Treasurer
A MESSAGE FROM THE CITY OF ROANOKE
IMPORTANT CHANGES REGARDING ELIMINATING DECALS
Effective January 1, 2008, City Council passed an ordinance eliminating vehicle decals. The decal has been replaced with a license tax that is imposed on all motor vehicles that are titled with the Division of Motor Vehicles (DMV) and garaged in the City of Roanoke.
- The license tax will not be prorated or transferable to any other vehicle.
- Payment of the license tax and the personal property vehicle tax are due at the same time.
- The license tax is not an option and must be paid on all vehicles that are registered at the DMV.
- Failure to pay the license tax by the due date will cause your account to become delinquent.
If you change your vehicle ownership or change address you are required to notify the Commissioner of the Revenue within 30 days of the date the change occurs.
Personal Property Tax Relief
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. 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 City of Roanoke will be reimbursed by the Commonwealth for the amount of the reduction once you have paid the balance due shown on your bill. If your qualifying vehicle's assessed value is $1,000 or less, your tax has been eliminated and the Commonwealth's share is 100%. Tax relief is calculated using the City of Roanoke's effective tax rate in effect on August 1, 1997.
You are required to certify annually to the City of Roanoke that your vehicle remains qualified to receive car tax relief. Therefore, it is important that you review the information sent to you by your locality to be sure that your vehicles are properly qualified. This information may be included on items such as personal property tax returns, decal applications or 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 the City of Roanoke at 853-2521. When you pay your taxes on qualified vehicles, you are certifying to the City of Roanoke that your vehicle has been qualified correctly.
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