My city assessed excessive tangible personal property tax on my personal vehicle for 2024 -- can the state Department of Taxation review that?

Plain-English summary

A third near-identical companion to this corpus's P.D. 24-96-0 and P.D. 24-92-0, issued the same day. Here the taxing locality is a city rather than a county, and the tax year at issue is 2024 rather than 2023, but the legal analysis and outcome are identical: a taxpayer appealed a city's tangible personal property tax assessment on a personal vehicle, arguing the assessment was excessive.

Same jurisdictional bar, regardless of city or county. Va. Code § 58.1-3983.1 D limits the Department's local-tax appeal jurisdiction to local business tax and mobile property tax assessments -- a limitation that applies the same way whether the assessing locality is a city or a county. Personal (non-business) vehicle tax fits neither protected category, so the Department dismissed the appeal without reaching whether the assessment was actually excessive.

Where to go instead. The taxpayer may appeal directly to the city under Va. Code § 58.1-3980, or to the circuit court under Va. Code § 58.1-3984.

What this means for you

City residents (not just county residents) disputing personal vehicle tax

This jurisdictional bar applies identically whether your locality is a city or a county -- the Department cannot hear an appeal of personal vehicle tax value from either type of locality. Go straight to your city's or county's own appeal process, or to circuit court.

Common questions

Q: Does it matter whether my locality is a city or a county for purposes of appealing my car tax to the state?
A: No. The Department's lack of jurisdiction over personal vehicle tax assessments applies the same way regardless of whether the assessing locality is a city or a county.

Citations and references

Statutes:

• Va. Code § 58.1-3983.1 D -- Department jurisdiction over local tax appeals limited to final determinations on local business and mobile property tax assessments
• Va. Code § 58.1-3980 -- local application for correction of an assessment
• Va. Code § 58.1-3984 -- judicial application to the circuit court to correct a local assessment

Prior rulings the Department relied on (described here, not linked): P.D. 17-142 (8/7/2017), P.D. 18-205 (12/10/2018), and P.D. 22-147 (10/7/2022). This ruling is a near-identical companion to this corpus's P.D. 24-96-0 and P.D. 24-92-0, all three issued within days of each other and reaching the same jurisdictional conclusion for different taxpayers and localities.

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 24-94

Original ruling text

September 25, 2024

Re: Notice of Jurisdiction

Local Tangible Personal Property Tax

Dear *:

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

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

FACTS

The City issued an assessment of tangible personal property tax on the Taxpayer’s personal vehicle for the 2024 tax year. The Taxpayer appealed to the Department, asserting the assessment of the vehicle was excessive.

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), P.D. 18-205 (12/10/2018), and P.D. 22-147 (10/7/2022). Neither business nor mobile property taxes include tangible personal property taxes assessed against an individual’s personal vehicle.

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 consider an appeal. The Taxpayer 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.

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.

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

Sincerely,

James J. Alex

Tax Commissioner

Commonwealth of Virginia

AR/4994.Q

Related Documents

17-142

18-205

22-147