Tax Type
Property Tax
Description
Situs of student motor vehicle
Topic
Local Taxes Discussion
Property Subject to Tax
Date Issued
03-02-1995
You ask three questions regarding personal property taxes and local licensing fees on the vehicles of students attending institutions of higher education. You first inquire regarding the establishment of domicile of a student attending an institution of higher education. You next ask whether a student domiciled in Virginia who attends an out-of-state institution is subject to personal property tax on his vehicle in Virginia. Finally, you ask what establishes the situs of a vehicle if a parent, rather than the student, owns the vehicle.
Section 58. 1-3511(A) of the Code of Virginia1 establishes the situs of tangible personal property for purposes of local personal property taxation. As a general rule, property is taxable in the jurisdiction in which the property is located on tax day, rather than in the jurisdiction in which the owner is domiciled. See id. The situs of certain mobile property, such as motor vehicles, is the jurisdiction in which the property is normally parked or garaged. Id. § 58.1-3511(A) provides three instances in which the domicile of the owner, rather than where the vehicle is normally parked or garaged, controls situs: (1) when it cannot be determined where the vehicle is normally parked or garaged; (2) when the owner is domiciled in another state and pays a personal property tax on the same vehicle in the state of his domicile; and (3) when the vehicle is owned by a student attending an institution of higher education. § 46.2-752(A)(9) establishes the same situs for the imposition of local licensing fees on motor vehicles.
You ask first what governs the domicile of a student attending an institution of higher education. Domicile is composed of two elements: physical residence in a geographic location and an intent to remain there.2
Neither § 58.1-3511(A) nor § 46.2-752 establishes the domicile of a student. Rather the local tax official determines the domicile of a student on a case-by-case basis, considering all of the relevant facts.3 While it is generally presumed that a student does not intend to establish domicile in the locality in which he is attending school, factors may support a determination that a student has changed his domicile to the locality.4
You next ask whether a student who is domiciled in Virginia but attends an out-of-state institution is subject to personal property tax on his vehicle. Under the common law doctrine of mobilia sequuntur personam,5 the situs for the taxation of movable personal property is the domicile of the owner.6 While § 58.1-3511(A) changes this common law rule for most tangible personal property, the statute expressly retains the rule when the property is a vehicle owned by a student attending an institution of higher education. It is my opinion that the common law rule applies, regardless of whether the vehicle is physically located within or without the state on tax day and regardless of whether the vehicle is normally parked or garaged within or without the state.7 Accordingly, a student who is domiciled in Virginia but attends an out-of-state institution remains subject to personal property tax on his vehicle in the Virginia jurisdiction in which he is domiciled.8
Finally, you ask what establishes the situs of the vehicle when a parent, rather than the student, owns the vehicle. Under the general situs provisions of § 58.1-3511(A), a vehicle is subject to taxation in the jurisdiction in which it is normally parked or garaged. By the clear language of § 58.1-3511(A), domicile determines situs only "in the event the owner of the motor vehicle is a student attending an institution of higher education.' (Emphasis added.) Therefore, it is my opinion that if the vehicle is owned by the parent, the situs for taxation will be the locality in which the vehicle is normally parked or garaged.
1 Section 58.1-3511(A) provides:
- "The situs for the assessment and taxation of tangible personal property, merchants' capital and machinery and tools shall in all cases be the county, district, town or city in which such property may be physically located on the tax day. However, the situs for purposes of assessment of motor vehicles, travel trailers, boats and airplanes as personal property shall be the county, district, town or city where the vehicle is normally garaged, docked or parked. Any person domiciled in another state, whose motor vehicle is principally garaged or parked in this Commonwealth during the tax year, shall not be subject to a personal property tax on such vehicle upon a showing of sufficient evidence that such person has paid a personal property tax on the vehicle in the state in which he is domiciled. In the event it cannot be determined where such personal property, described herein, is normally garaged, stored or parked, the situs shall be the domicile of the owner of such personal property. However, in the event the owner of the motor vehicle is a student attending an institution of higher education, the situs shall be the domicile of such student. Any person who shall pay a personal property tax on a motor vehicle to a county or city in this Commonwealth and a similar tax on the same vehicle in the state of his domicile may apply to such county or city for a refund of such tax payment. Upon a showing of sufficient evidence that such person has paid the tax for the same year in the state in which he is domiciled, the county or city may refund the amount of such payment.'
3 See op. to Hon. Madison E. Marye, supra note 2, at 2; 1993 Op. Va. Att'y Gen. 33, 39.
4 See § 24.2-101 for factors to consider in determining domicile for purposes of voter registration. See also 1971-1972 Op. Va. Att'y Gen. 199 (discussing definition of "residence' in former § 24.1-1(11) (now § 24.2-101)).
5 "Movables follow the [law of the] person.' BLACK'S LAW DICTIONARY 1003 (1990).
6 See Hogan v. County of Norfolk, 198 Va. 733, 734, 96 S.E.2d 744, 745 (1957).
7 See Newport News v. Commonwealth, 165 Va. 635, 642, 183 S.E. 514, 516-17 (1936) (no controlling reason why doctrine of mobilia sequuntur personam should not apply to determine situs of floating property between two states, as well as between two localities within one state). Also, see footnote 8 for a possible limitation on imposing a tax on property not located within the state during any portion of the tax year.
8 This result may subject a student to double taxation on his vehicle if the out-of-state jurisdiction has statutory authority to impose a tax on the vehicle and does not provide an exception, as § 58.1-3511(A) provides, for those who pay a tax on the vehicle in their state of domicile. There is no constitutional barrier to the double taxation of property that has acquired a taxable situs in more than one state. See Citizens National Bank v. Durr, 257 U.S. 99, 109-10 (1921); Op. Va. Att'y Gen.: 1993 at 263, 264; 1990 at 264, 265. One exception is property permanently and continuously located outside the boundaries of a state for the entire taxable period. See Northwest Airlines v. Minnesota, 322 U.S. 292, 298-300 (1944).
Attorney General's Opinion