About Personal Property Tax Relief
Personal Property Tax Relief is available to vehicles that are used for personal use. The relief is also only given up to the first $20,000 of value for personal vehicles. The reimbursement percentages for those vehicles valued at $1,001 through $20,000 are eligible for relief. Vehicles that are assessed $1,000 and under will be eligible for 100% tax relief.
Qualifying
Vehicles must fit all of the following criteria:
- Automobiles, motorcycles, and trucks with a gross weight of 7,500 pounds or less
- Owned or leased by natural persons who are responsible for the payment of the personal property tax; and
- Used less than 50% for non-business purposes
Non-qualifying vehicles are as follows:
- Any other vehicle not listed above and rucks with a gross weight greater than 7,500 pounds
- Owned or leased in the name of a business
- Used in a business and matching any of the following items:
- More than 50% of the mileage for the year is for business purposes and is deducted for federal income tax purpose or reimbursed by an employer
- More than 50% of the depreciation associated with the vehicle is deducted as a business expense
- The cost of the vehicle pursuant to 179 of the Internal Revenue Service Code (which by definition requires 50% or greater business use)
- The vehicle is leased by a natural person and used for non-business purposes but the lessor pays personal property taxes through a contractual agreement
Note: When truck tags are placed on a motor vehicle for the uses of pulling or hauling, this causes the weight of the vehicle to exceed 7,500 pounds and in turn disqualifying the vehicle for tax relief.
Change in Status
This offices files by exception which means that you do not have to report purchases or sales of motor vehicles. We obtain the information through the Department of Motor Vehicles, and update our records weekly. Individuals must notify DMV of any changes in the following:
- Change in ownership
- Change in address
- Change in name
- Salvaged, abandoned, disabled, etc.