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Personal Property Taxes

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North King Street in Historic Downtown Leesburg

 

 


Recent Changes to Personal Property Tax

On March 25, 2014, the Leesburg Town Council passed an ordinance to simplify personal property tax payments and improve customer service. The ordinance:

  • Eliminated pro-ration of the Town personal property taxes
  • Eliminated pro-ration of the Town motor vehicle decal fee
  • Changed the due date for personal property tax bills to May 5 from the current date of October 5
  • Aligned the payment date for the motor vehicle license fee with the personal property tax year of January 1 to December 31

As a result of this Council action, no personal property tax is due for tax year 2014. The next personal property tax bills will be sent in April 2015. The bills will be based on the assessed value of personal property located in the Town as of January 1, 2015. Payment will be due by May 5, 2015.

Please note that this change does not affect your Loudoun County personal property taxes.  Loudoun County bills for personal property taxes twice a year. You will receive personal property tax bills from Loudoun County that will be due on May 5 and October 5, 2014.

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General Information

All motor vehicles* registered to a Town address with the Virginia Department of Motor Vehicles must be registered with the Town, within 30 days of purchase or move. Titling and registering your vehicle with the Virginia Department of Motor Vehicles (DMV) does not automatically register the vehicle with the Town of Leesburg.  In addition, all vehicles parked, stored or garaged in the Town of Leesburg, including vehicles with out-of-state plates, are subject to personal property tax and must be registered with the Town.

*Motor vehicles subject to personal property tax includes all automobiles, trucks, taxicabs, motor vehicles with specially designed equipment for disabled persons, motorcycles, boats, trailers, campers, and other recreational vehicles.

If you do not receive a personal property tax bill by mail (typically mailed in early April), you should contact Town of Leesburg Finance Department at 703-771-2726. Failure to receive a bill does not relieve you of the obligation to file and pay taxes due on May 5th of each year.  It is the resident's responsibility to ensure the personal property tax billing information is correct and all updates are made through the Loudoun County Commissioner of Revenue.

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Registering Your Vehicles

Vehicles registered to a Town address with the Virginia DMW, parked, stored, or garaged in the Town must be registered with Loudoun County prior to being registered with the Town. Click here for information on how to register your vehicle with Loudoun County.

All residents of the Town of Leesburg must register their vehicles within 30 days of moving into the Town or purchasing a new vehicle.


Town Vehicle Decals

Residents and businesses registering a vehicle for personal property tax must also purchase and display a permanent Town vehicle decal. Town vehicle decals are valid as long as the vehicle is owned by the purchaser and all of the personal property taxes are current. For more information on purchasing or transferring a decal, please see the Vehicle Decals page.  


Vehicle Registration

You can register your vehicle and purchase the vehicle decal in person or by mail:

  • To register your vehicle in person, bring your valid state registration card, vehicle title or bill of sale, and your driver’s license to the Finance Department counter on the first floor of Town Hall (25 West Market St, Leesburg, VA 20176). We are open 8:30am to 5:00pm, Monday through Friday, except Town holidays.
  • To register your vehicle by mail, download and complete the vehicle decal request form, and mail the completed form with a copy of your valid state registration and payment for your Town Decal to:

Town of Leesburg
Finance Department
25 West Market St
Leesburg, VA 20176

Your vehicle decal will be mailed to you. 

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Paying Personal Property Taxes

The Town of Leesburg offers several options for paying your personal property taxes, including online payments.  For information about all of the payment options available, please go to the Finance Department's Personal Property Tax Payment Options page or click on the "Pay Bills Online" button in the left-hand navigation menu of the Town website home page.

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Delinquent Accounts

Payments not received by the due date (May 5th of each year) are subject to a 10% penalty and interest at 10% per annum for any unpaid balance. The Town vigorously enforces the collection of delinquent tax bills through tax liens, garnishments, DMV stops, and the Virginia Set-Off Debt program in which the Town may claim a taxpayer’s State of Virginia Income Tax refund. The taxpayer is responsible for all costs of collection.

The owner of any vehicle parked, stored, or garaged in the Town that does not display a valid Town vehicle decal is subject to a $100 fine for each violation. Town police and parking enforcement officers may issue tickets on private property (such as parking lots) with the consent of the property owner.

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Personal Property Tax Exemptions

The following individuals are fully or partially exempted from paying the personal property tax and vehicle license (decal) fee. All individuals must register their vehicles with the County and the Town and file annually for an exemption letter.

  • Exempt from paying both personal property tax and the vehicle decal fee:
    • Military personnel on active duty who are not residents of Virginia, if the vehicle is owned (not leased) and registered in the sole name of the active duty person.
    • Spouses of military personnel on active duty who are not residents of Virginia, if the vehicle is either registered in the sole name of the spouse or co-registered with the active duty person. 
    • Members of the United States Congress and their spouses.   
    • Recognized foreign diplomats and their immediate families.
          
  • Exempt from the vehicle decal fee, but must pay personal property tax:
    • Military personnel on active duty who are residents of Virginia. 
    • Disabled American veterans whose vehicles display current Virginia disabled veteran license plates.
        
  • Exempt from 50% of the vehicle decal fee and must pay personal property tax:
    • Members of the Virginia National Guard whose vehicles display current Virginia National Guard license plates.

Note: Leased vehicles, vehicles used in a trade or business, and vehicles co-owned with any person who does not qualify for a full or partial tax exemption are not eligible for personal property tax or vehicle decal fee exemptions.

Documentation Required for Exemption
Some exemptions require the submission of documentation. The following information is required to receive the appropriate exemption:

  • Vehicles owned solely by an active duty military member:
    • A copy of the member's military identification card
    • A copy of the member's current Leave and Earning Statement (LES)
        
  • Vehicles owned or co-owned by the spouse of an active duty military member:
    • A copy of the member's military identification card
    • A copy of the member's current LES
    • A copy of the marriage certificate or the spouse's military dependent identification card
        
  • Vehicles owned by recognized foreign diplomats and their immediate families:
    • A copy of the Personal Identification Card issued by the United States Department of State

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Tax Calculation

Personal property taxes are calculated using assessment data provided by the Loudoun County Commissioner of Revenue. Questions about assessments should be directed to the Commissioner of Revenue's office.

The current personal property tax rate is $1.00 per $100 of the assessed value of the vehicle.  Please note that taxes are calculated on the assessed value of the vehicle, not the sticker or sale price.

 On March 25, 2014, the Town Council passed an ordinance eliminating pro-ration of the Town personal property taxes and the Town vehicle decal fee.

Starting with tax year 2015, personal property taxes and vehicle license (decal) fees due will be based on the assessed value of vehicles parked, stored or garaged in the Town as of January 1st. Taxes will be due on May 5 of each year.

Delinquent personal property taxes up through tax year 2013 will continue to be pro-rated, as appropriate, on a case-by-case basis. 

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Personal Property Tax Relief

Under the Virginia Personal Property Tax Relief Act, the State reimburses the Town for a percentage of the taxes due on the first $20,000 of assessed value for certain vehicles that are subject to personal property tax. Each year, the Town recalculates the actual percentage of tax relief, based on the State reimbursement amount, in order to equitably distribute the tax relief. The current percentage of personal property tax relief on eligible vehicles for the Town of Leesburg is 52% of the first $20,000 of assessed value.  Examples of how the tax relief is calculated and applied to your personal property tax bill are available here.

In order to qualify for Personal Property Tax Relief, a vehicle must:

  • Be subject to personal property tax
  • Have a registered gross weight of less than 7,501 pounds
  • Not be leased under a contract in which the leasing company pays the personal property tax without reimbursement from the lessee
  • Not be used more than 50% for business purposes. For details on criteria used to determine if a vehicle is used for business purposes, please see the Loudoun County Commissioner of the Revenue website.

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

Tax relief is automatically applied to your Town of Leesburg personal property tax bill. However, if tax relief was not applied and you believe that your vehicle is eligible, please contact the Loudoun County Commissioner of the Revenue.  

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Assessments and Appeals

Vehicles are assessed at 100% of the property’s fair market value as determined by Loudoun County Commissioner of the Revenue.

Assessments may be appealed to Loudoun County Commissioner of the Revenue, for unusually high mileage, extensive unrepaired body damage or serious mechanical defects.

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Adjusting or Closing Your Account

All changes to vehicle status (purchases, trades, moves, sales, donations, etc.) should be promptly reported to the Virginia DMV and Loudoun County. Temporary absence from the Town does not exempt you from paying personal property taxes or the vehicle decal fee.

If you move out of the Town of Leesburg or dispose of a vehicle currently registered in the Town:

    • Remove the decal from the vehicle
    • Report the change in vehicle status to the DMV
    • Report the change in vehicle status to Loudoun County

For information about transferring or replacing a vehicle decal, please visit the Vehicle License (Decal) Fee page.

Beginning with the 2015 tax year, the Town will no longer pro-rate personal property taxes. Taxes will be assessed on the value of vehicles as of January 1st of each year and will be due by May 5th.

The Town will pro-rate personal property taxes for the 2013 tax year. If you moved out of the Town of Leesburg during 2013, or if you traded in, sold or otherwise disposed of a vehicle during 2013, you must provide proof of the change in vehicle status to Loudoun County before the Town can pro-rate your personal property taxes for 2013.    

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Contact Us

To obtain additional Personal Property Tax information or for questions, use our online form or send a detailed e-mail to pptax@leesburgva.gov. Email responses will be sent within two business days of the inquiry.

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