PERSONAL PROPERTY tax exemption for Military Personnel and spouses
Application for Vehicle Tax Exemption Military Service Member and Spouse
Tax Exemption for Active-duty Military Personnel and their Spouses who are NOT residents of Prince William County, Virginia
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).
Prior to January 1, 2019, Military personnel and their spouse were required to have the same domicile or legal residence in order 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 servicemember for tax purposes. However, they must provide proof that Virginia is not their domicile or legal residence to receive the exemption.
How to Apply
Submit the application along with the required supporting documents.
- Copy of pertinent Leave and Earnings Statement (LES) for active duty service member to determine legal residence/domicile
- Copy of marriage certificate/license
- Copy of the spouse's military dependent ID card
- Proof of spouse's legal state of residence (copy of voter's registration card, driver's license, or state tax return)
- Copy of military orders authorizing dependent spouse travel
- Copy of the lease, if applying for an exemption on a leased vehicle
Vehicles stored, parked, and garaged in Prince William County, including those located on Quantico Marine Corps Base, must be registered with Prince William County.
Non-Exempt Military Personnel
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 the personal property tax and registration/license fee. 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.
Military Tax Exemption for Leased Vehicles
As of tax year 2016, United States active-duty military and/or their spouse with out-of-state legal residency leasing a vehicle qualify for 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.
Prior to tax year 2016, vehicles leased by a military person or property leased jointly by active duty members and their spouses, or other nonmilitary persons and located in Prince William County did not qualify for exemption or tax relief.
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 in which 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.
Foreign Military Personnel: Do Not Qualify
Servicemembers' Civil Relief Act applies to United States actie-duty members of the Army, Navy, Air Force, Marine Corps, and Coast Guard. Also, members of the National Guard on active duty for more than 30 days, and commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration engaged in active service.