This bill proposes amendments to the Code of West Virginia regarding the consumers sales tax on motor vehicle sales, specifically to include provisions for the exchange of used cars. The current law states that the tax rate on motor vehicles is five percent of the sale price, with a provision for an increase to six percent starting July 1, 2017. The new language clarifies that the sale price can be reduced by the value of exchanged vehicles for which the tax has already been paid. Additionally, it defines "exchange of other vehicles" to include sales 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 for qualification.

The bill also maintains the existing framework for tax exemptions and the collection of taxes by the Division of Motor Vehicles, ensuring that all taxes collected are dedicated to the State Road Fund for highway maintenance and construction. It emphasizes that no municipal or local sales taxes will apply to motor vehicle sales as defined in this article, while still allowing for the municipal business and occupation tax on vehicle retailers and leasing companies. Overall, the bill aims to modernize the tax structure for motor vehicle transactions in West Virginia by incorporating the exchange of used cars into the tax calculation.

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