Virginia – Unconventional Vehicles Subject to Retail Tax

SALT Report 2387 – Legislation has been enacted in Virginia that subjects all-terrain vehicles, off-road motorcycles, foot scooters, and mopeds to the Virginia retail sales and use tax, however, these vehicles are exempt from the motor vehicle sales and use tax.

Additionally, the bill provides an exemption for vehicles registered for the first time in Virginia if the applicant holds a valid, assignable title or registration that was issued by another state or a branch of the United States Armed Forces and the applicant has owned the vehicle for longer than 12 months, or has owned the vehicle for less than 12 months and provides proof that sales tax was paid to another state.

However, if a vehicle has been purchased within the last 12 months and the applicant cannot provide proof that sales tax was paid to another state, the applicant will be required to pay sales tax to Virginia based on the fair market value of the vehicle at the time of registration.

The provisions in this Bill are effective July 1, 2013

For Further Information

Virginia State Legislature – Senate Bill 1038, Laws 2013