Personal Property FAQ's
What is the tax rate for personal property?
The tax rates for personal property are set by the Lee County Board of Supervisors each year.
For 2023, the tax rates for the following categories of personal property are as follows:
Automobiles: $1.90 per hundred of assessed value
Boats: $1.90 per hundred of assessed value
Motorcycles: $1.90 per hundred of assessed value
Trailers: $1.90 per hundred of assessed value
Recreational Vehicles: $1.90 per hundred of assessed value
Aircraft: $0.10 per hundred of assessed value
Mobile Homes: $0.6187 cents per hundred of assessed value
Business Personal Property: $1.90 per hundred of assessed value
Machinery and Tools: $2.00 per hundred of assessed value
Merchant Capital: $1.41 per hundred of assessed value
What is considered taxable personal property?
Automobiles, mobile homes, motorcycles, trailers, aircraft, business personal property, machinery tools and merchant's capital
Who has to pay personal property tax?
Anyone who has personal property located in Lee County on January 1 each year
If I sell or trade my vehicle after January 1st do I have to pay the full year taxes?
Yes. Lee County does not prorate taxes. You must pay the full years taxes on the vehicle you owned on January 1 of each year.
I moved out of Lee County after January 1, do I still owe personal property taxes for the whole year?
Yes. Lee County does not prorate personal property taxes. If you were a resident of Lee County on January 1, you are liable for personal property taxes for the entire year to Lee County.
Who sets the personal property tax rate?
The Lee County Board of Supervisors establishes a personal property tax rate each year. The tax rate may vary according to category.
What are my tax obligations if I am on active military duty maintaining Lee County as my legal residence?
Under the Soldiers' & Sailors' Civil Relief Act, your tax liability would be to Lee County regardless of where you are stationed or where your personal property may be garaged during the year.
As an active duty member of the military will I be taxed for personal property in Lee County if I maintain a legal domicile in a state other than Virginia?
No. You would not be taxed in Lee County on personal property registered in the name of the service person only, and if you reside here by virtue of active military orders. However, personal property registered jointly with a non-military member would be taxable for personal property taxes and license fees.
Does Lee County offer a discount for vehicles?
Yes, if your vehicle qualifies according to NADA guidelines. Please see the high mileage discount form in our Forms Section on this website.
Does Lee County offer a discount for vehicles owned by 100% Service Connected Disabled Veterans?
Yes. Effective January 1, 2021, Article X, Section 6 (a)(8) entitles each qualifying, 100% Service Connected Disabled Veteran, to a tax exemption on 1 passenger vehicle or pickup truck, provided that it is owned by the qualifying Veteran or by the spouse of the qualifying Veteran and is used for the benefit of the qualifying Veteran. Unlike the 100% Service Connected Disabled Veteran Real Estate exemption, this exemption does not have a surviving spouse benefit. This benefit expires upon the death of the qualifying Veteran.
Personal Property Tax Relief (PPTRA)
The Personal Property Tax Relief Act of 1998 provides tax relief for any passenger car, motorcycle, or pickup or panel truck having a registered gross weight of less than 7,501 pounds. Effective January 1, 2017 the registered gross weight was amended to allow vehicles with a gross weight of less than 10,001 pounds, provided that the vehicle has the appropriate passenger vehicle tag. The vehicle must be owned or leased by an individual and NOT used for business purposes. A vehicle is considered to be used for business purposes if:
· More than 50% of the mileage for the year is used as a business expense for Federal Income Tax purposes OR reimbursed by an employer;
· More than 50% of the depreciation associated with the vehicle is deducted as a business expense for Federal Income Tax;
· The cost of the vehicle is expensed pursuant to Section 179 of the Internal Revenue Service Code; or
· The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual.
Vehicles qualified for tax relief are noted on your tax bill and show a reduction for the portion of the tax the Commonwealth will pay. For qualified vehicles, your tax bill is reduced by the applicable tax relief percentage for the tax year on the first $20,000 of value. The Commonwealth of Virginia reimburses Lee County for the amount of the PPTRA reduction shown on your tax bill. Tax relief is calculated using Lee County's effective tax rate in effect on August 1, 1997. It is important that you review the information sent to you by Lee County to be sure that your vehicles are properly qualified. This information will be included on tax bills. If your vehicle is improperly qualified or you are uncertain whether your vehicle would be eligible for car tax relief because it is used part of the time for business purposes, contact our office at (276) 346-7722.
Personal Property tax applies at varying rates to the assessed value of the tangible personal property. Values are established by recognized pricing guides or a percentage of cost based on purchase date. The Commissioner of the Revenue's Office is the only office that has the authority to make an adjustment to an assessment. Adjustment for high mileage vehicles requires proper documentation and must be adjusted yearly.
The office has online access with the Department of Motor Vehicles. Online capability assists in tax assessments.