Vehicles that are (1) leased by a natural person, (2) under a contract requiring the lessee to pay the personal property tax, and that are (3) used for nonbusiness purposes potentially qualify for tax relief under the Personal Property Tax Relief Act. Since 7/15/98, leasing companies have reported to the Department of Motor Vehicles (DMV) current leasing contracts covering qualified vehicles. Leasing companies are required to send DMV monthly reports on vehicles leased and garaged in Virginia by locality, showing all modifications, additions, and deletions to previous reports as of the last day of the preceding month. DMV, in turn, forwards these reports to local Commissioners of the Revenue to assist them with determining which vehicles qualify for car tax relief.
In January 1999, the qualified vehicle records provided by leasing companies were entered into an automated database. The database allows DMV to accept qualified vehicle information from leasing companies via e-mail, diskette, zip disk or paper. In addition, DMV may provide monthly reports to localities via e-mail, diskette, zip disk or paper. DMV requires leasing companies to submit data in a specified format.
If you have not received car tax relief on a leased vehicle that you believe qualifies for car tax relief, contact your leasing company and ask them to be sure to report your vehicle to DMV. If your leasing company has reported your leased vehicle to DMV and you have not received car tax relief, contact your local Commissioner of the Revenue or Director of Finance.