Can I appeal my county's tangible personal property tax assessment on my personal car to the Virginia Department of Taxation if I think the value is too high?

Plain-English summary

A married couple thought their county had overvalued their personal vehicles for the 2022 tangible personal property tax and appealed directly to the Virginia Department of Taxation, expecting the state to review the county's valuation. The Department explained it had no authority to do so, on jurisdictional grounds that have nothing to do with whether the valuation was actually right or wrong.

Virginia law lets the Department hear appeals of local tax assessments, but only within a limited scope: local business tax assessments and mobile property tax assessments (things like machinery and tools, or business tangible personal property used in a trade or business). Tangible personal property tax assessed against an individual's personal vehicle -- the everyday car-tax bill most Virginia households get -- isn't a business tax or a mobile property tax under this framework, so it falls outside the categories the Department is allowed to review.

Because the Department simply lacks jurisdiction over this type of dispute, it couldn't rule on whether the county's valuation was too high one way or the other. Instead, it pointed the taxpayers toward the two paths that do exist for challenging a personal vehicle tax valuation: applying directly to the locality itself for a correction under Va. Code § 58.1-3980, or, if that doesn't resolve things, taking the matter to circuit court under Va. Code § 58.1-3984.

What this means for you

Individuals disputing their personal car's tax value

Don't send your appeal to the Virginia Department of Taxation -- it has no authority over personal vehicle property tax valuations. Take it up directly with your locality's Commissioner of the Revenue (or equivalent local assessing official) under Va. Code § 58.1-3980, and if you're still unsatisfied, you can escalate to circuit court under Va. Code § 58.1-3984.

Business owners wondering whether this limitation also applies to business vehicles or equipment

No -- the Department's jurisdiction covers local business tax assessments and mobile property tax (for example, machinery and tools, or business tangible personal property used in a trade or business). This ruling addresses only personal, non-business vehicles owned by individuals.

Common questions

Q: Why can't the state Department of Taxation review my county's car tax valuation?
A: By statute, the Department's authority over local tax appeals only covers local business tax and mobile property tax assessments. An individual's personal vehicle tax doesn't fall into either category, so the Department has no jurisdiction to hear the dispute regardless of its merits.

Q: Where should I actually take a dispute over my personal vehicle's assessed value?
A: First, apply to your locality (the Commissioner of the Revenue or other local assessing official) for a correction under Va. Code § 58.1-3980. If you remain dissatisfied with the outcome, you can pursue the matter in circuit court under Va. Code § 58.1-3984.

Q: Does this mean the Department never has any role in local vehicle tax matters?
A: This ruling addresses jurisdiction over a valuation dispute specifically. Business-related mobile property and local business tax assessments remain within the Department's appellate jurisdiction; ordinary personal vehicle tax valuation disputes are not.

Citations and references

• Va. Code § 58.1-3983.1(D) (Department's jurisdiction limited to local business and mobile property tax assessments)
• Va. Code § 58.1-3980 (local correction request procedure)
• Va. Code § 58.1-3984 (circuit court appeal of local tax assessments)
• P.D. 17-142 (8/7/2017) and P.D. 18-205 (12/10/2018) (Department's jurisdiction doesn't extend to personal, non-business property tax assessments)

Subject

Administration: Appeal - Lack of Jurisdiction for Tax on Personal Vehicles

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 22-147

Original ruling text

October 7, 2022

Re: Notice of Jurisdiction

Taxpayer: *

Locality Assessing Tax: *

Local Tangible Personal Property Tax

Dear *:

This notice of jurisdiction is issued upon the application for correction filed by you (the “Taxpayers”) with the Department. The Taxpayers appeal the assessment of tangible personal property tax by * (the “County”) for the 2022 tax year.

The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections and public documents cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department’s web site.

FACTS

The County issued an assessment of tangible personal property tax on the Taxpayers’ personal vehicles for the 2022 tax year. The Taxpayers appealed to the Department, contending the value of their vehicles was overstated.

ANALYSIS

Under Virginia Code § 58.1-3983.1 D, the Department’s jurisdiction over appeals and rulings of local taxes is limited to final local determinations concerning local business and mobile property tax assessments. See Public Document (P.D.) 17-142 (8/7/2017) and P.D. 18-205 (12/10/2018). Neither business nor mobile property taxes include tangible personal property taxes assessed against individuals’ personal vehicles.

DETERMINATION

Based on applicable law, an assessment of tangible personal property tax on a personal vehicle is not an assessment of tax over which the Department has jurisdiction to hear an appeal. The Taxpayers may appeal an assessment of tangible personal property tax either directly to the locality pursuant to Virginia Code § 58.1-3980, or to the circuit court under the provisions of Virginia Code § 58.1-3984.

If you have any questions regarding this determination, you may contact * in the Office of Tax Policy, Appeals and Rulings, at ***.

Sincerely,

Craig M. Burns

Tax Commissioner

AR/4313.X

Related Documents

17-142

18-205