Own a Car Worth More Than $20K? Your Tax Bill Is Likely Going Up

Alexandrians owning cars valued at more than $20,000 are likely to see an increase in personal property tax bills mailed by the city this week while owners of vehicles valued at $20,000 or less may see a slight decrease.

Will this affect you?

The vehicle personal property tax has increased from $4.75 to $5 per $100 of assessed value. However, the city also changed the restructuring of how much tax relief vehicle owners are eligible for, depending on the value of their vehicle.

Under the new tiered system, qualifying vehicles assessed at $1,000 or less will continue to receive 100 percent relief. Qualifying vehicles assessed at $1,001 or more would receive the following personal property tax relief. The tax relief is prorated for vehicles owned for a part of the year.

Vehicles valued between $1,001 and $20,000 will receive tax relief of 61 percent on the total assessed value with a maximum relief of $610)

Vehicles valued between $20,001 and $25,000 will see tax relief of 50 percent on the first $20,000 of assessed value with a maximum relief of $500.

Vehicles valued at $25,001 and higher will receive tax relief of 40 percent on the first $20,000 of assessed value with a maximum relief of $400.

The city said in a news release that it expects the changes will have the following effects on residents’ 2013 tax bills: 

• The net tax due may remain the same, or decrease slightly, for most taxpayers with a qualifying vehicle valued at $20,000 or less, compared with 2012;
• Assuming a five percent reduction in a vehicle’s assessed value, the net tax due may increase by $79.50 for a qualifying vehicle valued between $20,001 and $25,000, compared with 2012; and
• Assuming a five percent reduction in a vehicle’s assessed value, the net tax due may increase by $179.50 for a qualifying vehicle valued at more than $25,000, compared with 2012.