Personal Property Tax

PRORATION / ASSESSMENTS

The City of Poquoson prorates personal property tax (except for business personal property), meaning you pay tax based on the number of months you own the property in Poquoson. If you buy or sell property during the year, it will be subject to a prorated tax.

If you have moved, the Commonwealth of Virginia requires that you directly inform the Virginia Department of Motor Vehicles of your new address and garage jurisdiction (*). You may accomplish this on line at www.dmv.state.va.us or by phone at toll free 866-368-5463.

Effective July 1, 1998, the Code of Virginia, Title 58.1, Section 3511, requires that when you move out of Virginia, you must first provide proof of vehicle registration in the new state of residence before requesting proration of your tax bill. The bill will be prorated using the date registered in the new state.

Assessments are based on the average loan value, the lowest published value in the January Eastern Edition of the NADA Official Used Car Guide.

(*) The garage jurisdiction indicates the city/county where the vehicle is normally garaged, which may or may not be the same as the mailing address. The garage jurisdiction may determine the situs for personal property tax.

MILITARY

The Federal Soldier's and Sailor's Civil Relief Act exempts active duty military personnel from personal property tax in any state other than their state of legal residence. Therefore, vehicles registered in the active duty, non-Virginia resident military person's name only will be exempt from personal property tax. Every person whose name is on the registration must supply a copy of their current Leave and Earnings Statement. When military persons retire and remain in Poquoson, their vehicle(s) will be subject to the personal property tax. Any vehicle that is jointly titled to an active duty military member and a non-active duty military member and all leased vehicles are taxable. All vehicles owned by military individuals who claim Virginia as their legal state of residence are subject to personal property tax, regardless of where the vehicle is physically located.

Personal Property Tax Relief

The Personal Property Tax Relief Act (PPTRA) of 1998, approved by the General Assembly on April 24, 1998, prescribes a five-year plan for phasing out the personal property tax bill for owners of qualifying personal-use vehicles valued between $1,000 and $20,000. For qualifying vehicles valued at $1000 and less, the State pays 100%. In 1998, the state rebated 12.5% of personal property tax paid; in 1999, the State paid 27.5%; in 2000, the State paid 47.5%; in 2001 and through 2005, the State paid 70%. For 2006 forward, the Virginia State Legislature changed the method of reimbursement to a fixed lump sum, meaning that for 2006, the Poquoson relief amount fell to 60%, 2007 was 55%, and 2008 was 50%. The reimbursement percentage may drop each year.

Qualifying vehicles are those used predominantly for non-business purposes and owned or leased by natural persons. A vehicle is ineligible for the program if:

More than 50% of the mileage for the year is for business purposes and is deducted for federal income tax purposes or reimbursed by an employer; or
More than 50% of the depreciation associated with the vehicle is deducted as a business expense; or
The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Code [which by definition requires 50% or greater of business use]; or
The vehicle has a gross weight of more than 7500 lbs.; or
The vehicle is registered in a business name; Partnership; Corporation; or LLC (Limited Liability Company); or
It is a Motor Home.

For more information on the PPTRA, please call the Commissioner of the Revenue's office at (757) 868-3020.

Personal Property Tax Rates in Poquoson

Vehicles, trailers, motorcycles: $4.15 per $100 of assessed value (effective 2007 no city decals)

RV's, campers, boats: $1.50 per $100 of assessed value

Business Personal Property Filing Form