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
1/26/2020

24VAC20-100-390. Computation of Rental Taxes.

The taxes and fees to be paid are computed as a flat 4.0% of the total gross proceeds from the rental in Virginia of all motor vehicles with a gross vehicle weight rating or gross combination weight rating of 26,000 pounds or less, plus a flat 4.0% of the total gross proceeds from the rental of all daily rental vehicles in Virginia, plus a flat 2.0% of the total gross proceeds from the rental of all daily rental vehicles in Virginia. The only adjustments permitted in the computation are as follows:

1. Proceeds from transactions which are exempt from the rental taxes and fees may be deducted from the gross proceeds on which the taxes and fees are computed; and

2. Bad debt accounts on rental transactions, if such accounts have been charged off as worthless for federal income tax purposes, may be deducted from the gross proceeds on which the taxes and fees are computed. However, any recovery of payment for bad debts previously charged off must be included as gross proceeds in the month for which payment is received.

Statutory Authority

§ 58.1-2421 of the Code of Virginia.

Historical Notes

Derived from VR485-60-8701 § 6.10, 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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