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PERSONAL PROPERTY ASSESSMENTS Tangible personal property, machinery and tools and merchants capital are subject to local taxation pursuant to Article X Section 4 of the Constitution and Section 58.1-3500 through 58.1-3521 of the Code of Virginia. Tangible Personal Property Categories of personal property which unless, otherwise specified, are to be included in the general classification of tangible personal property and are listed in Section 58.1-3503. The types of property listed include among others cars, trucks, boats, aircraft, farm equipment, and personal property employed in a trade or business. Unless otherwise specified these categories of property are not to be considered separate classes for rates purposes. Privately owned property which is leased to an agency or political subdivision of the federal, state or local governments is subject to taxation. Methods of valuation include percentage of original costs and the use of recognized pricing guides. The methods used for valuing property may differ among the separate categories of property so long as each method used is uniform within each category, is consistent with the requirements as listed in Section 58.1-3503, and may reasonably be expected to determine actual fair market value. The assessing officer shall make available to the taxpayers on request a reasonable description of the valuation methods used. Exemptions and Separate Classification Certain household goods and personal effects as listed in Section 58.1-3504 are defined as separate classifications of property and the local governing body may exempt in whole or in part all or any of those classes of property. Household appliances used in residential rental property shall be deemed to be fixtures and assessed as part of the real property. Farm animals, certain grains, agricultural products, farm machinery, farm implements and equipment as defined in Section 58.1-3505 are defined as separate classes of property and the local governing body may exempt in whole or in part, or provide for a different rate of tax, all or any of the separate classes. Grains, tobacco, wine produced by farm wineries and other agricultural products shall be exempt from taxation while in the hands of a producer. Section 58.1-3506 list properties which are declared to be separate classifications of property including among others watercraft over five tons, aircraft, antique automobiles and heavy construction equipment. The local governing body may levy a different rate of tax on these classes but not to exceed the rate applicable to the general class of personal property or machinery and tools whichever is appropriate. The rate of tax applicable to mobile homes shall be equal to the rate for real property. Machinery and Tools Machinery and tools, except machinery and equipment used by farm wineries, used in manufacturing, mining, processing or reprocessing, radio or television broad-casting, cable television, dairy, dry cleaning or laundry business shall be listed and segregated as a class of tangible personal property. The rate of tax imposed shall not exceed the rate imposed on the general class of tangible personal property. Motor vehicles and delivery equipment (not registered with the Division of Motor Vehicles pursuant to Section 46.2-600) and owned by persons engaged in business as set forth in Section 58.1-3507 shall be taxed as machinery and tools. Machinery and tools segregated for local taxation, other than energy conservation equipment of manufacturers shall be valued by means of depreciated cost or a percentage of original total capitalized cost excluding capitalized interest. Machine or tools and repair or replacement parts used directly in the harvesting of forest products shall constitute a separate class of personal property. The rate of assessment and tax shall not exceed that applicable generally to machinery and tools. Merchants Capital Merchants capital or inventory on hand; daily rental passenger cars as defined in Section 56.1-2401: daily rental property as defined in Section 56.1-3510: and other taxable personal property of any kind whatsoever, except money on hand and on deposit and except tangible personal property not offered for sale as merchandise shall be segregated for local taxation. Neither the rate, nor assessment ratio shall be greater than such rate and ratio in effect in the locality on January 1, 1978. Situs For Taxation The situs for assessment and taxation of tangible personal property, merchants capital and machinery and tools shall be the county, city, or town in which The property is physically located on the tax day, however the situs for motor vehicles, travel trailers, boats and air planes shall be the county, city, or town where the vehicle is normally garaged, docked or parked. If it cannot be determined where the property is normally kept the situs shall be the domicile of the owner. Any person who is domiciled in another state but whose vehicle is principally garaged or parked in the Commonwealth is not subject to taxation upon showing sufficient evidence that such person paid personal property tax on the vehicle in the state where he is domiciled. Motor vehicles, travel trailers, boats or air planes operating over interstate roads and in the rendition of a common contract or private carrier service which are subject to property taxation in another state on an apportioned assessment shall be apportioned in the same percentage as total miles traveled in the Commonwealth has to the total miles traveled. Vessels and containers regularly engaged in foreign or interstate commerce which are only temporarily in a county, city, or town of the Commonwealth on the tax may have not acquired situs for the purpose of taxation. Similarly cars, merchandise and equipment in transit which is stored, located or housed temporarily in a marine or airport terminal prior to being transported by vessels or aircraft to a point outside of the Commonwealth shall not acquire situs. Imports shall lose their status as imports and shall acquire situs when their original container or package is broken or when they reach their second place of rest or storage after being unloaded from aircraft, vehicle or vessel in which it was imported. Tax Day/Filing of Returns Except as otherwise stated in Section 58.1-3515, January 1 of each year shall be the tax day and the effective day of assessment. Certain counties, cities or towns as described in 58.1-3516 may provide for the proration of tax on a monthly basis for motor vehicles, trailers and boats which are acquired after the tax day or transferred prior to the end of the tax year. Such ordinance may exclude boats from the property subject to proration of the personal property tax. Any county or city may prorate the tax on mobile homes on a quarterly basis. Tax Relief for Elderly and Handicapped One motor vehicle owned and used by anyone at least 65 years of age or anyone who is permanently and totally disabled may be taxed at a different rate not to exceed the tax rate levied on other motor vehicles. This classification may occur only when the governing body adopts an ordinance as described in 58.1-3506.1-58.1-3506.8. |
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Copyright 2005, Virginia Association of Assessing Officers |
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