Personal Property Taxes

When do I need to file a Personal Property return for my vehicle?
When a person initially acquires an automobile and/or moves an automobile into Henrico County, that person must file a Personal Property return.

How are automobiles assessed for Personal Property taxes?
Henrico uses the loan value provided by the National Automobile Dealers Association (NADA) to assess Vehicle Personal Property.

What is the general Personal Property tax rate?
The general tax rate is $3.50 per $100 of assessed value. (Please Note: The rate may vary slightly due to sanitary districts.)

Are there exceptions to the general tax rate?
Yes, there are a few specific exceptions in the County Code.  The rate is $1.00 per $100.00 of the assessed value for qualifying vehicles used by volunteer firefighters and volunteer members of rescue squads, and $0.01 per $100.00 of the assessed value for disabled veterans' vehicles and motor vehicles specially modified to provide transportation to physically handicapped individuals.

How is the Personal Property tax calculated?
The assessed value is multiplied by the appropriate tax rate.

Do I need to file a Personal Property return on my automobile each year?
No, Henrico County has adopted a procedure known as filing by exception.  This requires the owner of an automobile to file an initial return after acquiring the automobile or moving into the County.  Thereafter, the taxpayer only needs to notify the Vehicle Section if he or she disposes of or moves the automobile out of the County.

Are adjustments made to the assessment to reflect high mileage or problems with the physical condition of the automobile?
Yes, adjustments can be made for either high mileage or physical condition.  For high mileage, on-site inspections are done on odometer readings from January to March. If the deadline has passed, documentation must be submitted to the County office dated as close to January 1st of the current year as possible.  For adjustments based on condition of the automobile, an application will need to be completed and submitted to the County office for review. Examples of Documentation: Pink Inspection Slip, Service Order (oil change, tires, etc.). Documentation must show vehicle information, mileage and date. For a reassessment based on condition, an application will need to be completed and submitted to the County office for review. Application for reduction based on mileage or condition here.

Can I appeal my Personal Property assessment?
Yes, a specific appeal form must be submitted to the Finance Department.

If I sell my vehicle during the year, can the Personal Property taxes be refunded?
Yes, the taxes will be adjusted based upon the date the vehicle was sold.

How does Henrico County assess aircraft, boats, boat motors, motorcycles, motor homes, trailers, and trucks weighing over 14,000 pounds?
The assessment is derived using the cost of the property and the date it was acquired.  The following depreciation schedule is applied to the property: 
1st year - 75% of Cost
2nd year - 60% of Cost
3rd year - 50% of Cost
4th year - 40% of Cost
5th year - 30% of Cost
6th year and subsequent – 20% of Cost and the assessment will hold at this value until the property is sold or moved out of Henrico County.

County Filing Form for Trailers, Motorcycles, Motor Homes, Heavy Trucks

County Filing Form for Boats and Boat Motors

Sold / Junked Vehicle

• Notify the Department of Motor Vehicles of the date the vehicle was disposed. (Even if the vehicle was traded in at a dealership, still contact DMV to make sure the record has been updated with disposal date).
  
• Contact the County of Henrico Finance Dept. to have records updated to reflect the disposal date.
  
• Vehicle is taxable until the date of disposal.
  

If vehicle is sold after before July 1^st and the plates have been turned into DMV, the vehicle license tax will be adjusted to half price.

Moved out of Henrico

• Notify the Department of Motor Vehicles of the address change and jurisdiction change.
  
• Register the vehicle in the locality to which you moved.
  
• Contact the Henrico County Finance Dept. to have records updated to reflect move out date.
  
• If vehicle is moved out prior to July 1^st, the license tax will be adjusted to half price upon proof of registration of this vehicle in another locality within Virginia.

  Division of Motor Vehicles

County Filing Form

Personal Property Tax Relief

What is Personal Property Tax Relief or PPTRA?
The State of Virginia has allocated funds to provide tax relief for qualifying vehicles in the County of Henrico. The amount of tax relief is based upon the total dollars from the Commonwealth divided by the total tax of all qualifying vehicles in the County. The 2005 General Assembly capped the total cost of tax relief for the Commonwealth of Virginia at $950 million.  It is possible that the portion of the total personal property tax on your vehicle that you have to pay may increase as the number of qualified vehicles in Henrico County increases.

What is the current rate of PPTRA reimbursement in Henrico?
The rate is 61% for 2007.

What is a qualifying vehicle?
Any passenger car, motorcycle, pickup or panel truck having a registered gross weight of less than 7,501 pounds.  Furthermore, the vehicle must be owned or leased by an individual and NOT used for business purposes.  A leased vehicle for personal (non-business) use will also qualify when the lessee is responsible for payment of the personal property tax by the terms of the lease agreement.

What is a non-qualifying vehicle?
A vehicle used predominantly for business purposes.  This includes a vehicle leased by an individual and the leasing company pays the tax without reimbursement from the individual.  Likewise, a pickup or panel truck having a registered gross weight of 7,501 pounds or greater does not qualify.

What is the definition of business purpose?
If your vehicle meets any of the following criteria, your vehicle is considered predominantly used for business purposes and does not qualify for Personal Property Tax Relief. Therefore, the taxpayer would be responsible for full payment of the tax:

• More than 50% of the mileage for the year is claimed as a business expense for Federal Income Tax purposes OR is 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;
• The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual.