Attention Military: How You Title Your Car Can Make a Big Difference re: the Car Tax

On this Memorial Day Weekend, I have seen so many examples of well-deserved benefits being given to our military.  Discounts and ways to save money are everywhere.  Before I write any further, I have to provide the caveat that I am not, nor have I ever been a tax attorney, advisor, or any other expert in tax law.  However, I am a resident of Virginia and a proud wife of a Navy Officer.  Therefore, I do have some practical experience with the oft-hated Personal Property Tax (also known as the Car Tax) here in Virginia.  If you are a military member, depending on how you title your car, you may be able to avoid the car tax.  Consider this chain of facts:

First:  All residents of Virginia must pay personal property tax on all of their vehicles.

Second:  Military members often do not claim their current duty station as their home of record.  For example, there are a vast number of service members who declare Texas, Tennessee, Florida, etc.  as their home state because they have lived there in the past and these states do not have an income tax.

Third:  When registering your car in Virginia, you must register each person who appears on the car title.  If both husband and wife are on the title, then both husband and wife must be on the car registration.

Fourth:  If one of the people on the Virginia car registration are Virginia residents, then the Virginia car tax must be paid.  If the only persons on the registration do not claim Virginia as their state of residence, then you can avoid the car tax.  All you must submit is verification that you claim an alternative state for your residence due to special consideration that is given to the military.

It all depends on who is on the title for the car.   For example, if the military service member is the husband and he has claimed Florida as his state of residence, and his is the only name that appears on the title, each year, he can submit documentation which will elimintate the requirement for him to pay the hundreds to over a thousand dollars in car tax.

But, again, you may want to consult a tax expert.