Personal Property Tax

Personal Property Tax is responsible for the assessment of all vehicles (cars, trucks, buses, motorcycles, boats, and motor homes) that are located in the City of Alexandria.

• General Information 
• Registering for Personal Property Tax
• Exempt Taxpayers 
• Documentation Required for Exemption 
• How Taxes and Fees Are Calculated 
• Assessments and Appeals
  • How Vehicles Are Assessed 
  • Appealing an Assessment 
• Personal Property Tax Relief 
• Adjusting and/or Closing a Personal Property Tax Account 
• Billing and Payment 
• Other Resources
  • Personal Property Tax Relief for the Elderly and Disabled 
  • Residential Parking Permit Facts 
  • How to Pay Taxes and Parking Tickets 
  • Tax Services & Enforcement Branch (Delinquent Tax Collections)
  • Virginia Department of Motor Vehicles 
• Frequently Asked Questions 
• Contact Us 

General Information

Personal Property Taxes:  All motor vehicles parked, stored or garaged (having situs) in the City of Alexandria, including vehicles with out-of-state plates, must be registered for the City's annual personal property tax.  All motor vehicles, such as trailers, registered to a City address with the Virginia Department of Motor Vehicles must also be registered with the City.  Personal property taxes are assessed based on the calendar year or any portion of the year during which a vehicle is liable for the tax.  Annual personal property tax bills (including both the City decal and residential parking permit fees) are mailed in August with a due date of October 5. (“Motor vehicles” include all automobiles, trucks, taxicabs, motor vehicles with specially designed equipment for disabled persons, motorcycles, boats, trailers, campers, and other recreational vehicles.)

NOTE: Titling and registering your vehicle with the Virginia Department of Motor Vehicles (DMV) does not automatically register the vehicle with the City of Alexandria.

City Decal:  Any person who must register a vehicle for personal property tax must also purchase and display a City decal as proof of registration with the City and payment of Personal Property Tax.  The City Decal expires annually on October 5 and must be removed and replaced by November 15.  For information on advance decals mailed with the annual bill or other questions related to obtaining a City decal, please contact the Treasury Division.

Residential Parking Permits:  Residents of residential permit parking districts must also purchase and display a residential parking permit.   Please see Residential Parking Permit Program Facts for more information on the residential parking permit program or to contact the City's Treasury Division.

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Registering for Personal Property Tax

All residents of the City of Alexandria must register within 30 days of moving into the City or purchasing a vehicle in the City.  You may register your vehicle by:

• Completing the online registration form;
• Bringing your valid state registration card, vehicle title or bill of sale, and your driver’s license to our office at 301 King Street, Room 1700, 8 a.m. to 5 p.m., Monday through Friday, except City holidays; or
• Printing the registration form and mailing it with a copy of your valid state registration card, a copy of the vehicle title or bill of sale, and payment for the City Decal to Treasury Division, PO Box 323, Alexandria, VA  22313.

NOTE: To register a vehicle on someone else’s behalf, you must have a signed, notarized statement from the vehicle owner(s) explicitly authorizing you to register their vehicle with the City.

Upon receiving your information, staff will register your vehicle and mail a bill for any taxes and/or fees that may be immediately due.  (For more information, please see Billing and Payment below.)

Penalties and Fines

• Any person who fails to register for personal property tax within 120 days is subject to a late filing penalty.  The penalty is 5% of the tax due or $10 (whichever is greater), not to exceed the original tax amount due.
• The owner of any vehicle parked, stored or garaged in the City that does not display a valid City decal is subject to a $40 fine for each violation of Alexandria’s tax ordinances.  Alexandria police and parking enforcement officers may issue tickets on public property or on private property (including parking lots) with the consent of the property owner.  Alexandria has reciprocal enforcement agreements with other localities that enable officers in each participating locality to issue tickets for violations of the other localities’ tax ordinances.

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Exemptions from the Personal Property Tax

The following persons are fully or partially exempted from paying the personal property tax and decal fee but must still register their vehicles, file the annual filing by exception letter (FBE), and display valid decals:

• Military personnel who are on extended active duty and who are not residents of Virginia, if the vehicle is owned (not leased) by and registered solely in the name of the active duty person, are exempt from both the decal fee and personal property tax.  Military personnel who are on active duty and are residents of Virginia are exempt from the decal fee but not the personal property tax.
• Vehicles owned by or co-owned with the spouses of military personnel on extended active duty who are not residents of Virginia.  The vehicle must be solely registered to the spouse or co-registered to the spouse and the active duty military member.  Vehicles co-owned with other family members or non-related persons will not qualify for the exemption.
• Members of the United States Congress and their spouses are exempt from both the decal fee and personal property tax.
• Recognized foreign diplomats and their immediate families are exempt from both the decal fee and personal property tax.
• Disabled American veterans whose vehicles display current Virginia disabled veteran license plates are exempt from the decal fee but not the personal property tax.
• Members of the Virginia National Guard whose vehicles display current Virginia National Guard license plates pay only half the decal fee but are not exempt from the personal property tax.

Please note that the following property is not eligible for this exemption and is therefore fully taxable.

• Leased vehicles;
• Property used in a trade or business; and
• Property co-owned with any person who does not qualify for tax exemption.

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Documentation Required for Exemption

In some cases, in order to receive the relevant personal property tax and/or decal fee exemption, you must provide staff with documentation of your tax exempt status.  The type of documentation required depends upon the category of exemption requested.

For vehicles owned solely by active duty military members, please provide:

• A copy of the member's military identification card; and
• A copy of the current Leave and Earning Statement (LES)

For vehicles owned or co-owned by the spouse of an active duty military member, please provide:

• A copy of the member's military identification card;
• A copy of the member's current LES;
• A copy of either the marriage certificate or the spouse's military dependent identification card ; and
• A completed City of Alexandria Military Spouse Residency Relief Form: Certification of Legal Residence (Domicile);

For vehicles owned by recognized foreign diplomats and their immediate families, please provide:

• A copy of your Personal Identification Card issued by the United States Department of State;

Other types of exemption are validated through Virginia DMV records and/or information provided by the US Congress.

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How Taxes Are Calculated

Personal Property Tax:  The Personal Property Tax rate is $4.75 per $100 (4.75%) of the assessed value of the vehicle ($3.55 for vehicles with specially-designed equipment for disabled persons). 

• If a vehicle is subject to the taxes in Alexandria for a full calendar year, the tax amount is determined by multiplying the tax rate by the assessed value.
• If a vehicle is subject to the taxes in Alexandria for less than a full calendar year, the assessed value is prorated for the number of months the vehicle is subject to taxes. The vehicle is subject to tax for a full month if it is parked, stored or garaged in the City of Alexandria for 15 or more days of the month. The tax amount is then determined by multiplying the tax rate by the prorated assessed value.
• If the current owner of the vehicle paid taxes during the same tax year to a non-prorating jurisdiction in Virginia, the City will relieve the personal property taxes assessed upon receipt of proof of taxes paid to the non-prorating jurisdiction. 
• If the City is notified that a vehicle is moved out of the City or disposed of, the City will adjust the personal property tax assessment accordingly.

NOTE:  Vehicles subject to Personal Property Tax may also qualify for Personal Property Tax Relief (PPTRA), which covers a percentage of the personal property taxes due on the first $20,000 in assessed value for personal vehicles.  This percentage is subject to change each year.

(For more information on vehicle assessments and PPTRA, see below.)

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City Decal Fee 

Privately Owned Vehicles:

	Automobiles and Motor Homes		$33.00
	Motorcycles		$21.00
	Trailers:
		Boat and Utility	$14.50
		Camping and Travel	$23.00
		Semi-trailer for vehicle weighing:     Less than 1,501 lbs.  1,501 to 4,001 lbs. 4,001 lbs. or more	$18 $28.50 $40
	Buses:
		Private buses for 10 or more passengers, including the driver. Private school bus used solely for transportation to and from Sunday school or church	$.30 per 100 pounds of weight, but not less than $23.00 $23.00 under 4,000 pounds $28.00 over 4,000 pounds

Business owned (decal fee is based on vehicle gross weight):

	Under 4,000 lbs.	$33.00
	4,001 - 10,000	$38.00
	10,001 - 12,000	$43.00
	12,001 - 15,000	$48.00
	15,001 - 18,000	$53.00
	18,001-20,000	$58.00
	20,001-22,000	$63.00
	22,001-24,000	$68.00
	24,001-26,000	$73.00
	26,001-40,000	$83.00
	40,000 and above	$98.00

For Hire (decal fee is based on vehicle gross weight):

	Under 4,000 lbs.	$23.00
	4,000 and above	$28.00

Fully or Partially Exempt Taxpayers:

	Military (Non-Taxable), Foreign Military, Foreign Diplomats, Congresspersons, Disabled Veterans and P.O.W.'s	$0.00
	National Guard	$16.50

Decal Transfers

To transfer a decal, you must remove the decal from the vehicle and return it to the City.  If a vehicle has been traded and the decal destroyed, you must provide a letter confirming the destruction of the decal from the dealership.

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 Assessments and Appeals

How Vehicles are Assessed:  The assessed value is the fair market value of the vehicle as published in nationally recognized pricing guides.  The City primarily uses the clean trade-in value (as of January 1 of the tax year) found in the National Automobile Dealers Association (NADA) Official Used Car Guide.  If a vehicle is not listed in the NADA guides, the City uses the Cars of Particular Interest Guide or another recognized pricing guide.  The City assesses vehicles not listed in any recognized pricing guide at fair market values.  For new vehicles, the City uses 95% of the manufacturer’s suggested retail price.

Appealing an Assessment:  The City assesses personal property on the assumption that it is in fair condition for its age.  If your vehicle is not in fair condition because of high mileage, extensive body or interior damage or serious mechanical malfunctions, you may appeal the assessment.  Each appeal must be received by December 31 of the tax year to which it applies.  Appeals are considered in the order they are received and may take 60 days or more to be completed.  If the appeal is not answered by October 5 of the tax year, the tax amount originally assessed is still due.  If the assessment is later reduced as a result of the appeal, the City will issue a refund.

Appeals for Damage or Malfunction:  You may submit an appeal by having a mechanic complete the appeal form and returning it by mail or in person.

Appeals for High Mileage:  You should submit documentation dated prior to March 31 of the applicable tax year.  The documentation provided must shows both the VIN number and mileage of the vehicle.  Accepted documentation includes:

• Inspection receipt
• Mechanic's official receipt for work performed
• Dealer's official receipt for work performed

Submit Appeal in Person or by Mail:

In person:

Tax Services
301 King Street, Room 1700
Alexandria, VA  22314

By mail: 

Revenue Division
Department of Finance
City of Alexandria
PO Box 178
Alexandria, VA 22313

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Personal Property Tax Relief (PPTRA)

Through the Personal Property Tax Relief Act of 1998 (PPTRA), the Commonwealth of Virginia grants partial relief of the personal property tax levied on the first $20,000 of the assessed value for qualifying vehicles.  In 2004, the General Assembly passed legislation capping PPTRA relief at $950 million for the entire State, beginning with the year 2006.  The legislation also ended reimbursement for prior year taxes on September 1, 2006, and authorized the City to remove the State credit and bill vehicle owners for the entire tax.

Each locality must annually recalculate relief to equitably distribute the locality’s PPTRA reimbursement from the State.  For 2010, owners of qualifying vehicles in Alexandria will receive Personal Property Tax Relief equaling 69 percent of the tax levied on the first $20,000 of assessed value.  Qualifying vehicles assessed at $1,000 or less will receive 100% relief.  To calculate car tax relief, multiply the vehicle’s value or $20,000 (whichever is less) by the tax rate of 4.75 percent and then by the PPTRA rate of 69 percent.  

Example: The owner of a qualifying vehicle assessed at $20,000 will receive $655.50 in relief for 2010.  ($20,000 X 4.75% X 69% = $655.50)

To qualify, a vehicle must:

• Have a registered gross weight less than 7,501 pounds;
• Be owned by an individual or leased by an individual under a contract requiring the individual to pay the personal property tax; and
• Be used less than 50% for business purposes.  

Motor homes, trailers and farm use vehicles do not qualify for tax relief.

Does your vehicle qualify for car tax relief?

If you can answer YES to any of the following questions, your motor vehicle is considered by State law to have a business use and does NOT qualify for car tax relief.

• Is more than 50% of the mileage for the year used as a business expense for Federal Income Tax purposes or reimbursed by an employer?
• Is more than 50% of the depreciation associated with the vehicle deducted as a business expense for Federal Income Tax purposes?
• Is the cost of the vehicle expensed pursuant to Section 179 of the Internal Revenue Service Code?
• Is the vehicle leased by an individual and the leasing company pays the tax without reimbursement form the individual?

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Adjusting and/or Closing a Personal Property Tax Account

NOTE:  All changes to vehicle status (purchases, trades, moves, sales, donations, etc.) should be reported to the City of Alexandria within 30 days and promptly reported to the Virginia DMV. 

Moving within or out of the City

If you have moved within the City of Alexandria, report your change of address to:

Personal Property Tax
301 King Street, Room 1700
Alexandria, VA 22314
703.746.3995
Email:  

If you have moved out of the City, you must:

• Remove the decal from the vehicle and return it to the City.
• Fill out and submit a completed disposition form.
• Provide proof of personal property tax registration with another jurisdiction or a copy of your new state registration card.

Disposing of a Vehicle

In the event that the vehicle you currently have registered is traded, sold, donated, stolen or totaled, you must:

• Remove the decal from the vehicle and return it to the City.
• Fill out and submit a completed disposition form.
• Provide documentation of the change in status.

Documentation accepted by the City of Alexandria includes:

• Trades:  A copy of the buyer’s order.
• Sales:  A copy of the bill of sale.
• Donations:  A copy of your donation receipt.
• Stolen Vehicles:  The case number from the jurisdiction where the vehicle was stolen.
• Totaled or Destroyed Vehicles: Statement of loss from your insurance company.

NOTE: A temporary absence from the City does not exonerate you from paying the taxes.

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Billing and Payment 

Annual Billing:  In the second week of August or later each year, the City mails personal property tax bills for all vehicles registered prior to July 15.  Owners of not-for-hire automobiles who have no delinquent tax balance will receive their new City decal and residential parking permit (if applicable) with their bill.  Taxpayers with delinquent balances and owners of for-hire vehicles, motorcycles, trailers, motor homes, etc. must pay all taxes, penalties and interest due to receive the City decal and residential parking permit.  All taxes assessed for the current calendar year (January 1 to December 31) as of this billing are due October 5.

Billing Upon Registration:  Upon registering vehicles newly purchased or newly moved into the City, staff will mail a bill for the City decal, residential parking permit (if applicable) and any personal property taxes that may be due as of the billing.  Bills mailed upon registration must be paid within 30 days.

• If the vehicle is registered between January 1 and September 5, personal property taxes for the current calendar year are due October 5.  (If any prior year taxes are due, they must be paid within 30 days.)  The City decal fee and parking permit fee are due within 30 days.  If a late filing penalty has been applied, all taxes and fees must be paid before a decal and/or parking permit will be issues. 
• If the vehicle is registered between September 6 and December 31,  both current year and any prior year personal property taxes, the City decal fee and the parking permit fee are due within 30 days.  (Vehicles registered at this time that were moved in or purchased between December 16 and December 31 will owe no current year taxes and will be billed for the decal fee and parking permit fee only.) 

NOTE:  If you do not receive the bill by mail, you must contact Personal Property Tax at 703.746.3995 or the Treasury Division at 703.746.3902.  Failure to receive the bill will not relieve you of the obligation to file and pay taxes by the due date. 

Payments

The City of Alexandria offers a variety of payment options.  If you are delinquent on your taxes and believe you may need a payment plan, please see Tax Services & Enforcement. 

Penalties for Late Payment 

• A late payment penalty of $10 or 10 percent of the tax billed to the taxpayer, whichever is greater, will be assessed for failure to pay any personal property tax by the due date. No penalty may exceed the amount of the tax billed.
• Interest on all delinquent taxes accrues at an annual rate of ten percent the first year, and five percent each year thereafter, until all taxes and penalties are paid.
• The City will assess a $45.00 administrative fee on all delinquent personal property tax accounts. The $45 administrative fee is applied towards processing costs incurred in the collection of delinquent taxes. 

For more information on payment plans, penalties, interest, administrative fees and delinquent tax collections, please visit the Tax Services & Enforcement web page or contact: 

Tax Services & Enforcement
301 King St., Room 1700
Alexandria, VA 22314
703.746.3909
Email:  

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