                                 CODE OF VIRGINIA

BASIS OF TAX (§ 58.1-2405)

A. In the case of the sale or use of a motor vehicle upon which the pricing
information is required by federal law to be posted, the Commissioner may
collect the tax upon the basis of the total sale price shown on such document;
however, if the Commissioner is satisfied that the purchaser has paid less than
such price, by such evidence as the Commissioner may require, he may assess and
collect the tax upon the basis of the sale price so found by him. In no case
shall such lesser price include credits for trade-in or any other transaction of
such nature.

B. In the case of the sale or use of a motor vehicle which is not a new motor
vehicle, the Commissioner may employ such publications, sources of information,
and other data as are customarily employed in ascertaining the maximum sale
price of such used motor vehicles but in no case shall any credit be allowed for
trade-in, prior rental or any other transaction of like nature.

C. In the case of the sale or use of a motor vehicle, which is not a new motor
vehicle, between individuals who are not required to be licensed as dealers or
salespersons under the provisions of &#xA7; 46.2-1508, the Commissioner may
collect the tax upon the basis of the total sale price as established by such
evidence as the Commissioner may require; provided that if such motor vehicle is
no more than five years old and is listed in a recognized pricing guide, the
total sale price shall not be less than the value listed in such pricing guide
for such vehicle, less an allowance of $1,500, unless the purchaser shall
execute an affidavit under penalty of perjury stating a lesser total sale price
and declaring such sale or use to be a bona fide transaction for full value. In
using a recognized pricing guide, the Commissioner shall use the trade-in value
specified in such guide, with no additions for optional equipment or
subtractions for mileage, so long as uniformly applied for all types of motor
vehicles. In no case shall any credit be allowed for trade-in, prior rental, or
any other transaction of like nature.

D. In the case of a person who is applying for a title to an abandoned motor
vehicle pursuant to &#xA7; 46.2-1202.2 that (i) is in such person&#8217;s
possession and (ii) did not sell at auction, the Commissioner may employ such
publications, sources of information, and other data as are customarily employed
in ascertaining the maximum sales price of such motor vehicle.

HISTORY: Code 1950, § 58-685.15; 1966, c. 587; 1974, c. 477; 1984, c. 675;
2003, c. 328; 2015, c. 615; 2025, c. 80.