Can I appeal my county's tangible personal property tax assessment on my personal car to the Virginia Department of Taxation if I think the value is too high?

Plain-English summary

This is a near-identical companion to P.D. 22-147, issued the same day and addressing the same jurisdictional gap. Here, a single taxpayer -- rather than a married couple -- appealed a county's 2022 tangible personal property tax assessment on personal vehicles to the Virginia Department of Taxation, contending that one vehicle's value was overstated. As in the companion ruling, the Department found it had no authority to review the dispute at all, regardless of whether the valuation was actually wrong.

The Department's jurisdiction to hear local tax appeals is limited by statute to local business tax assessments and mobile property tax assessments (things like machinery and tools, or business tangible personal property used in a trade or business). An individual's personal vehicle tax bill -- the ordinary car tax most Virginia households pay -- isn't a business tax or mobile property tax, so it doesn't fall within the categories the Department is permitted to review.

Because it lacked jurisdiction, the Department couldn't weigh in on whether the county's valuation of the vehicle was correct. It instead pointed the taxpayer to the two available paths: applying directly to the locality for a correction under Va. Code § 58.1-3980, or, if unresolved, appealing to circuit court under Va. Code § 58.1-3984.

What this means for you

Individuals disputing their personal car's tax value

Don't send your appeal to the Virginia Department of Taxation -- it has no authority over personal vehicle property tax valuations. Take it up directly with your locality's Commissioner of the Revenue (or equivalent local assessing official) under Va. Code § 58.1-3980, and if you're still unsatisfied, you can escalate to circuit court under Va. Code § 58.1-3984.

Business owners wondering whether this limitation also applies to business vehicles or equipment

No -- the Department's jurisdiction covers local business tax assessments and mobile property tax (for example, machinery and tools, or business tangible personal property used in a trade or business). This ruling, like its companion P.D. 22-147 issued the same day, addresses only personal, non-business vehicles owned by individuals.

Common questions

Q: Why can't the state Department of Taxation review my county's car tax valuation?
A: By statute, the Department's authority over local tax appeals only covers local business tax and mobile property tax assessments. An individual's personal vehicle tax doesn't fall into either category, so the Department has no jurisdiction to hear the dispute regardless of its merits.

Q: Where should I actually take a dispute over my personal vehicle's assessed value?
A: First, apply to your locality (the Commissioner of the Revenue or other local assessing official) for a correction under Va. Code § 58.1-3980. If you remain dissatisfied with the outcome, you can pursue the matter in circuit court under Va. Code § 58.1-3984.

Q: Is this the only ruling saying this, or does the Department treat this consistently?
A: The Department issued a nearly identical ruling, P.D. 22-147, the same day for a different taxpayer's personal vehicle tax dispute with a different locality -- confirming this is a consistent jurisdictional rule, not a one-off outcome tied to unusual facts.

Citations and references

• Va. Code § 58.1-3983.1(D) (Department's jurisdiction limited to local business and mobile property tax assessments)
• Va. Code § 58.1-3980 (local correction request procedure)
• Va. Code § 58.1-3984 (circuit court appeal of local tax assessments)
• P.D. 17-142 (8/7/2017) and P.D. 18-205 (12/10/2018) (Department's jurisdiction doesn't extend to personal, non-business property tax assessments)

Subject

Administration: Appeal - Lack of Jurisdiction for Tax on Personal Vehicles

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 22-148

Original ruling text

October 7, 2022

Re: Notice of Jurisdiction

Taxpayers: *

Locality Assessing Tax: *

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 issued by * (the “County”) for the 2022 tax year.

The following determination is based on the facts presented to the Department summarized below. The Code of Virginia sections and public documents cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department’s web site.

FACTS

The County issued an assessment of tangible personal property tax on the Taxpayer’s personal vehicles for the 2022 tax year. The Taxpayer appealed to the Department, contending the value of one of the vehicles was overstated.

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) and P.D. 18-205 (12/10/2018). Neither business nor mobile property taxes include tangible personal property taxes assessed against individuals’ personal vehicles.

CONCLUSION

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 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.

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

Sincerely,

Craig M. Burns

Tax Commissioner

AR/4216.X

Related Documents

17-142

18-205