EXTENDED: Personal Property Taxes Not Due Until December 15 in Alexandria

Alexandria assesses $5.33 per $100 value of cars in its personal property tax statute. (Courtesy photo)

ALEXANDRIA, VA – The City Council unanimously voted Tuesday, September 8, to delay the personal and business property tax payment deadlines from October 5 until December 15, 2020.

In a statement provided by the City, residents can ignore the October 5 deadline printed on bills already mailed. Late payment penalties will not be incurred until December 16.

Alexandria Mayor Wilson posted on is social media, “Council took this action in recognition of the difficult economic situation caused by the COVID-19 pandemic.”

Although the tax remains due and payable, taxpayers can submit partial payments over the coming months and longer payment plans are available for those with financial hardship.

There will also be a residential parking ticket moratorium in effect November 15 through December 15 but vehicle must at least be showing parking permit from the prior year.

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GENERAL FACTS ABOUT ALEXANDRIA PERSONAL AND BUSINESS PROPERTY TAXES:

NOTE: beginning with Tax Year 2019, City Council has abolished vehicle windshield decals. Decals were not included with 2019 tax bills as there is no longer any need to display them. The Police Department no longer issues tickets for failure to display a City decal. Residential parking bumper stickers are still required in applicable parking districts.

PERSONAL PROPERTY TAXES:

All motor vehicles normally parked, stored, or garaged (having situs) in the City of Alexandria, including vehicles with out-of-state plates, must be registered for the City’s annual personal property tax. All motor vehicles registered to a City address with the Virginia Department of Motor Vehicles must also be registered with the City, even vehicles normally parked, stored, or garaged in another state. (“Motor vehicles” include all automobiles, trucks, taxicabs, motor vehicles with specially designed equipment for disabled persons, motorcycles, boats, trailers, campers, and other recreational vehicles.)  Once registered with the City, a vehicle will remain registered until the vehicle owner provides the information and documentation needed to adjust or close the account. Personal property taxes are assessed based on the calendar year (January 1 to December 31) or any portion of the year during which a vehicle is liable for the tax. Annual personal property tax bills (including local registration and residential parking permit fees) are mailed in August with a due date of October 5 (or the next business day if October 5 falls on a weekend or holiday, but this year delayed until December 15).  Tax exemptions are available for some vehicles and/or vehicle owners.

The Personal Property Tax rate is $5.33 per $100 (5.33%) of the assessed value of the vehicle ($3.55 for vehicles with specially-designed equipment for disabled persons).

NOTE: Titling and registering a vehicle with the Virginia Department of Motor Vehicles (DMV) does not automatically register the vehicle with the City of Alexandria.

BUSINESS PROPERTY TAXES

The City assesses all business personal property, except computers, at 80 percent of the property’s purchase cost in its first year of service. In each subsequent year of service, the assessed value declines by ten percent until it reaches the minimum value of 20 percent of purchase cost in the seventh and later years of service. The City assesses computers at 65 percent of the property purchase cost in the first year of service, 45 percent the second year, 30 percent the third year, 20 percent the fourth year and five percent in the remaining years.

The tax is established by multiplying the assessed value of the property by the property tax rate. The tax rate for business personal property is $4.75 per $100 of assessed value.  The tax rate for machinery and tools is $4.50 per $100 of the assessed value.

City Council determines a separate property tax rate for machinery and tools during May of each year. The tax rates apply to the current tax year beginning January 1.

Some, but not all, non-profit organizations are exempt from paying the business personal property tax but must still file an annual return. More information can be found in the  Licensing and Tax Guide for Non-Profit Organizations.

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