The Hanover County Board of Supervisors acted on October 12th to lessen the impact of rising personal property values on taxpayers.
For this tax year only, passenger vehicles, SUVs and trucks weighing less than 10,000 pounds will be assessed at 80% of their taxable value rather than 100%. The difference will mean a 20% reduction in 2022 personal property tax bills.
Scott Harris, Commissioner of the Revenue, proposed the change to the Board of Supervisors on October 12th and the Board unanimously endorsed the recommendation. County Administration and the County’s Finance Department worked with the Commissioner to develop this one-time, tax relief plan.
“Since 2021, the values of motor vehicles in the County have risen at an unprecedented rate, resulting in a 20% average increase in assessed values. As the value of motor vehicles rises, so does the tax revenue associated with personal property taxes,” said Harris. With this approved recommendation, the County will not collect an estimated $13 million in personal property tax revenue – resulting in a direct and upfront tax relief for taxpayers.
A 20% reduction in personal property assessed values does not necessarily mean that the average tax bill will be less for all taxpayers, Harris said. It means that tax bills will have a smaller increase than if no changes were made.
The range of tax relief reduction for individual vehicles is estimated to be between $137 and $318. The average reduction is $228.
The change in assessment is effective immediately and will be applied to the 2022 tangible personal property tax bills that are scheduled to be mailed in early December. Personal property taxes in Hanover County are due by February 5th, 2023.
For more information on your personal property assessment and tax bills, please contact the Commissioner of Revenue’s Office at (804) 365-3377.