Bulletin Number
VTB 08-2
Tax Type
Local Taxes
Motor Vehicle Fuel Sales Tax
Description
Important Information Regarding The Hampton Roads Transportation Authority
Topic
Persons Subject to Tax
Records/Returns/Payments
Date Issued
02-27-2008
On February 29, 2008, the Virginia Supreme Court ruled that the provisions of House Bill 3202 (Acts of Assembly 2007, Chapter 896) allowing the Northern Virginia Transportation Authority and the Hampton Roads Transportation Authority to impose the Motor Vehicle Repair Labor and Services Sales and Use Tax (“Repair Tax”) and the Hampton Roads Transportation Authority to impose the Motor Vehicle Fuel Sales Tax were unconstitutional. Accordingly, the Motor Vehicle Fuel Sales Tax in the Hampton Roads Transportation Authority and the Repair Tax in both Authorities are null and void. The Motor Vehicle Fuel Sales Tax imposed in the Northern Virginia Transportation District and in the member localities of the Potomac and Rappahannock Transportation Commission is not affected by this ruling.
TAX BULLETIN 08-2
Virginia Department of Taxation
February 27, 2008
Virginia Department of Taxation
February 27, 2008
IMPORTANT INFORMATION REGARDING
THE HAMPTON ROADS TRANSPORTATION AUTHORITY
THE HAMPTON ROADS TRANSPORTATION AUTHORITY
Motor vehicle repair labor and services sales and use tax (“Repair Tax”) and motor vehicle fuel sales tax: Change in Effective Date
On February 25, 2008, the Hampton Roads Transportation Authority announced that the taxes and fees it is authorized to impose by House Bill 3202 (Acts of Assembly 2007, Chapter 896) will take effect on May 1, 2008, instead of April 1, 2008.
Initially the Hampton Roads Transportation Authority voted to impose the taxes and fees effective April 1, 2008. However, to ensure compliance with the 60 day public notice requirement under House Bill 3202, the Hampton Roads Transportation Authority has decided on a 30-day delay in the imposition of the taxes and fees.
The Department of Taxation (“TAX”) is responsible for the administration and collection of both the Motor Vehicle Repair Labor and Services Sales and Use Tax (“Repair Tax”) and the Motor Vehicle Fuel Sales Tax. TAX has published the Guidelines and Rules for the Motor Vehicle Repair Labor and Services Sales and Use Tax (November 1, 2007) and the Guidelines and Rules for the Motor Vehicle Fuel Sales Tax (January 31, 2008) as required by House Bill 3202. These public documents can be found on TAX’s website, www.tax.virginia.gov. Taxpayers should note that these taxes will take effect in the Hampton Roads Transportation Authority on May 1, 2008, rather than on April 1, 2008, as stated in the Guidelines. As necessary, additional guidelines and rules will be published and posted on TAX’s website.
To the extent that TAX is able to identify those taxpayers potentially liable for these taxes, TAX will notify such taxpayers in advance of the effective date and supply them with updated forms and instructions. If a taxpayer is liable for one or both of these taxes and does not receive any information from TAX, he should register online at TAX’s website, www.tax.virginia.gov.
The returns and payments for both the Repair Tax and the Motor Vehicle Fuel Sales Tax will be due on or before the 20th day of the month following each reporting period. The first returns and payments will be due on June 20, 2008. Returns are due even if no tax is owed.
This change in the effective date of the imposition of these taxes in the Hampton Roads Transportation Authority does not affect the taxes and fees being imposed in the Northern Virginia Transportation Authority.
There is pending legislation in the General Assembly that would change the administration and collection of the Repair Tax. For information regarding the Repair Tax and the Motor Vehicle Fuel Sales Tax, please frequently check TAX’s website, www.tax.virginia.gov.
If you have any questions please contact TAX at (804) 367-8037.
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