Tax Administration

PERSONAL PROPERTY Taxes and Registration Fees (car tax)
All military personnel who own vehicles registered in Prince William County must pay Personal Property Tax. Taxes are paid annually on October 5 for the entire calendar year and are prorated based on the registration and ownership of the vehicle. 

Vehicles stored, parked, and garaged in Prince William County, including those located on Quantico Marine Corps Base, must be registered with the county.

 

REAL ESTATE
All military personnel who own real estate in Prince William County must pay county Real Estate Taxes. Generally, for homeowners that have a mortgage, real estate taxes are collected by their mortgage companies in their monthly mortgage payments and are, in turn, forwarded to the county in two installments. The first installment is due July 15, and the second is due December 5. If you pay real estate taxes directly to the county, your tax bill is mailed to you.

 

RETIRED Military Personnel
Personal property owned or co-owned by retired military personnel does not qualify for exemption. Military personnel who retire during the year and continue to live in Prince William County become liable for personal property tax from the date of retirement. These persons have 60 days from the date of retirement to file on all personal property owned and located in Prince William County. They must submit their DD214, which will show the date of retirement, to [email protected].

 

TAX DEADLINE EXTENSIONS
For personal property and real estate taxes, state law allows an extension for payment when a service member is deployed outside of the United States. (Code of Virginia §58.1-3916)

• To request a payment extension under this provision, the service member should email [email protected] to notify Taxpayer Services of his/her deployment and pay within 90 days of post-deployment. Documentation, preferably a copy of military orders, will be required.

INCOME TAX
Other than military pay, income earned in Virginia is taxable even though it is reported to the home state. This income should be reported on a Nonresident State Income Tax return. The Virginia State income tax is administered by the Virginia Department of Taxation (TAX), PO Box 760, Richmond, VA 23206. Call 804-367-8031 to reach the Virginia Department of Taxation.

• Code of Virginia §58.1-341 allows for a 90-day extension for filing income taxes for deployed members of the armed services of the United States deployed outside of the United States. Such extension shall end, and the taxes become due 90 days following the completion of such member’s deployment. Contact the Virginia Department of Taxation for more information.

ACTIVE-DUTY Military

Tax Exemption for Active-duty Military Personnel and their Spouses who are NOT residents of Virginia. Vehicles owned by full-time active-duty service members of the Army, Navy, Air Force, Marine Corps, Coast Guard National Guard on active duty for more than 30 days, commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration engaged in active service, and spouses may apply for Military Tax Exemption.

Full-time active-duty service members and their spouses maintaining a legal domicile outside of Virginia who reside in Prince William County solely on military orders may qualify for an exemption from the local vehicle personal property tax based on certain qualifying conditions provided by the Military Spouses Residency Relief Act (MSRRA). Dependents and other co-owners do not qualify.

Prior to January 1, 2019, Military personnel and their spouse were required to have the same domicile or legal residence for the spouse to receive the exemption. Starting January 1, 2019, active-duty military personnel and their spouse are no longer required to have the same domicile or legal residence. Qualifying spouses may now elect to use the same residency as the service member for tax purposes. However, they must provide proof that Virginia is not their domicile or legal residence to receive the exemption.

To apply for an exemption, download and complete the Application for Vehicle Tax Exemption of Military Service Member and/or Spouse and submit it along with the applicable documentation:

• Copy of pertinent LES for active-duty service member to determine legal residence/domicile (each year that is being requested)
• Proof of Marriage
• Copy of non-military spouse’s military ID
• Proof of spouse’s legal state of residence (i.e., copy of voter’s registration card, driver’s license, W-2, state tax return, or 763S Form filed with spouse's employer)
• Copy of military orders authorizing dependent travel
• Copy of registration for all vehicles located in Virginia.
• If the vehicle is leased, a copy of the lease is required.

 

Is it legal for the Tax Administration Division to request copies of military ID cards? Yes. The Tax Administration Division may request documentation to establish residency status, including copies of military ID cards. This is according to DoD Instructions Number 1000.13 Title 18, US Code Part 1, Chapter 33, Section 701, January 3, 2007. 

 

Tax Exemption for Leased Vehicles. As of the 2016 tax year, United States active-duty military and/or their spouse, with out-of-state legal residency, leasing a vehicle qualifies as a personal property tax relief up to the vehicle's taxable value of $20,000. Any value over $20,000 will be taxed at the regular personal property tax rate.

 

Military personnel whose legal residence is Virginia do NOT qualify. Active-duty military personnel who claim Virginia as their legal residence do not qualify for a military tax exemption from personal property tax. All personal property subject to the tax must be reported, and the tax paid on these items, regardless of where the property is located during the year. Active-duty military personnel who are residents of Virginia but of a County other than Prince William must show proof of filing in that County to avoid paying personal property taxes in Prince William. All vehicles stored, parked, and garaged in Prince William County, including those located on Quantico Marine Corps Base, must be registered with Prince William County.

 

DISABLED VETERANS
Disabled veterans who meet specific criteria may be granted relief from real estate taxes on a home and up to one acre of land it occupies and the solid waste fee. (Code of Virginia, Title 58.1, Chapter 32, Article 2.3 Exemption for Disabled Veterans) Effective January 1, 2021, disabled veterans may qualify for relief on one automobile or pickup truck owned and used primarily by or for the veteran. Leased vehicles will not be eligible for Disabled Veteran Tax Relief.   

 

FOREIGN MILITARY PERSONNEL DO NOT QUALIFY
Service Members' Civil Relief Act applies to the United States active-duty Army, Navy, Air Force, Marine Corps, and Coast Guard members. Also, members of the National Guard on active duty for more than 30 days and commissioned Public Health Service and the National Oceanic and Atmospheric Administration officers engaged in active service.