(1) What is personal property tax?
Personal property is an ad valorem (value-based) tax
levied by counties and cities in Virginia.
(2) What is considered personal property for
taxation purposes?
Alexandria taxes the following types of personal property:
automobiles, trucks, taxicabs, motor vehicles modified
for use by the disabled, motorcycles, campers and other
recreational vehicles, boats, trailers, and all unlicensed
vehicles.
(3) Who must file and pay personal property
tax?
Any person owning or holding personal property located
within the City of Alexandria as of January 1, including
property not registered in Virginia and any property
(vehicles, etc.) which was located in the City (acquired
situs) on or after January 1.
(4) When must I file an Alexandria City Vehicle
Registration and Personal Property Tax Return?
How do I obtain a decal for my car's windshield?
Please complete a copy of the Application for City
Vehicle License (Decal). Select the format desired.
All vehicles located in the City for more than 30
days must be registered, and a decal must be purchased
and displayed on the vehicle's windshield within 30
days of the establishment of a taxable location in Alexandria.
You may register your vehicle in person, or by mail.
Vehicles already registered with the City will continue
to be assessed every year unless the vehicle owner informs
the City that the property has been moved or sold.
NOTE: Titling and registering your car with
the Virginia Department of Motor Vehicles (DMV) does
not automatically register the vehicle with the City
of Alexandria.
(5) Is there a penalty for filing late?
Yes. The City imposes a late filing penalty for property
declared after the 30-day deadline. The late filing
penalty is 5% of the tax due, or $10.00, whichever is
greater, but the penalty cannot exceed the amount of
the tax.
(6) My car is registered out-of-state. Do I
still need to register my car with the City?
Yes, if you intend to have your car garaged, parked,
or stored in Alexandria for 30 days or more, you must
register the car within 30 days and purchase the City
decal. Vehicles not displaying a current City decal
are subject to ticketing. Your car is assessed property
tax for the length of time it is located in Alexandria.
(7) How is property assessed?
The fair market value of motor vehicles, for assessment
purposes, is the average trade-in value, as of January
1 of the year in which the tax is assessed, as shown
in the National Automobile Dealers Association (NADA)
Official Used Car Guide. New vehicles that do not appear
in the NADA Guide are assessed at 95% of the manufacturer's
suggested retail price (MSRP).
(8) How is the tax rate to be levied on personal
property determined?
The Alexandria City Council establishes a personal
property tax rate during May of each year. The actual
tax is then established by multiplying the property's
assessed value by this rate.
(Value) x (Rate) = Tax
(9) I will only have my car in the City for
four months. Do I still have to pay a full year's tax?
Motor vehicles are taxed only for the time the vehicle
are located (have situs) in Alexandria. A taxpayer
is liable for a full month's tax if the vehicle is acquired
or located in the City between the 1st and 15th of the
month. For example, a vehicle owned as of January 1
and moved out on April 30 would be taxed for 4 months.
Property tax for a full year would be for the period
of January 1 through December 31.
NOTE: A temporary absence out of the City does not
make you eligible for proration.
(10) If I purchase another car and sell, junk,
trade, or otherwise dispose of my old car, what must
I do?
You must register the new vehicle with the City and
advise us on the status of your old car. Scrape the
decal off your old car's windshield and return the decal
pieces to Revenue (be sure to bring both
vehicles' registration cards, or titles, or bills of
sale). The Treasury Division will then issue you a replacement
decal for your new vehicle for one dollar. LINK"
TO DISPOSITION FORM
(11) If I dispose of my vehicle or move the
vehicle out of Alexandria, what should I do?
You should report the moved or disposed vehicle to
the Revenue Division. If you have already paid personal
property taxes on the vehicle, you may be eligible for
a partial refund from the Treasury Division.
(12) I am an active duty member of the military.
Am I liable for personal property tax in the City of
Alexandria?
No, if (1) the military member is legally domiciled
in a state other than Virginia, AND (2) if the property
is registered only in the name of the active duty military
person. Eligible military members are required to present
their military I.D., Leave and Earnings Statement (LES),
and a state vehicle registration to claim an exemption
from personal property taxation and obtain a City decal
at no cost. However, any property registered jointly
with a non-military member (including your spouse or
dependent) is taxable. A tangible personal property/vehicle
registration tax return must be filed for each vehicle
owned regardless of the active duty member's legal residence.
LINK
TO APPLICATION
(13) As an active duty member of the military,
am I liable for the personal property tax due on a leased
vehicle?
Yes, since the property is not owned by the military
member, it is subject to the personal property tax.
(14) When must personal property taxes be paid?
The due date for payment of personal property taxes
is October 5 of each year. If you purchase a vehicle
after October 5, you have 30 days to register and pay
the tax on the newly acquired vehicle.
(15) Where should I send the payment for my
personal property tax?
Payments should be sent to: Treasury Division, Department
of Finance, P.O. Box 323, Alexandria, Virginia, 22313-0323.
Inquiries and return mail other than checks should be
sent to: Revenue Division, Department of Finance, P.O.
Box 178, Alexandria, Virginia, 22313-0178.
(16) I thought the "car tax" was going to be
eliminated. Why do I still have to pay?
The Personal Property Tax Relief Act of 1998 (PPTRA) established a program whereby the Commonwealth of Virginia grants personal property tax relief to certain taxpayers to a percentage of the total tax levied on the first $20,000 of assessed value for qualifying vehicles. In 2004, the General Assembly passed legislation capping PPTRA relief at $950 million for the entire state, beginning with tax year 2006. Localities now receive the same amount from the State each year.
Each locality must annually determine a relief percentage that equitably distributes the locality's payment among its qualifying vehicles. For 2007, qualifying vehicles in Alexandria will receive personal property tax relief of 69% of the tax levied on the first $20,000 of assessed value. Qualifying vehicles assessed at $1,000 or less will receive 100% relief. To calculate your personal property tax relief, multiply the vehicle's value or $20,000 (whichever is less) by the tax rate of 4.75% and then by the PPTRA rate of 69%. For additional information regarding PPTRA, please call the City’s Personal Property Tax Branch at 703-838-4560. Si usted requiere asistencia en Español, por favor llamar al 703-519-6506, extension 693.
The PPTRA provides personal property tax relief for qualifying 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 less than 50% for business purposes.
Motor homes and trailers do not qualify for tax relief.
Does your vehicle qualify for Personal Property Tax Relief?
If you can answer YES to any of the following questions, your motor vehicle is considered by the Commonwealth of Virginia to have
a business use and does NOT qualify for Personal Property Tax Relief.
- 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 more than 50% of the depreciation associated with the vehicle deducted as a business expense for Federal Income Tax
purposes?
- Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
- Is the vehicle leased by an individual and does the leasing company pay the tax without reimbursement from the individual?
(17) If I disagree with the City's assessment
of my property, how can the value be changed?
You may request a reduction in your assessment ONLY
for high mileage and/or body damage by requesting an
Appeal Form from the Personal Property Tax Branch.
(18) If I register in person, what information
must I bring?
You must bring a valid driver's license or state-issued
identification, a copy of your vehicle's title, or registration
(temporary or permanent), or a bill of sale. Persons
registering on someone else's behalf must present a
signed, notarized statement from the vehicle owner explicitly
granting permission to register the property with the
City. Additionally, individuals wanting to obtain a
residential parking permit for their district must provide
proof of residency, such as a utility bill, if their
license or vehicle information does not contain the
current address. For further information concerning
the residential permit, you may obtain the pamphlet
"Residential Permit Parking Program Facts" from the
Treasury Division.
NOTE: The following documentation is NOT acceptable
for registration: insurance cards, signed titles, tax
receipts from other localities, expired vehicle registrations.
(19) What are the hours and locations where
I may register in person? How may I register by mail?
Citizens may register their property at the Personal Property Tax Branch, located in Room 1410 of Alexandria City Hall, at 301 King Street in the City's Old Town section. Hours of operation are Monday through Friday, from 8 a.m. until 5 p.m. Please note that City offices observe most State and Federal holidays. You may register by mail by contacting the Personal Property Tax Branch at (703) 838-4560, or by clicking on the following link:
LINK
TO APPLICATION
(20) If my decals and/or permits are destroyed,
stolen, or lost due to an accident or vehicle
repairs, how may I obtain replacements?
Stolen: You MUST report the loss to the police department
where the theft occurred, and bring the case number
to the Personal Property Tax Branch.
Destroyed: You MUST scrape off as much of the decal
and/or permit as you can. If that is not possible, a
copy of the repair order is acceptable.
For information regarding your tax assessment,
billing information, or to make a payment, please contact
the following numbers:
REVENUE DIVISION
Vehicle Registrations, Vehicle Assessments, Address
Changes (703) 838-4560
TREASURY DIVISION
Visitor Permits, Payments (703) 838-4777
Parking Tickets (703) 838-4949
ALEXANDRIA POLICE (non-emergencies)
Stolen decals, parking permits(703) 838-4444
VIRGINIA COMMONWEALTH'S ATTORNEY
Parking Ticket hearings (703) 519-3360
FINANCE DEPARTMENT 703-838-4755
REVENUE DIVISION 703-838-4560
TREASURY DIVISION 703-838-4777
