Property Taxes : Personal Property Tax
General Information
The City levies a tax each calendar year on all automobiles,
trucks, taxicabs, motor vehicles with specially designed
equipment for use by the disabled, motorcycles, boats,
trailers, campers and other recreational vehicles with
situs in the City. A vehicle has situs for
taxation in the City if it is garaged, parked or stored
in the City, or if it is registered to a City address
with the Virginia Department of Motor Vehicles.
Filing" Procedures
Penalty for Failure to Register a Vehicle
Vehicle owners and purchasers of new vehicles must
register their vehicles within 30 days of purchase or
obtaining situs in the City. Persons who neglect or
fail to register their vehicles within 30 days will
be charged a late filing penalty of $10 or five percent
of the tax assessable, whichever is greater. However,
the penalty cannot exceed the tax assessable. Any such
penalty when so assessed shall become a part of the
tax.
For registration information, please see Motor Vehicle
License Tax section.
Vehicle owners and purchasers of new vehicles who live
in a residential parking district may also be required
to obtain a City residential parking permit. . It
is important to note that there is no 30-day “grace
period” for obtaining a residential parking permit.
For residential parking permit information, please
see Residential Parking Permit Program Facts section.
Assessment
The City determines the fair market value of vehicles
for assessment purposes by using nationally recognized
pricing guides. The guide most often used is the National
Automobile Dealers Association (NADA) Official Used Car
Guide. The City uses the average trade-in value, as of
January 1 of the tax year. A new vehicle is assessed at
95% of its manufacturer's suggested retail price as stated
in a recognized pricing guide.
Appealing the Assessment
The City assesses personal property on the assumption
that it is in fair condition for its age. If a vehicle
is not in average condition because of high mileage, extensive
body or interior damage or serious mechanical malfunctions,
the vehicle owner can request a review of the assessment.
Forms and instructions for appealing an assessment
may be obtained by calling the Personal Property Tax
Branch 703-838-4560. All appeals must be received by
December 31 of the current tax year.
Appeals are reviewed in the order received. The appeal
process takes 60 days or more. The tax bill is still
required to be paid by the October 5 due date. If the
assessment is later reduced because of the property's
condition, the City will issue a tax refund.
Computation of Tax
If the vehicle has situs for taxation in the City
for a full year: The City determines the tax by multiplying
the property’s assessed value by the tax rate.
If the vehicle has situs for taxation in the
City for less than a full year: The City determines
the tax by first multiplying the vehicle's assessed
value by the portion of the year the vehicle has situs
in the City. (A taxpayer is liable for full month's
tax if the vehicle has situs in the City between
the 1st and 15th of the month.) The City then multiplies
this prorated amount by the tax rate to determine the
tax.
If the vehicle owner paid taxes on the vehicle during
the same tax year to another jurisdiction that does
not prorate, the City will relieve all taxes due on
that vehicle in the City for the calendar year taxes
were paid to the non-prorating jurisdiction. If a vehicle
owner notified the Personal Property Tax Branch that
situs for a vehicle has changed or that a vehicle has
been disposed of during the tax year, the City will
prorate the taxes based on the number of months the
vehicle was owned or had situs in the City, or
was registered to a City address with the Virginia Department
of Motor Vehicles.
City Council determines the personal property tax
rate during May of each year. The tax rate applies to
the current tax year beginning January 1.
Excluded from Taxation
The following persons are required to file annual personal
property tax returns, however, they are exempt by law
from paying personal property taxes:
Military personnel who are on extended active duty
and are not legal residents of Alexandria, Virginia.
The vehicle must be registered solely in the active
duty military person's name.
Members of the U.S. Congress and their spouses and
recognized Foreign Diplomats.
How the Tax is Collected
Personal property tax bills are mailed in August of the
tax year and payment is due by October 5. All payments
should be sent to:
Treasury Division
P.O. Box 323
Alexandria, Virginia 22313
703-838-4777
If you do not receive a tax bill, please contact the
Personal Property Tax Branch. You are still liable to
pay the tax by the due date. Failure to receive a bill
does not relieve the taxpayer from the payment of the
tax, penalty and interest.
Electronic Payments
Payments may also be made online, or by touch-tone
telephone.
| Save
Money on Car Taxes! |
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The Personal Property
Tax Relief Act reduces taxes on a percentage of
the first $20,000 value for passenger cars, motorcycles,
and pickup or panel trucks having a registered gross
weight of less than 7,501 pounds.
To qualify, a vehicle must:
 be
owned by an individual or leased by an individual
under a contract requiring the individual to pay
the personal property tax;
- AND-
be
used 50% or less for business purposes.
|
| Big trucks, motor homes, trailers, farm
and "for-hire" vehicles such as taxi cabs DO
NOT qualify for tax relief. |
| |
| Does your vehicle
qualify for lower taxes? |
| If you can answer YES to any
of the following questions, your motor vehicle is
considered by State Law to have a business use and
DOES NOT qualify
for Car Tax Relief. |
| Is
more than 50% of the depreciation associated with
the vehicle deducted as a business expense for Federal
Income Tax purposes? |
|
| Is
more than 50% of the mileage for the year used as
a business expense for Federal Income Tax purposes
or reimbursed by an employer? |
| Is
the cost of the vehicle expensed pursuant to §179
of the Internal Revenue Service Code? |
| Is
the vehicle leased by an individual and the leasing
company pays the tax without reimbursement from the
individual? |
 |
Effective January 1,
2003, vehicle owners must certify the use of a vehicle
to be either personal or business on an annual basis.
Failure to certify qualifying vehicles for tax relief
provided by the Personal Property Relief Act of
1998 will result in the loss of the tax reduction
on your tax bill. All businesses registered in the
City of Alexandria will be required to report all
vehicles owned or used for business purposes. |
| Tax relief provided on
all non-qualifying vehicles will be billed to vehicle
owner(s). For more information on the Personal Property
Tax Relief Act of 1998 or your vehicle tax assessment,
please contact the Personal Property Tax Branch located
at 301 King Street, City Hall Room 1410, (703) 838-4560. |
Citizens may certify individual
vehicles by either:
- Completing an On-Line Certification (email address
required);
- Printing and returning signed forms via mail
or fax;
- In person at City Hall during normal busines
hours.
|
| Unfortunately, certifications
for car tax reduction may not be accepted over the
phone. |
| Mail/Fax Certification
Form |
| Certify On-Line
|
Further Information
Back
to Tax Guide
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