A city taxed my personal car and my new travel trailer -- can I appeal either one to the Virginia Department of Taxation?

Plain-English summary

A city assessed an individual for 2024 local tangible personal property tax on two items he purchased that year: a personal vehicle and a travel trailer. He applied to the Department of Taxation for correction, arguing the assessment was too high. The Tax Commissioner issued this Notice of Jurisdiction addressing each item separately -- and could rule on neither.

The personal vehicle: no Department jurisdiction, period. Va. Code § 58.1-3983.1 D limits the Department's jurisdiction over local-tax appeals to final local determinations involving local business tax and local mobile property tax (citing P.D. 17-142 and P.D. 18-205). Tangible personal property tax on an individual's personal vehicle -- the everyday "car tax" -- is neither of those. The Department simply has no authority to hear this part of the appeal at all; the taxpayer's options are the city's own procedures (many localities have their own reassessment or appeal processes) or, ultimately, the courts.

The travel trailer: a genuinely different category, but still not appealable yet. Unlike a personal vehicle, a trailer falls squarely within Virginia's statutory definition of "local mobile property tax" -- Va. Code § 58.1-3983.1 defines that category to include tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers. So the Department genuinely can have jurisdiction over a trailer-tax dispute. Two limits apply even then: (1) the Department is never permitted to decide questions of valuation or the method of valuation used to assess mobile property (§ 58.1-3983.1 D 5) -- only other legal questions; and (2) before the Department can hear anything, the taxpayer must first file a proper local appeal with the city under § 58.1-3983.1 B and the Guidelines for Appealing Local Mobile Property Taxes (P.D. 05-81), get a final local determination, and then appeal to the Department within 90 days (or, if the local appeal has been pending over a year, appeal after giving the city 30 days' written notice).

Why the trailer dispute couldn't proceed either. There was no indication the taxpayer had filed any local appeal with the city on the trailer assessment. Without that threshold step, the Department can't yet accept jurisdiction over the trailer dispute -- even though trailers are, categorically, the kind of property the Department CAN eventually review.

What's left. The Department told the taxpayer: for the vehicle, contact the city directly (there's no path to the Department at all); for the trailer, file a local appeal with the city first, and only come to the Department -- within 90 days of the city's final determination -- if he still disagrees on something other than valuation.

What this means for you

Individuals disputing their personal vehicle (car) tax

Don't bring this to the Virginia Department of Taxation -- it has no jurisdiction over personal-vehicle property tax appeals at all. Go directly to your locality's own reassessment or appeal process, or ultimately circuit court.

Owners of boats, campers, RVs, trailers, or airplanes disputing local property tax on those items

These fall under "local mobile property tax," which the Department CAN review -- but only after you've filed a proper written local appeal and received a final local determination from your locality. Skipping that step (as happened here) means the Department can't help yet, no matter how strong your substantive argument is.

Anyone whose dispute is really about how much their property is worth

Even for mobile property that IS within the Department's jurisdiction, valuation and valuation-method disputes are off the table entirely -- the Department will not weigh in on whether your trailer, boat, or RV was assessed at the right dollar value.

Common questions

Q: Can I appeal my personal car's property tax assessment to the Virginia Department of Taxation?
A: No. The Department's jurisdiction over local property tax appeals covers only local business tax and local mobile property tax -- an individual's personal vehicle is neither.

Q: Is a travel trailer treated the same way as a personal car for this purpose?
A: No. Trailers (along with airplanes, boats, campers, and recreational vehicles) are specifically defined as "local mobile property," which the Department can review -- but only after a proper local appeal and final determination, and never on valuation.

Q: I disagree with how my locality valued my mobile property (boat, RV, trailer) -- can the Department fix that?
A: No. The Department is barred from deciding valuation or valuation-method questions for local mobile property tax, even when it otherwise has jurisdiction.

Citations and references

Statutes:

• Va. Code § 58.1-3983.1 D -- the Department's jurisdiction over local-tax appeals is limited to final local determinations on local business and mobile property tax assessments
• Va. Code § 58.1-3983.1 -- local mobile property tax covers tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers
• Va. Code § 58.1-3983.1 D 5 -- the Department cannot rule on valuation or the method of valuation used in a local mobile property tax assessment
• Va. Code § 58.1-3983.1 B 1 and B 6 -- local mobile property tax appeal (one year to appeal locally; 90 days to appeal a final local determination to the Department, or after the local appeal has been pending over a year with 30 days' notice)

Authorities the Department relied on (described here, not linked): P.D. 17-142 (8/7/2017) and P.D. 18-205 (12/10/2018) (personal-vehicle tax is neither business nor mobile property tax, so the Department lacks jurisdiction); the Guidelines for Appealing Local Mobile Property Taxes, P.D. 05-81 (6/9/2005). A closely related ruling, P.D. 26-20, addresses the same personal-vehicle jurisdiction bar in isolation (a stolen-vehicle case); this ruling adds the mobile-property-tax half of the analysis for a trailer purchased alongside the vehicle.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 24-114

Original ruling text

November 14, 2024

Re: Notice of Jurisdiction

Taxpayer: *

Locality Assessing Tax: City of *

Local Tangible Personal Property Tax

Dear *:

This notice of jurisdiction is issued upon the application for correction filed by * (the “Taxpayer”) with the Department. The Taxpayer appeals the assessment of tangible personal property tax by the City of *** (the “City”) for the 2024 tax year.

The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections cited are available online at law.lis.virginia.gov. The public documents cited are available at tax.virginia.gov in the Laws, Rules, & Decisions section of the Department’s website.

FACTS

The Taxpayer received an assessment of tangible personal property tax for the 2024 tax year on a personal vehicle and a travel trailer he purchased in 2024. The Taxpayer filed an application for correction with the Department, contending that the assessment was too high.

ANALYSIS

Personal Vehicle

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 tax assessed against an individual’s personal vehicle.

Trailer

Although the Department does not have jurisdiction over cases involving local tangible personal property tax on personal vehicles, it does retain jurisdiction over cases involving “local mobile property tax,” defined under Virginia Code § 58.1-3983.1 as the tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers. The Department is prohibited, however, from making determinations regarding the valuation or method of valuation used in assessing local mobile property tax. See Virginia Code § 58.1-3983.1 D 5.

A taxpayer assessed with local mobile property tax may appeal such assessment within one year from the last day of the tax year for which such assessment is made, or within one year from the date of the assessment, whichever is later, to the commissioner of the revenue or other local assessing official. See Virginia Code § 58.1-3983.1 B 1. If a taxpayer wishes to appeal an assessment from a locality to the Department, they must first file a local administrative appeal pursuant to the process set forth in Virginia Code § 58.1-3983.1 B. Once a proper local appeal has been filed, the locality must undertake a full review of the taxpayer’s claims and issue a written determination setting forth the facts and analysis in support of the locality’s decision. Pursuant to Virginia Code § 58.1-3983.1 D, only when a final local determination has been issued can a taxpayer file an administrative appeal with the Department if they wish to contest any of the locality’s conclusions. Alternatively, a taxpayer may file an appeal with the Department if their appeal with the locality has been pending for more than one year and they provide the locality with at least 30 days written notice. See Virginia Code § 58.1-3983.1 B 6.

Virginia Code § 58.1-3983.1 B and the Guidelines for Appealing Local Mobile Property Taxes (the “Guidelines”), issued as Public Document (P.D.) 05-81 (6/9/2005), provide taxpayers further information regarding the procedures for appealing local mobile property tax assessments. In this case, there is no indication that the Taxpayer filed a local appeal with the City.

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 Department understands that many localities set forth procedures for appealing an assessment, or requesting a reassessment, of property tax on a personal vehicle. The Department recommends visiting the City’s website or contacting them directly for further information.

In addition, before the Taxpayer has a right to appeal to the Department with respect to the assessment on the travel trailer, the Taxpayer must first file an appeal with the City pursuant to Virginia Code § 58.1-3983.1 and the Guidelines. Should the Taxpayer do so, the City must issue a final local determination in accordance with the same. Once a final local determination is issued, the Taxpayer will have 90 days to file an appeal with the Department if he disagrees with the outcome. If the case has been pending with the City for more than one year, the Taxpayer may also appeal to the Department after giving the City the requisite notice. The Department, however, would decline to issue a determination if the matter only involved valuation of the property.

If you have any questions regarding this notice of jurisdiction, you may contact * in the Office of Tax Policy, Appeals and Rulings, at (804) or **@tax.virginia.gov.

Sincerely,

James J. Alex

Tax Commissioner

Commonwealth of Virginia

Related Documents

05-81

04-28

17-142

18-205