Personal property taxes, also known as car taxes, are due today in Alexandria, and new penalties make late payments pricey.
City Council approved City Manager Jim Parajon’s proposal in the spring to increase the late payment penalty from a flat rate of:
- 10% to a rate of 10% if paid within 30 days
- 25% if the payment is made after 30 days
Late payments are capped by the total amount of tax billed.
The city’s personal property tax rate is $5.33 per $100 of the assessed value of vehicles, and $3.55 for vehicles retrofitted to accommodate disabled drivers.
Payments can be made on the city’s website.
Below are exemptions from the car tax, according to the city:
The following persons are fully or partially exempted from paying the personal property tax but must still register their vehicles, and file the annual filing by exception letter (FBE):
- Antique vehicles, as defined in Section 46.2-100 of the Code of Virginia, are exempt from taxation per Section 3-2-231(8) of the City Code. Antique motor vehicles “may not be used for general transportation purposes” and must be tagged as antiques or vintage vehicles by the Virginia DMV. Per state law, “antique motor vehicle means every motor vehicle, as defined in this section, which was actually manufactured or designated by the manufacturer as a model manufactured in a calendar year not less than 25 years prior to January 1 of each calendar year and is owned solely as a collector’s item.”
- Military personnel who are on extended active duty and who are not residents of Virginia, if the vehicle is owned (not leased) by and registered solely in the name of the active duty person, are exempt from both the local registration fee and personal property tax. Military personnel who are on active duty and are residents of Virginia are exempt from the local registration fee but not the personal property tax.
- The spouse of an active duty military member is exempt from the personal property tax on a vehicle owned solely or jointly with the military member if the service member is exempt. Vehicles co-owned with other family members or non-related persons will not qualify for the exemption.
- Certain Members of Congress and their spouse; Pursuant to Federal law (4 U.S.C. Chapter 4; PL 99-190): “No State, or political subdivision thereof, in which a Member of Congress maintains a place of abode for purposes of attending sessions of Congress may impose a personal property tax with respect to any motor vehicle owned by such Member (or by the spouse of such Member) unless such Member represents such State or a district in such State.” Members representing the Commonwealth of Virginia, or districts within the Commonwealth, are not exempt from the personal property tax, and are subject to Virginia tax law.
- Recognized foreign diplomats and their immediate families are exempt from both the local registration fee and personal property tax.
- Disabled American veterans whose vehicles display current Virginia disabled veteran license plates are exempt from the local registration fee but not the personal property tax.
- Members of the Virginia National Guard whose vehicles display current Virginia National Guard license plates pay only half the local registration fee but are not exempt from the personal property tax.
NOTE: The following property is not eligible for this exemption and is therefore fully taxable:
- Leased vehicles (other than those taxed in other Virginia jurisdictions or states);
- Property used in a trade or business; and
- Property co-owned with any person who does not qualify for tax exemption
