                                 CODE OF VIRGINIA

LICENSE TAX ON MOTOR VEHICLE DEALERS (§ 58.1-3734)

A. Notwithstanding the provisions of &#xA7; 58.1-605, whenever any locality
imposes a license tax applicable to motor vehicle dealers measured by the gross
receipts of such dealer, the dealer may separately state the amount of tax
applicable to each sale of a motor vehicle and add such tax to the sales price
of the motor vehicle. It shall be unlawful for a motor vehicle dealer to collect
an amount stated separately as such if such dealer knows the amount to be
greater than the tax applicable to such sale. The failure of such merchant to
recover the tax from the purchaser shall not relieve such merchant from the
obligation to pay the tax to the locality. Any locality may provide by ordinance
for the quarterly collection of the gross receipt taxes on such dealers who
separately state during the year such receipts are earned.

B. A motor vehicle dealer who collects excess business license tax shall
exercise due diligence to refund such tax, in excess of one dollar, to the
purchaser within 120 days of discovering such overpayment, and such dealer shall
produce evidence of such refund to the commissioner of the revenue or other
local assessing officer upon the request of either. Any amounts that are not
refunded to purchasers shall be remitted to the commissioner of the revenue or
other local assessing officer. During a three-year period after receipt of such
amounts, the commissioner of the revenue or other local assessing officer and
the treasurer, as that term is defined in &#xA7; 58.1-3123, shall refund such
amounts as appropriate to purchasers who produce documentation verifying such
overpayment. At the expiration of this period, the commissioner of the revenue
or other local assessing officer shall consider these funds as additional
business license tax. The locality may recover from the motor vehicle dealer its
costs of mailing, printing, and other reasonably necessary administrative costs
related to refunding such amounts to purchasers.

HISTORY: Code 1950, § 58-266.1; 1950, p. 155; 1956, c. 242; 1964, c. 424; 1968,
c. 619; 1970, cc. 231, 547; 1974, cc. 196, 438; 1975, cc. 23, 621; 1976, cc.
521, 719; 1977, c. 320; 1978, cc. 772, 799, 817; 1979, cc. 565, 568, 570; 1980,
cc. 318, 736; 1981, cc. 419, 636; 1982, cc. 348, 548, 552, 554, 558, 633; 1983,
c. 554; 1984, cc. 247, 675, 695; 1999, cc. 862, 957.