This bill aims to amend the Code of West Virginia by modifying the consumers sales tax on motor vehicle sales to include provisions for the exchange of used cars. The proposed changes establish that the tax rate on the sale and use of motor vehicles will remain at five percent of the sale price, with a provision allowing for the deduction of the sale price of exchanged vehicles on which the tax has already been paid. The bill specifies that the term "exchange of other vehicles" includes the sale of vehicles titled in the same taxpayer's name within seven days of applying for a new or used vehicle title, requiring a notarized bill of sale to qualify for the deduction.

Additionally, the bill clarifies definitions related to motor vehicle sales, including what constitutes a "sale" and a "motor vehicle," and outlines various exemptions from the tax. These exemptions include vehicles rented by licensed rental businesses, those acquired by certain organizations, and vehicles leased by residents of West Virginia. The bill also mandates that the Division of Motor Vehicles will be responsible for collecting the tax and dedicates the collected funds to the State Road Fund for highway maintenance and construction. Overall, the bill seeks to streamline the tax process for motor vehicle transactions while ensuring that the tax structure remains beneficial for both consumers and the state.

Statutes affected:
Introduced Version: 11-15-3c