL 1, 2007. In the event that should happen, the taxpayer would then be responsible for 100 percent of the tax as of the depletion date determined by the Commonwealth of Virginia.

For additional information and forms see Commissioner Of The Revenue)