The Botetourt County Board of Supervisors has adopted a resolution setting the percentage for personal property tax relief for the 2023 tax year ahead of the approaching November 1 due date for county personal property and real estate taxes.
According to administrator notes included in the August meeting packet, the board adopted ordinance amendments in 2005 regarding the Personal Property Tax Relief Act (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.
In determining how to distribute relief among 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.
Since 2006, the county has received a state block grant ($3,418,137.01) that 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.
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 41% based upon providing citizens with the $3.4 million state block grant. For 2022, the approved relief percentage was 39%, with the taxpayer portion set at 61% of the full tax amount.
Therefore, the tax burden to Botetourt County citizens based on this year’s recommended relief percentage vs. last year’s recommended percentage deceases from 61% to 59%. The 2023 relief (41%) and taxpayer portion (59%) percentages take into consideration the impact of changes in used car values, a slight reduction for the number of qualifying vehicles, and an increase 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