Personal Property Tax Relief Act
Details about Personal Property Tax Relief Act
The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pickup 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. A vehicle is considered to be used for business purposes if:
- More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax.
- 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.
- The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code.
- 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. 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 vehicles assessed value is $1,000 or less, your tax has been eliminated. Tax relief is calculated using the City of Hampton's effective tax rate in effect on August 1, 1997.
You are required to file a Personal Property Return with the City of Hampton annually. Using the information listed above or on the back of the return you will be able to determine if the vehicle qualifies to receive car tax relief. It is important that you review the information sent to you by your locality to ensure 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 City of Hampton at (757) 727-6183. When you pay your taxes, you are certifying to the City of Hampton that your vehicle has been qualified correctly.
For More Information
For more information, contact the Commissioner of the Revenue office at (757) 727-6183 between 8:30 a.m. and 5 p.m.