The Botetourt County Board of Supervisors unanimously approved the Personal Property Tax Relief Act (PPTRA) read by County Finance Director Tony Zerrilla at last week’s meeting that establishes the percentage reduction for personal property tax relief at 42% for Botetourt County for the 2024 tax year.
According to the meeting’s agenda notes, in December 2005, the board adopted ordinance amendments regarding the PPTRA. These amendments addressed the new reimbursement method for car tax relief for vehicle values from $1,001 to $20,000, with no taxing of vehicles having a value of $1,000 or less. A state block grant ($3,418,137.01) has been received annually each year since 2006; this amount will remain unchanged in future years unless General Assembly legislation is enacted. This fixed amount has served to reduce the state’s subsidy from a targeted 70% (prior to 2006 under the Car Tax Program) to a smaller percentage.
In determining how to distribute relief among county taxpayers, the board adopted the Specific Relief Method in December 2005. This method gives localities the option to apply state relief on a per-vehicle basis and show the specific amount of relief on each tax bill. This method is reflected in the county’s current billing format.
This year, based upon projected vehicle values and the amount of tax relief to be provided by the state, the county’s reimbursement is projected to be 42% based upon providing county citizens with the $3.4 million state block grant. For 2023, the approved relief percentage was 41%, with the taxpayer portion set at 59% of the full tax amount.
Therefore, the tax burden to Botetourt County citizens based on this year’s recommended relief percentage versus last year’s recommended percentage decreases from 59% to 58%. The 2024 relief (42%) and taxpayer portion (58%) percentages take into consideration the impact of changes in used car values, an increase in the number of qualifying vehicles, and a decrease in the assessed values base.
This calculation is mandated by the Virginia General Assembly. Team members involved in this task were the Treasurer and Commissioner of Revenue. As required by the state, the Board of Supervisors is required to annually adopt a resolution setting the percentage reduction in personal property for that year.
~ Fincastle Herald staff report
