Does the Military Spouses Residency Relief Act impact Virginia tax liabilities other than income tax?
Yes. The federal law contains relief provisions for personal property tax, as well as for income tax. In general, motor vehicles and other tangible personal property owned by the spouse of a service member will be protected from Virginia taxation to the same extent as if owned by the service member. Both the spouse and the service member must claim another state as their state of legal residency, and the property must be titled or leased in the name of the spouse, the service member, or both. For details, see Tax Bulletin 10-1.
