                                 CODE OF VIRGINIA

TANGIBLE PERSONAL PROPERTY TAX RELIEF; LOCAL TAX RATES ON VEHICLES QUALIFYING
FOR TANGIBLE PERSONAL PROPERTY TAX RELIEF (§ 58.1-3524)

A. For tax year 2006 and all tax years thereafter, counties, cities, and towns
shall be reimbursed by the Commonwealth for providing the required tangible
personal property tax relief as set forth herein.

B. For tax year 2006 and all tax years thereafter, the Commonwealth shall pay a
total of $950 million for each such tax year in reimbursements to localities for
providing the required tangible personal property tax relief on qualifying
vehicles in subsection C. No other amount shall be paid to counties, cities, and
towns for providing tangible personal property tax relief on qualifying
vehicles. Each county&#8217;s, city&#8217;s, or town&#8217;s share of the $950
million for each such tax year shall be determined pro rata based upon the
actual payments to such county, city, or town pursuant to this chapter for tax
year 2005 as compared to the actual payments to all counties, cities, and towns
pursuant to this chapter for tax year 2005, as certified in writing by the
Auditor of Public Accounts no later than March 1, 2006, to the Governor and to
the chairmen of the Senate Committee on Finance and Appropriations and the House
Committee on Appropriations. The amount reimbursed to a particular county, city,
or town for tax year 2006 for providing tangible personal property tax relief
shall be the same amount reimbursed to such county, city, or town for each
subsequent tax year.
			The reimbursement to each county, city, or town for tax year 2006 shall be
paid by the Commonwealth over the 12-month period beginning with the month of
July 2006 and ending with the month of June 2007, as provided in the general
appropriation act. For all tax years subsequent to tax year 2006, reimbursements
shall be paid over the same 12-month period. All reimbursement payments shall be
made by check issued by the State Treasurer to the respective treasurer of the
county, city, or town on warrant of the Comptroller.

C. For tax year 2006 and all tax years thereafter, each county, city, or town
that will receive a reimbursement from the Commonwealth pursuant to subsection B
shall provide tangible personal property tax relief on qualifying vehicles by
reducing its local tax rate on qualifying vehicles as follows:

   1. The local governing body of each county, city, or town shall fix or
   establish its tangible personal property tax rate for its general class of
   tangible personal property, which rate shall also be applied to that portion
   of the value of each qualifying vehicle that is in excess of $20,000.

   2. After fixing or establishing its tangible personal property tax rate for
   its general class of tangible personal property, the local governing body of
   the county, city, or town shall fix or establish one or more reduced tax rates
   (lower than the rate applied to the general class of tangible personal
   property) that shall be applied solely to that portion of the value of each
   qualifying vehicle that is not in excess of $20,000. No other tangible
   personal property tax rate shall be applied to that portion of the value of
   each qualifying vehicle that is not in excess of $20,000. Such reduced tax
   rate or rates shall be set at an effective tax rate or rates such that (i) the
   revenue to be received from such reduced tax rate or rates on that portion of
   the value of qualifying vehicles not in excess of $20,000 plus (ii) the
   revenue to be received on that portion of the value of qualifying vehicles in
   excess of $20,000 plus (iii) the Commonwealth&#8217;s reimbursement is
   approximately equal to the total revenue that would have been received by the
   county, city, or town from its tangible personal property tax had the tax rate
   for its general class of tangible personal property been applied to 100
   percent of the value of all qualifying vehicles.

   3. Notwithstanding the provisions of subdivisions 1 and 2, beginning with tax
   year 2016, each county, city, and town that receives reimbursement shall
   ensure that the reimbursement pays for all of the tax attributable to the
   first $20,000 of value on each qualifying vehicle leased by an active duty
   member of the United States military, his spouse, or both, pursuant to a
   contract requiring him, his spouse, or both to pay the tangible personal
   property tax on such vehicle. The provisions of this subdivision apply only to
   a vehicle that would not be taxed in Virginia if the vehicle were owned by
   such military member, his spouse, or both.

D. On or before the date the certified personal property tax book is required by
&#xA7; 58.1-3118 to be provided to the treasurer, the commissioner of the
revenue shall identify each qualifying vehicle and its value to the treasurer of
the locality.

E. The provisions of this section are mandatory for any county, city, or town
that will receive a reimbursement pursuant to subsection B.

HISTORY: 1998, Sp. Sess. I, c. 2; 2004, Sp. Sess. I, c. 1; 2015, c. 266.