Tax Type
Taxes of Other Agencies
Description
Nonresident Servicemen where to register motor vehicle
Topic
Residency
Date Issued
08-28-1969
This is in reply to your letter of August 20, 1969, relative to the Virginia Motor Vehicle Sales and Use Tax. Specifically, you present three questions which I shall quote and consider in the order presented.
"1. Must a nonresident serviceman stationed in Virginia as a result of military or naval orders, or who is absent from his state of domicile under these same orders, who purchases a vehicle in Virginia, register that vehicle in Virginia or does he have the election of registering it elsewhere?'
A nonresident serviceman stationed in Virginia under the circumstances outlined would have an election as to whether he registered his motor vehicle here or in the State of his residence or domicile. Under the United States Code, Title 50 USC App. 574, § 514, provides that any such serviceman shall not be deemed to have lost a residence or domicile in any State solely by reason of being absent therefrom in compliance with military or naval orders, or to have acquired a residence or domicile in, or to have become resident in or a resident of any other State. Paragraph (2)(b) thereof makes this applicable to motor vehicle license fees. This office has always interpreted this law, generally known as the Soldiers' and Sailors' Civil Relief Act, as permitting a nonresident serviceman stationed in this State solely because of military or naval orders to register his motor vehicle in his home State, if he so elects.
"2. If the serviceman described above does register the vehicle in Virginia, does he then become subject to the tax?'
The motor vehicle sales and use tax prescribed by § 58-685.12, under Chapter 12.1, Title 58 of the Code of Virginia, is levied and imposed upon the sale of every motor vehicle sold in this State and upon the use in this State of any motor vehicle, with exceptions not here applicable. The tax shall be paid by the purchaser or the user of such motor vehicle and collected by the Commissioner at the time the owner applies to the Division of Motor Vehicles for and obtains a certificate of title.
In the case of Sullivan v. United States, 23 Law Ed. 2d 182, decided May 26, 1969, the Supreme Court of the United States held that § 514 of the Soldiers' and Sailors' Civil Relief Act does not exempt servicemen from the sales and use tax imposed by the State of Connecticut. In arriving at its decision the court concluded that the named section had reference to annually recurring personal property taxes and motor vehicle registration fees to the exclusion of such sales and use taxes. The Sullivan case has been carefully examined in light of the Connecticut law and the Virginia law in respect to sales and use tax and, in my opinion, the principles expressed in that case apply equally to the Virginia motor vehicle sales and use tax.
In consideration of the foregoing, I shall answer your question numbered 2 in the affirmative. Insofar as my letter of July 21, 1966, Report of the Attorney General (1966-1967) p. 199, expresses a contrary view, the same is hereby superseded.
"3. Does a serviceman as described above who purchases a vehicle in a state other than Virginia and subsequently registers the vehicle in Virginia become subject to the tax?'
For the reasons expressed in my reply to the previous question, this question is also answered in the affirmative.
Attorney General's Opinion