                                 CODE OF VIRGINIA

LIMITATIONS ON IMPOSITION OF MOTOR VEHICLE LICENSE TAXES AND FEES (§ 46.2-755)

A. No locality shall impose any motor vehicle license tax or fee on any motor
vehicle, trailer, or semitrailer when:

   1. A similar tax or fee is imposed by the locality wherein the vehicle is
   normally garaged, stored, or parked;

   2. The vehicle is owned by a nonresident of such locality and is used
   exclusively for pleasure or personal transportation or as a TNC partner
   vehicle as defined in &#xA7; 46.2-2000 and not otherwise for hire or for the
   conduct of any business or occupation other than that set forth in subdivision
   3;

   3. The vehicle is (i) owned by a nonresident and (ii) used for transporting
   into and within the locality, for sale in person or by his employees, wood,
   meats, poultry, fruits, flowers, vegetables, milk, butter, cream, or eggs
   produced or grown by him, and not purchased by him for sale;

   4. The motor vehicle, trailer, or semitrailer is owned by an officer or
   employee of the Commonwealth who is a nonresident of such locality and who
   uses the vehicle in the performance of his duties for the Commonwealth under
   an agreement for such use;

   5. The motor vehicle, trailer, or semitrailer is kept by a dealer or
   manufacturer for sale or for sales demonstration;

   6. The motor vehicle, trailer, or semitrailer is operated by a common carrier
   of persons or property operating between cities and towns in the Commonwealth
   and not in intracity transportation or between cities and towns on the one
   hand and points and places outside cities and towns on the other and not in
   intracity transportation;

   7. The motor vehicle, trailer, or semitrailer is inoperable and unlicensed
   pursuant to &#xA7; 46.2-734; or

   8. The motor vehicle, trailer, or semitrailer qualifies and is licensed as an
   antique vehicle pursuant to &#xA7; 46.2-730.

B. No locality shall impose a license fee for any one motor vehicle owned and
used personally by any veteran who holds a current state motor vehicle
registration card establishing that he has received a disabled veteran&#8217;s
exemption from the Department and has been issued a disabled veteran&#8217;s
motor vehicle license plate as prescribed in &#xA7; 46.2-739.

C. No locality shall impose any license tax or license fee or the requirement of
a license tag, sticker or decal upon any daily rental vehicle, as defined in
&#xA7; 58.1-1735, the rental of which is subject to the tax imposed by
subdivision A 2 of &#xA7; 58.1-1736.

D. In the rental agreement between a motor vehicle renting company and a renter,
the motor vehicle renting company may separately itemize and charge daily fees
or transaction fees to the renter, provided that the amounts of such fees are
disclosed at the time of reservation and rental as part of any estimated pricing
provided to the renter. Such fees include a vehicle license fee to recover the
company&#8217;s incurred costs in licensing, titling, and registering its rental
fleet, concession recovery fees actually charged the company by an airport, or
other governmentally owned or operated facility, and consolidated facility
charges actually charged by an airport, or other governmentally owned or
operated facility for improvements to or construction of facilities at such
facility where the motor vehicle rental company operates. The vehicle license
fee shall represent the company&#8217;s good faith estimate of the average per
day per vehicle portion of the company&#8217;s total annual vehicle licensing,
titling, and registration costs.
			No motor vehicle renting company charging a vehicle license fee, concession
recovery fee, or consolidated facility charge may make an advertisement in the
Commonwealth that includes a statement of the rental rate for a vehicle
available for rent in the Commonwealth unless such advertisement includes a
statement that the customer will be required to pay a vehicle license fee,
concession recovery fee, or consolidated facility charge. The vehicle license
fee, concession recovery fee, or consolidated facility charge shall be shown as
a separately itemized charge on the rental agreement. The vehicle license fee
shall be described in either the terms and conditions of the rental agreement as
the &#8220;estimated average per day per vehicle portion of the company&#8217;s
total annual vehicle licensing, titling, and registration costs&#8221; or, for
renters participating in an extended rental program pursuant to a master rental
agreement, by posting such statement on the rental company website.
			Any amounts collected by the motor vehicle renting company in excess of the
actual amount of its costs incurred relating to its vehicle license fees shall
be retained by the motor vehicle renting company and applied toward the recovery
of its next calendar year&#8217;s costs relating to such fees. In such event,
the good faith estimate of any vehicle license fee to be charged by the company
for the next calendar year shall be reduced to take into account the excess
amount collected from the prior year.

E. As used in this section, common carrier of persons or property includes any
person who undertakes, whether directly or by lease or any other arrangement, to
transport passengers or household goods for the general public by motor vehicle
for compensation over the highways of the Commonwealth, whether over regular or
irregular routes, that has obtained the required certificate from the Department
of Motor Vehicles pursuant to &#xA7; 46.2-2075 or 46.2-2150.

HISTORY: Code 1950, § 46-65; 1950, p. 407; 1954, c. 575; 1958, c. 541, §
46.1-66; 1959, Ex. Sess., c. 22; 1976, cc. 5, 339; 1978, c. 188; 1984, c. 156;
1985, c. 123; 1989, c. 727; 1997, cc. 283, 496, 853; 2006, c. 515; 2007, c. 296;
2011, cc. 405, 639, 881, 889; 2015, cc. 2, 3; 2017, c. 372.