The City of Danville will provide a bigger tax break on personal use vehicles this year because owners are facing a huge increase in their valuations.
The tax relief rate for 2022 will increase from 35 percent of the assessed value to 65 percent.
“The value of used vehicles for our locality has increased on average around 30 percent,” said Michael Adkins, director of finance for the City of Danville. “That means if you had a vehicle that was $10,000 last year in assessed value, it’s around $13,000 on average this year. This would cause higher personal property tax bills.”
Personal property taxes in Danville are calculated at $3.60 per $100 of value. With the relief rate of 65 percent, the bill on a vehicle with an assessed value of $13,000 will be $163.80. At 35 percent, the bill would have been $304.20.
Under Virginia law, localities are required to utilize a subsidy provided by the Commonwealth for local tax relief on the first $20,000 of assessed value for vehicles coded as personal use. Vehicles with an assessed value of $1,000 or less receive 100 percent relief. This year’s subsidy would have resulted in a relief rate of only 35 percent.
The relief rate of 65 percent applies only for 2022.
Personal property bills will be mailed to customers during the first week of May and will be due on June 6. Citizens with questions regarding their personal property taxes can contact the office of the Commissioner of Revenue at 799-5145.
Original source can be found here.
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