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Smyth County Commissioner of
Revenue Office
Tax Relief
Tax Relief Program
There is a tax relief program, for real
estate, beginning every March 1st and going through May 31st. The
requirements for this program are:
-Income of $22,000 or less
(counting all income of everyone in the
household)
-Assets valued at $35,000 or less
(not counting the house you live in and
up to 1 acre of land it may be sited on)
We also have a land use program for agricultural land. There must
be 5 acres or more to qualify.
Personal Property
Tax Relief Act of 1998
What is the Personal Property Tax Relief Act?
The Personal Property Tax Relief Act
of 1998 provides tax relief for passenger cars, motorcycles, and pickup
or panel trucks.
A vehicle must meet all three of the
requirements below to qualify for tax relief. The vehicle must:
- Be a passenger car, pickup or
panel truck weighing less than 7,501 pounds, or motorcycle; and
- Be owned by an individual or
leased by an individual under a contract requiring such person to
pay the tangible personal property tax; and
- Be used 50% or less for business
purposes.
Motor homes, boats, and farm use
vehicles DO NOT qualify for tax relief.
Does your vehicle qualify for Car Tax Relief?
If you can answer yes to 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.
-
Is 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?
-
Is more than 50% of the depreciation associated with the vehicle is
deducted as a business expense for Federal Income Tax?
-
Is the cost of the vehicle is expensed pursuant to Section 179 of
the Internal
Revenue Service Code?
-
Is 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 the Smyth County's effective tax
rate in
effect
on August 1, 1997.
You are required to certify annually to Smyth County that your vehicle
remains qualified to receive car tax relief. Tax Form 762
(personal property) must be completed and submitted by May 1 of each
year. You must list all items you owned on January 1 and indicate
business or personal use for all vehicles listed. 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 the
Commissioner of Revenue at 276-782-4040. When you display your Smyth
County decal and pay your taxes on qualified vehicles, you are
certifying to the Smyth County that your vehicle has been qualified
correctly.
Personal Property Tax Relief Act (PPTRA)
Update for 2006
Significant changes in the Personal
Property Tax Relief Act were adopted by the 2004 General Assembly,
effective in the 2006 tax year. Originally, the car tax credit was to be
phased in over a five-year period. Because of the current budget
restraints, the General Assembly will determine the percentage of tax
relief each year beginning in 2006.
Those with delinquent taxes for 2005
and prior years may be subject to paying the full tax amount, plus
penalty and interest. Therefore, it is important for those with
delinquent taxes outstanding on qualifying vehicles to remit those taxes
as soon as possible.
Links on Personal Property Tax Relief Act
Information
If you have any questions or need
additional information about the Personal Property Tax Relief Act please
to contact us at (276) 782-4040
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