Personal Property in Botetourt may or may not cost you more this fall

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Get ready to write a bigger check when your personal property taxes are due this fall.

The money the county receives from the state to pay for vehicle tax relief, called Personal Property Tax Relief Act, was capped in 2005. That remains the same – $3.4 million block grant from the state. However, the county’s population continues to grow, and this year used cars have been valued high due to demand.

That means the portion of the personal property tax owners must pay likely would be higher.

The county has dropped another $250,000 into the pot to help offset expenses, bringing the personal property tax relief for this year to $3.65 million. This is a one-time deal. Supervisor Chairman Dick Bailey said the Supervisors were providing some relief to help out during difficult times with this monetary assistance.

He noted the County has stepped up in recent years by providing $2.3 million in a one-time real estate tax relief assistance in 2020 during the pandemic. In 2021, the county provided $264,000 to 82 businesses impacted by the pandemic, and in 2022 provided $157,000 to local farmers who were similarly impacted.

Finance Manager Tony Zerilla said the state block grant and the additional funding from the county would pay 39 percent of the valuation of a vehicle, while the owner would be responsible for the remaining 61 percent.

State legislation changed in 2005 so that essentially the 1998 Car Tax Program was terminated. The current reimbursement method has remained unchanged, with the $3.4 million divided among county residents. The result is that essentially the state pays less of each individual tax bill every year as the number of vehicles and vehicle values grows.

The supervisors are required to annually adopt a resolution setting the percentage reduction in personal property. The county currently charges $2.71 per $100 value on vehicles. That means a vehicle valued at $10,000 would pay $271.00. With the personal property tax relief, that means the owner of the $10,000 vehicle would pay $165.31 (61 percent) of the bill, with the state and county picking up the rest.

Vehicles valued at $1,000 or less would not be charged tax. Vehicles valued between $1,000 and $20,000 would receive state relief. Any valuation in excess of $20,000 would be taxed at full value. Overweight vehicles would not be eligible for state relief.

To qualify, vehicles must be owned or leased by an individual and cannot be used for more than 50 percent for business purposes.

                                                            — Anita Firebaugh, Special to The Botetourt Bee