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 $25,000 or less (counting all income of everyone in the
household)
•Assets valued at $65,000 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.
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.
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?
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.
•The Personal Property Tax Relief Act of 1998
•State
and Local Value-Based Taxes on Motor Vehicles
•DMV
Personal Property Relief Tax (PPTRA) Summary
If you have any questions or need additional information about the Personal Property Tax Relief Act please to contact our office at (276) 782-4040.
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