Bulletin Number
VTB 86-3
Tax Type
Retail Sales and Use Tax
Description
Application of the Retail Sales and Use Tax to Off-Road Vehicles
Topic
Basis of Tax
Date Issued
03-20-1986
Virginia Tax Bulletin
Virginia Department of Taxation
86-3
DATE: March 20, 1986SUBJECT: Application of the Retail Sales
and Use Tax to Off-Road Vehicles
The Department of Taxation has received numerous questions concerning the application of the 4% retail sales and use tax to off-road vehicles. This Tax Bulletin sets forth the proper application of the tax to such vehicles.
Any motor vehicle dealer who sells off-road vehicles which are not subject to safety inspections and not required to be titled in Virginia must collect the 4% Retail Sales and Use Tax rather than the 2% Motor Vehicle Sales and Use Tax on all sales of such vehicles.
While some owners do elect to title such off-road vehicles, the Department of Motor Vehicles will require proof that the 4% Retail Sales and Use Tax has been paid as a prerequisite to titling. The 2% Motor Vehicle Sales and Use Tax does not apply to these vehicles and will not be collected.
If you sell off-road vehicles and are not currently registered for the collection of the 4% retail sales and use tax, you should immediately contact the Department of Taxation, Registration Unit, P. O. Box 6-L, Richmond, Virginia 23282 to secure a registration.
If you have any additional questions, please contact the Department of Taxation at (804) 257-8037. You may address questions about the Motor Vehicle Sales and Use Tax to the Department of Motor Vehicles, P. O. Box 27412, Richmond, Virginia 23269 or call at (804) 257-0523.
Tax Bulletins