Personal Property Tax Information:
· New to Virginia? Virginia allows localities to tax the personal property of its residents, which for most people, amounts to their private automobiles, trucks, trailers, boats, motorcycles, and recreational vehicles. This is an ad valorem tax, or based on the value of the vehicle. A recognized price guide must be used, if possible. For most vehicles, Clarke County (like most other localities) uses the National Automobile Dealer’s Association (NADA) annual guide for the trade-in value of the vehicle. Other guides are used for some types of vehicles. Consideration is given for High Mileage Form or poor condition, but the mileage amount must be provided by Feb 15 of each year, using the most recent inspection receipt or garage service receipt for a basis.
· Pro-Ration of Vehicles. Motor vehicles, trailers or boats are pro-rated for tax based on the amount of time they are actually in the county. A period of greater than one half of a month constitutes a full month for pro-rating. If a vehicle arrives from a non-pro-rating locality, that locality has the authority to tax the vehicle for the entire year. If a vehicle leaves Clarke County to transfer to a non-pro-rating community, Clarke County has the responsibility to tax the vehicle for the entire year.
· Personal Property Tax Relief: Motor vehicles (cars, smaller trucks, SUV’s, vans and motorcycles) are eligible for the Personal Property Tax Relief discount if they are used for personal use only or 50% or less for business purposes. The amount of the discount may be changed annually since it is based on what amounts to a block grant from the State. Since more eligible vehicles enter the county annually, the discount to be granted is divisible by more vehicles and is reduced. Vehicles used 51% or more for business use, exceed 7,500 pounds of gross weight, or take a excessive federal income tax deduction or are farm-licensed are ineligible for the discount. The discount for calendar year 2007 is 49.8% of the vehicle value.
· Business/Farm Tangible Personal Property: Furniture and fixtures or equipment used for business purposes are also eligible for local taxation. Valuation is base on the cost of the equipment and the year purchased. Business Equipment formare available through our office or online.
· Machinery and Tools Tax: This tax is levied on the applicable business equipment of firms engaged in manufacturing, mining, water well drilling, processing or re-processing,, radio or television broadcasting, dairy (not dairy farming), dry cleaning or laundry business. Machinery and Tools forms are available through our office or online.