What is the definition of Business Purposes?
If you can answer yes to any of the following criteria, your vehicle is considered predominantly used for business purposes and does not qualify for Personal Property Tax Relief. Therefore the taxpayer would be responsible for full payment of the tax. • More than 50% of the mileage for the year is claimed as a business expense for Federal Income Tax purposes OR is 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. • The vehicle is leased by an individual and the leasing company pays the tax without reimbursement from the individual. If your vehicle is improperly qualified or you are uncertain whether your vehicle is eligible for car tax relief, please contact the Commissioner of Revenue Office at 703-228-3135. Information about personal property tax relief is also available on the Commonweal
