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 would be considered to be used for business purposes if:
-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.
-More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax,
-The Cost of the vehicle is expensed pursuant to Sections 179 of the IRS 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 applied to each vehicle. For qualified vehicles, your tax bill is reduced by the applicable tax relief percent for the tax year on the first $ 20,000 of value. If your qualifying vehicle’s assessed value is $ 1,000 or less, your tax has been eliminated.
You are required to certify annually to the County of Frederick that your vehicle remains qualified to receive car tax relief. Therefore, it is important that you review the information sent to you by your locality to be sure that your vehicles are properly qualified. This information may be included on items such as personal property returns, decal applications or tax bills. 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 Commissioner of the Revenue at (540)665-5681. When you display your Frederick County decal and pay your taxes on qualified vehicles, you are certifying to County of Frederick that your vehicle has been qualified correctly.
