This year has been an unprecedented time regarding vehicle values. You may see an increase in value from 2021 to 2022. Over the past two years, vehicle values have increased due to a lack of new vehicle inventory that is in large part due to computer chip shortages. Used vehicle inventory is down because rental companies and individuals were unable to purchase new vehicles which has led them to purchase the available used vehicles. This has limited the number of used vehicles available and added to the market shortage. These increased vehicle values will impact assessments across the State of Virginia.
The Code of Virginia §58.1-3503 requires the Commissioner of the Revenue to value personal property by means of a recognized pricing guide. The City of Salem uses JD Power car guides (formerly NADA) to determine the value of vehicles at the clean loan value as of January 1st of each year. This assessment method has been used by the Commissioner of the Revenue’s office for over 25 years and the value used is generally one of the lowest in the guide. The clean loan value is used to account for wear and tear that a vehicle may incur over time. The Commissioner of the Revenue does not set tax rates. Tax rates are set by Salem City Council each year. The rate remains the same as 2021.
The State of Virginia continues to provide personal property tax relief on vehicles used for personal use on first $20,000 of the assessment. The relief is based on a set amount of funds provided to the City of Salem from the State each year. Due to the increased vehicle values, the percentage of relief offered for each qualifying vehicle has decreased for the 2022 year.
If there are items on your bill that you no longer own or you are no longer a resident of the City of Salem and these items are not showing adjusted by the months billed, please contact our office at 540-375-3019. Please remember call volume is high during this time of year. Inquiries can also be emailed to email@example.com. Payments are made through our Treasurer’s office which can be reached at 540-375-3024. Please let us know if you have any further questions or need assistance.
Kristie D. Chittum
Commissioner of the Revenue
City of Salem
FOLLOW THIS LINK TO REVIEW THE 2022 VEHICLE ASSESSMENT PROCEDURES