RD136 - Annual Report on the Personal Property Tax Relief Act (PPTRA) Compliance Program (2005)


Executive Summary:
Item 286 F.1 of Chapter 4 (the Appropriations Act) of the 2004 Special Session I Acts of Assembly requires the Department of Taxation to continue the comprehensive Personal Property Tax Relief Act (PPTRA) Compliance Program begun January 1, 2003. Item 286 F.9 of the Appropriations Act requires the Department of Taxation to make an annual report by November 1 on the total overpayments by the Commonwealth that have been identified for the prior fiscal year.

The Car Tax Compliance Program is working as intended by the General Assembly. Taxpayers have been educated about vehicle qualifications. Commissioners of the Revenue have been diligent in developing and implementing audit programs and taxpayers made voluntary compliance efforts by certifying the correct use of their vehicles. In FY05, audits conducted by TAX and Commissioners of the Revenue identified 19,738 business use vehicles erroneously receiving tax relief. The amount of tax relief recovered totaled $4,304,132.80. Statewide, the average recovery per vehicle was $218.74. The average recovery per vehicle in urban jurisdictions was $206.79 and rural jurisdictions were $245.52.