County supervisors have unanimously approved another year of property tax relief on personal use vehicles, in a program that counts for less each year as the state falls farther behind on its own tax relief program.
The Personal Property Tax Relief Act of 1998 was passed to give relief to taxpayers from local taxes on vehicles, intended to eliminate those taxes over a five-year period on qualifying vehicles. The state would reimburse the locality for that lost revenue.
However, the state never reached that goal, topping out at 70 percent reimbursement in 2001. The General Assembly then froze the total amount it would reimburse all localities in 2006, and the Personal Property Tax Relief Act was no more.
Since that time, Loudoun has received $48,070,701 each year from the state. In 2005, that was roughly a 70 percent reimbursement, but as the number and value of vehicles in Loudoun has grown, that figure has counted for less and less. This year, it equates to a 35 percent reimbursement, according to a county staff report.
In 2020, for personal use vehicles, Loudoun will provide 100 percent tax relief on vehicles valued at $1,000 or less, and 35 percent tax relief on vehicles valued between $1,000 and $20,000. Vehicles worth more than that receive 35 percent tax relief on only the first $20,000 of value, or $294 in relief.
Loudoun levies at tax of $4.20 per $100 of assessed value on vehicles.