The 1998 Virginia General Assembly passed legislation to phase out the payment of personal property taxes by individuals on certain motor vehicles. The State’s “No Car Tax Program” has been eliminated as of September 1, 2006.
A new program was implemented by the State as of January 1, 2006. The personal property tax relief program is no longer intended to eliminate the personal property tax, but rather provide a reduction to the taxpayer. Your tax bill will be reduced by a percentage which will be determined annually. The relief now represents an annual block grant from the Commonwealth of Virginia.