Administrative Code

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Virginia Administrative Code
Title 24. Transportation and Motor Vehicles
Agency 20. Department of Motor Vehicles
Chapter 100. Virginia Motor Vehicle Rental Taxes and Fees Rules and Regulations
1/21/2020

24VAC20-100-190. Motor Vehicle Rental Taxes and Fees.

Taxes and fees are levied on the gross proceeds from the rental of motor vehicles in Virginia. The taxes are comprised of a 4.0% rental tax and a 4.0% additional rental tax. There is also a 2.0% rental fee on daily rental vehicles.

The 4.0% rental tax is a state tax and is levied on the gross proceeds from the rental in Virginia of all motor vehicles (refer to definition) with a gross vehicle weight rating or a gross combination weight rating of 26,000 pounds or less.

The 4.0% additional rental tax is levied on the gross proceeds from the rental in Virginia of any daily rental vehicle (refer to definition). The 4.0% additional tax is distributed by the department to the city, town, or county wherein the daily rental vehicle was delivered to the rental customer. No county, city, or town shall impose any tangible personal property tax, license tax, license fee or the requirement of a license tag, sticker or decal upon any daily rental vehicle that is subject to the 4.0% additional rental tax. The 4.0% additional rental tax is in addition to, and not in lieu of, the 4.0% rental tax.

The 2.0% rental fee is levied on the gross proceeds from the rental in Virginia of any daily rental vehicle (refer to definition). The 2.0% rental fee is used to pay the debt service on the bonds issued by the Virginia Public Building Authority for the Statewide Agencies Radio System (STARS) for the Department of State Police. The 2.0% rental fee is in addition to the 4.0% rental tax and the 4.0% additional rental tax.

The following table is provided to clarify the tax and fee structure by listing certain types of vehicles and the taxes that apply.

TYPE OF VEHICLE

APPLICABLE TAX

Motor vehicles with a gross vehicle weight rating or gross combination weight rating of 26,000 pounds or less.

4.0% rental tax and 4.0% additional rental tax and 2.0% rental fee.

Motor vehicles with a gross vehicle weight rating or gross combination weight of 26,001 pounds or more.

4.0% additional rental tax and 2.0% rental fee.

Manufactured homes.

4.0% rental tax.

Mobile offices.

No rental tax or fee.

Motorcycles.

4.0% rental tax.

Statutory Authority

§ 58.1-2421 of the Code of Virginia.

Historical Notes

Derived from VR485-60-8701 § 4, eff. January 1, 1987; amended, Volume 13, Issue 22, eff. July 1, 1997; Volume 20, Issue 21, eff. July 1, 2004.

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