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Personal Property Tax
The following questions and answers will provide the taxpayer with a basic understanding of the assessment of personal property tax on vehicles.
For further questions concerning Personal Property Tax 434-455-3870.
|PERSONAL PROPERTY FAQs|
|What types of personal property are taxable?||Automobiles, trucks, recreational vehicles, motorcycles, trailers, boats, airplanes, mobile homes, business furniture, fixtures, equipment, and machinery and tools used in a manufacturing process.|
|How is personal property assessed?||The Commissioner of the Revenue is required by law to assess vehicles by means of a recognized pricing guide. The pricing guides utilized by the City of Lynchburg are the National Automobile Dealers Association official used car guide and the official older used car guide. Clean trade in is the value taken from these books. If a vehicle is not listed in the guide, the assessment will be based on a percentage of purchase cost or a percentage of MSRP. The pricing guide utilized for motorcycles is the National Automobile Dealers Association Motorcycle appraisal guide. The value taken is clean trade in. For most other personal property, the assessed value is based on a percentage of original cost.|
|How is the amount of tax determined?||The personal property tax rate is established by the Lynchburg City Council. The tax is figured by multiplying the property's assessed value by the tax rate. The current personal property rate is $3.80 per $100 of assessed value. The current rate for machinery and tools is $3.00. Mobile homes are assessed as personal property but are taxed at the real estate rate which is currently $1.11.|
|What is proration?||The City of Lynchburg is one of several localities in Virginia with the authority to collect personal property taxes on a pro-rated basis. In general terms, a vehicle's tax will be prorated on a monthly basis based on the number of months it has a situs in the City of Lynchburg or is owned by the taxpayer. Mobile homes, airplanes, and business equipment are not prorated.|
|If I move out of Lynchburg or sell my automobile, will my tax bill be prorated?||If you move out of state or into another prorating locality in Virginia or sell your vehicle, you are eligible to have your personal property tax bill prorated. You may receive either a credit or a refund of taxes paid for the portion of the year your property was not located in Lynchburg.If you move after January 1 of the tax year to a non-prorating locality you must pay the City of Lynchburg for the entire year. If you move to a prorating locality in Virginia you must provide a paid personal property receipt from that locality in order to receive a credit or refund from the City of Lynchburg.If you move to another state you must submit a copy of the other state's registration for your vehicle.If you have disposed of your vehicle you must provide a copy of a bill of sale or a repossession notice.|
|When is my personal property tax bill due?||Personal property taxes are billed in two installments. The first installment, which includes your city vehicle license fee, is mailed May 1 and is due June 5. The second installment is mailed November 1 and is due December 5.|
|I have purchased a new vehicle and registered it at DMV, do I need to obtain a City of Lynchburg decal?||The City of Lynchburg does not require automobiles to display a decal. All vehicles with active license plates will be charged a city license fee. This fee will be included on the first installment of personal property taxes. If your vehicle has been registered at DMV with a City of Lynchburg garage jurisdiction, you do not need to contact the Commissioner's office. DMV will forward your vehicle information to the Commissioner.|
|I have just moved into the City of Lynchburg, must I notify the Commissioner's office?||If you have changed your vehicle information at DMV to reflect a garage jurisdiction of Lynchburg, this information will be forwarded to the Commissioner. If you have not changed this information at DMV, contact the Commissioner's office immediately.|
|If I sell my automobile, whom must I notify?||The Virginia Department of Motor Vehicles and the Commissioner of the Revenue must be notified within 30 days. This is the legal responsibility of the citizen, not that of the motor vehicle dealer or new owner.|
|I am active duty military, am I liable for personal property tax in the City of Lynchburg?||Under the Servicemembers Civil Relief Act, active duty military personnel are subject to state and local taxation only in their home of record. If you maintain the City of Lynchburg as your legal residence and your vehicle is registered in Virginia you would be liable for personal property tax regardless of where you may be stationed or where your vehicle may be garaged or located during the tax year. If you and your spouse are in Lynchburg by virtue of military orders, you would not be liable for personal property tax. Any service member requesting an exemption from personal property tax will be required to submit a copy of their most recent leave and earnings statement.|
|I am a full-time college student, am I liable for personal property tax in the City of Lynchburg?||If you are a full-time student attending an institution of higher learning in Lynchburg, you would not be liable here if you are paying a personal property tax on the vehicle in your domicile. If you are a resident of Lynchburg attending college elsewhere, you are liable for personal property tax here.|