The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pick up or panel truck having a registered gross weight of less than 7,501 pounds. The vehicle must be owned or leased by an individual and NOT used for business purposes.
Vehicles qualified for tax relief are noted on your tax bill and show a reduction of the portion of the tax the Commonwealth will pay. For qualified vehicles, your tax bill is reduced by 53% (2016% of tax relief) 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 City's effective tax rates that were in effect on August 1, 1997.
Since the City adopted "Filing by Exception" effective January 1, 2006, residents of Chesapeake will be required to register their motor vehicles with the Commissioner of the Revenue only once. Only persons with new information to report or with changes will be required to file. Therefore, it is important that you review your personal property tax bills to be sure that your vehicles are properly qualified. 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 the Revenue's office. When you pay your taxes on qualified vehicles, you are certifying to the City that your vehicle has been qualified correctly.