TANGIBLE PERSONAL PROPERTY TAX FAQs
Automobiles, trucks, recreational vehicles, motorcycles, trailers, boats, airplanes, mobile homes, and business furniture, fixtures and equipment are examples of tangible personal property. Machinery and tools used in the manufacturing process are considered to be personal property, but are taxed at a different rate ($1.85 per $100 of assessed value.)
The Martinsville City Council establishes a personal property tax rate each year in June. The actual tax is then computed by multiplying the property's assessed value by this rate. The current rate for general personal property is $2.30 per $100 of assessed value of property. The current rate for machinery and tools is $1.85 per $100 of assessed value.
The Commonwealth of Virginia provides the City of Martinsville with $626,428 annually to disburse as Car Tax Relief to individuals with qualifying vehicles. If you have a qualifying vehicle your tax assessment will be reduced by the annually calculated relief percentage. The relief percentage will vary annually depending on how many vehicles qualify for relief, the total amount of the assessments of these vehicles, the total number of vehicles assessed at $1000 or less, and the total assessment amount of vehicles with assessed values between $1,001 and $20,000.
The calculated percentage rate for relief for tax year 2021 is 41.28% for qualifying vehicles (see requirements below) with assessed values between $1,001 and $20,000.
No. Any personal property owned on January 1 is taxed for the entire calendar year.
Yes. Martinsville is not a prorating locality and any motor vehicle owned on January 1 is taxed for the entire year. However, if you moved from Martinsville prior to January 1 and you were taxed, you must submit documented proof that you were a domiciled resident of another locality or state on January 1 of the taxable year before any abatement of taxes can be done.
The Personal Property Tax Relief Act of 1998 provides tax relief for passenger cars, motorcycles, and pickup or panel trucks having a registered gross weight of less than 7,501 pounds. To qualify, a vehicle must:
Be owned by an individual or leased by an individual under a contract requiring the individual to pay the personal property tax; AND
Be used less than 50 percent for business purposes.
In addition, you must file and sign your blue tangible personal property form annually and return it to the Commissioner of the Revenue office by May 1st.
If you can answer YES to any of the following questions, your motor vehicle is considered by State Law to have a business use and does NOT qualify for Car Tax Relief:
Is more than 50 percent of the mileage for the year used as a business expense for Federal Income Tax purposes OR reimbursed by an employer?
Is more than 50 percent of the depreciation associated with the vehicle deducted as a business expense for Federal Income Tax purposes?
Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
Is the vehicle leased by an individual and the leasing company pays the tax without reimbursement from the individual?
The Commissioner of the Revenue is generally required to determine the assessed value of motor vehicles based on a recognized pricing guide, if available, or a percentage of original cost. The pricing publications used are the National Automobile Dealers Association (N.A.D.A.) official used car guide and the official older car guide. The value taken from these books is the average loan value. If the vehicle is not listed in the guide, the value will be assessed on a percentage of the purchase price or a percentage of the prior year's assessment.
f you feel your vehicle has been over assessed you can appeal the assessment. To appeal the assessment, you must bring the vehicle to the City Municipal Building so that the Commissioner can view the vehicle. If the vehicle is inoperable, you may schedule an appointment for the Commissioner to view it. To show that the vehicle's value is less than the average loan value established in the N.A.D.A. official used car guide please provide any of the following:
An independent appraisal from a reputable shop or repair facility.
A police report for incident causing damage.
A description of specific conditions that make your vehicle's value less than the average loan value listed in the National Automobile Dealers Association (NADA) guide. (For example body damage and missing engine.)
A service receipt dated within three (3) weeks of January 1st showing the vehicle mileage for a high mileage deduction. (To receive a high mileage deduction, you must provide mileage proof annually.)
The Commissioner of the Revenue may require additional information necessary to corroborate a taxpayer's claim or appeal.
Yes, all personal property is taxable, even unlicensed and/or inoperable vehicles. This property must be listed on your vehicle verification form and filed on or before May 1st each year for as long as you own it. However, you may appeal your assessment if the reason that the vehicle is unused and unregistered is the condition of the vehicle.
Personal property tax returns may be filed by mail to: Commissioner of the Revenue, P.O. Box 1222, Martinsville, VA 24114-1222, or in person at 55 W. Church Street in the office of the Commissioner of the Revenue. The office is located on the first floor of the Municipal Building in Room 101.