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Treasurer - Personal Property Tax

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1. Who has to pay personal property tax?

Anyone who has personal property garaged or located in Caroline County. Beginning in 2013, Personal Property tax in Caroline County is prorated and fees will be charged based on the number of months you own the vehicle and live in Caroline County. For example, if you own your boat for the twelve months beginning on January 1, you will be billed for the entire year. If you buy your boat on June 10 you will be billed beginning with June through the end of the year.

2. What is considered taxable personal property?

Automobiles, trucks, trailers, mobile homes, motorcycles, aircraft, recreation vehicles, boats, outboard motors, farm machinery, antique cars, business equipment, and machinery and tools used in the manufacturing process.

Business vehicles, leased vehicles and personal leased vehicles, normally garaged in Caroline County, are taxable regardless of the location of the business.

Proration applies only to motor vehicles, trailers, boats, boat motors, motor homes and camping trailers.

3. What is the personal property tax based on?

The tax is based on the assessed value of the property being taxed.

4. Who sets the personal property tax rate?

The Board of Supervisors (BOS) establishes a personal property tax rate each year normally in April. The tax rate may vary according to category. Learn more about the BOS online.

5. How is personal property assessed?

The assessed value of personal property is based on a recognized pricing guide if available or a percentage of the original cost. The pricing guide used for motor vehicles is the National Automobile Dealers Association Assessment Guide. The value taken from the book is the trade-in value.

6. What are the current Personal Property Tax Rates?

Personal Property - $3.80/$100 of assessed valuation
Mobile Homes - $.82/$100 of assessed valuation
Machinery & Tools - $3.50/$100 of assessed valuation

Personal Property Tax Relief - 52%

7. Is Caroline County a prorating locality?

Yes. Beginning in 2013, Caroline County began prorating taxes; therefore, tax on motor vehicles is only due for the months you own the vehicle and had your vehicle registered in the county.

If you are a new Caroline County resident, you will only be taxed for the months you live in Caroline unless the county you moved from is a non-prorating locality. New residents who move to Caroline County from a non-prorating county will not be taxed again on already taxed personal property. Any newly acquired property, after moving to Caroline County, will be taxed in Caroline.

If within the Virginia Department of Motor Vehicles (DMV) records your vehicle is registered with Caroline as the Garage Jurisdiction, you will be billed from Caroline County.

Furthermore, as of January 1, 2013 any newly acquired vehicle, whether purchased or transferred to the county, must be registered with the Commissioner of the Revenue’s office.

8. How does proration affect me?

With the change to the proration method of taxation for motor vehicles, trailers, boats, boat motors, motor homes and camping trailers a few items have changed that affect you.

Now, the personal property tax will be prorated on a monthly basis for property you own and/ or have registered in the county. If you sell or transfer a vehicle out of Caroline County, the tax will be adjusted (prorated on a monthly basis) upon notification provided by you to the Commissioner of the Revenue and Department of Motor Vehicles (DMV).

If the tax has been paid, the appropriate amount of tax will be refunded or it may be credited against any of your other personal property taxes due during the same year.

9. Does it matter if I buy or sell my vehicle within the beginning or end of the month?

Yes. Taxes are prorated on a monthly basis. The proration ordinance states, “for the purposes of proration, a period of more than 0.5 of a month shall be counted as a full month and a period of less than 0.5 of a month shall not be counted.”

10. When must I file a tax return on my personal property?

Taxpayers who have vehicles located in Caroline County on January 1 must file with the Commissioner of the Revenue by February 1. Taxpayers having tangible personal property employed in a trade, business, or profession (Furniture, fixtures, machinery and tools) located in Caroline County on January 1 must file an itemized list of the personal property and/or equipment giving the date of acquisition and the original purchase price by February 1.

Taxpayers must also file a tax return by February 1 for mobile homes, campers, boats, outboard motors, farm machinery and aircraft. Property subject to proration must be filed with the Commissioner of the Revenue within 30 days of the purchase or move-in date to Caroline County.

For more information, visit the Commissioner of the Revenue page.

11. Is there a penalty for filing a tax return late?

Yes. A late filing penalty of 10% of the tax assessed is imposed and added to the tax bill for returns filed after the deadline. If the assessed tax is less than $10 the late filing penalty is imposed in the amount of the tax. A late filing penalty in the amount of $10 is imposed for assessed tax between $10-$100.

If a vehicle is registered with the Department of Motor Vehicles (DMV) indicating that a Caroline County jurisdiction or you filed a return last year, there will be a form set mailed to you detailing each motor vehicle, trailer or boat filed the previous year. The preprinted information on these forms should be changed if incorrect.

"I didn't get the form" does not excuse the late filing penalty. If you do not receive the forms, contact the Commissioner of the Revenue Office.

12. What happens if I don't file a personal property return?

Since assessment is based on information you provide, if none is provided, the Commissioner of the Revenue is required by law to assess the property based on the best information available which will result in a tax due on June 5 and December 5. If information regarding property subject to proration is not provided, a bill will be issued based on the best information available and payable at least 30 days after the bill date. This is called a statutory assessment.

13. My personal property tax bill reads “DELINQUENT TAXES,” what does this mean?

This message indicates that taxes on personal property, whether a vehicle, boat, motor home, etc., in your name or that you co-own(ed) is currently delinquent or outstanding. This message and the amount due are printed on all personal property tax bills associated with the owner or owners. The personal property tax bill will read XX – XX after Delinquent Taxes stating the year or years in which back taxes are owned. For example, taxes owed in 2010 - 2012 are shown as “Delinquent Taxes 10 - 12”.

For more specific information or to arrange a payment agreement to get caught up on your taxes, please contact Sharon Mitchell in the Compliance Department.

14. What happens if I sell a vehicle during the year?

You should notify the Commissioner of the Revenue and the Virginia Department of Motor Vehicles (DMV) as soon as possible so the taxes on the vehicle can be adjusted for the remainder of the year.

Contact the Commissioner of the Revenue.

15. What happens if I move out of Caroline County?

Within Virginia: If you move to a non-prorating county within Virginia, you will be liable to Caroline County for the full year. If you move to a prorating county, you will still be liable to Caroline County only for the months that the vehicle was garaged in Caroline County based on the notification to the Virginia Department of Motor Vehicles (DMV) of the move date.

Outside Virginia: If you move outside Virginia, you are liable to Caroline County for the months the vehicle is registered with DMV as garaged in Caroline County. To avoid problems, make sure you cancel your Virginia tags and register in your new state of residence as soon as possible following your move.

16. What happens if I move into Caroline County from another Virginia county during the year?

New residents who move to Caroline County are taxed on personal property from the date of their move. If you moved from a non-prorating Virginia locality, you will be liable to that jurisdiction for the entire year since Caroline County is prorating.

17. When is my personal property tax payment due?

Taxes on all personal property located in Caroline County on January 1 will be due in equal semi-annual payments on June 5 and December 5 as long as there are no changes.

Corrections to the original assessments (including prorated property) are taxed as supplemental tax bills. These are billed at various times during the year and are due 30 days after the billing.

18. Is there a penalty for paying my personal property tax late?

Yes. A penalty of 10% of the assessed tax, not the net tax due after tax relief, will be added to the taxes due. In addition, interest will be due on both the tax and penalty, at a rate of 10% per annum until paid. The county will not issue county decals while any personal property taxes remain unpaid.

19. What is a supplemental bill?

A supplemental bill is a correction to your tax bill or a new item that has been brought into Caroline County during the year. This can be from records of registered property with the Virginia Department of Motor Vehicles (DMV), Virginia Department of Game and Inland Fisheries or Caroline County. Supplemental bills are issued on a bimonthly basis so you may receive multiple bills per year.

20. I recently purchased a new vehicle, how do I register it in the County?

You need to contact the Commissioner of the Revenue. You can register your vehicle with them online. If you have questions regarding registering your vehicle, please call the Commissioner of the Revenue’s office at 804-633-1087 or fill out the online form.

21. What are my tax obligations if I am on active military duty maintaining Caroline County as my legal residence?

Under the Soldiers' and Sailors' Civil Relief Act, your tax liability would be to Caroline County regardless of where you are stationed or where your personal property may be garaged during the year.

22. As an active duty member of the military will I be taxed for personal property in Caroline County if I maintain a legal domicile in a state other than Virginia?

No. You would not be taxed in Caroline on personal property registered in the name of the service person, their spouse or both. However, personal property registered jointly with a non-military member other than your spouse would be taxable both for personal property taxes and county decals if the same tax was not paid to their legal domicile. Military personnel must present a copy of the current leave and earnings statement.

23. At the dealership, I paid them to register my vehicle with DMV. Was my car registered with Caroline County as well?

Possibly. You should still notify the Commissioner of the Revenue to be sure. This applies for all motor vehicles, trailers, boats, boat motors, motor homes and camping trailers.

Contact the Commissioner of the Revenue.

24. Does my vehicle qualify for the high mileage reduction on personal property vehicles?

If your vehicle has higher than average mileage, it may qualify for the high mileage reduction. To apply, you must submit your latest state inspection receipt for the vehicle every year to:

The Commissioner of the Revenue’s Office
P.O. Box 819
Bowling Green, VA 22427

 

Note, the discount only applies when a copy of your latest state inspection receipt is filed on or before February 1 of each year.

 

The high mileage assessment reduction will be taken from the National Automobile Dealers Association (NADA) January 1 official guide. The amount of the assessment reduction will vary according to the class and age of the vehicle. The value shown in the NADA mileage table will be adjusted from the assessed value. The personal property tax rate will then be applied to the reduced assessment.

 

Please note, the high mileage reduction does not apply to motorcycles, motor homes, large trucks or trailers.

25. Does my vehicle qualify for the Car Tax Relief?

Motor homes, trailers and farm use vehicles do not qualify. In addition, 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 the 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 from the individual?