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.