The Truck Renting and Leasing Association (TRALA) announced March 7 that Virginia Gov. Bob McDonnell signed HB 1993 into law on March 6. The bill limitz the definition of “gross proceeds” in Virginia’s 10% motor vehicle rental tax and is effective for rental periods beginning July 1.
Before HB 1993, the “gross proceeds” included in the tax — although they were not explicitly stated — were cash discounts taken on a contract; finance charges, carrying charges, service charges, and interest from credit given on a contract; charges for motor fuels; charges for optional accidental death insurance; Motor Vehicle Sales and Use Tax; violations, citations, or fines and related penalties and fees; delivery charges, pickup charges, recovery charges or drop charges; pass-through charges; transportation charges; third-party service charges; and refueling surcharges.
The administration of the motor vehicle rental tax was recently transferred from the DMV to the Department of Taxation.
Auto Rental News tracked updates on the bill since it was first introduced on Jan. 11 and passed the Virginia House on Feb. 13 and the senate on Feb. 18.
Click here to view the text of HB 1993.