Personal property tax relief, (PPTR) gives tax relief on the taxes due for the first $20,000 in assessed value on qualified personal vehicles. No relief is given on any assessment amounts over $20,000. For example, if the vehicle assessment is $26,000, tax relief will be given on the tax due on the first $20,000 and full tax will be due on the remaining $6,000. Owners of qualified vehicles with an assessed value of $1,000 or less receive a 100% exemption of the taxes due on that vehicle.
The Following Vehicles Are Eligible for PPTR
Leased vehicles are eligible when the lessee is responsible for direct payment of the personal property tax by the terms of the lease agreement
Vehicles owned or leased by an individual that are predominately used for non-business purposes and have passenger license plates. Vehicles are automobiles, motorcycles, pickups and panel trucks registered with DMV with a gross weight of 10,000 pounds or less
The Following Vehicles Are Not Eligible for PPTR
If the cost of the vehicle is expended pursuant to section 179 of the IRS Code
More than 50% of the depreciation associated with the vehicle is deductible as a business expense
More than 50% of the vehicle's mileage for the year is for business purposes