Vehicles Used in Interstate Commerce May Qualify for Lower Tax Rates

If your company’s vehicles operate in interstate commerce, you may be paying more personal property tax than required in Virginia. Vehicles used directly in business operations can sometimes qualify for assessment under the Machinery & Tools (M&T) rate—a significantly lower rate than standard vehicle taxes.

However, many localities continue to treat interstate-use vehicles as ordinary personal property, leading to overvaluations and inflated tax bills. While Virginia law distinguishes between vehicle and M&T classifications, it also allows certain exclusions and apportionments for motor carriers engaged in interstate commerce.

Now is the time to review your fleet’s assessments and verify whether your tax rate and valuation are correct.

Setliff Law advises transportation and logistics companies throughout the U.S. on regulatory, valuation, and tax compliance matters. If you believe your vehicles may be misclassified or overtaxed, our team can help evaluate your situation and identify relief opportunities.

If you have questions or would like more information, please contact Mitchell Goldstein (mgoldstein@setlifflaw.com) at (804) 377-1269 or Steve Setliff (ssetliff@setlifflaw.com) at (804) 377-1261.