This bill amends the Code of West Virginia to modify the consumers sales tax on motor vehicle sales, specifically addressing the exchange of used cars. The current law stipulates a five percent tax rate on the sale and use of motor vehicles, with a provision for deducting the value of exchanged vehicles on which the tax has already been paid. The new language clarifies 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. Additionally, it requires a notarized bill of sale for the exchanged vehicle to be presented with the title application, and limits the exchange to one vehicle.

Furthermore, the bill maintains the existing tax rate of five percent, which will increase to six percent for purchases made after July 1, 2017. It also outlines various exemptions from the tax, including those for rental vehicles, vehicles acquired by certain organizations, and vehicles leased by residents. The Division of Motor Vehicles is designated to collect the tax, which will be dedicated to the State Road Fund for highway maintenance and construction. The bill also prohibits any municipal or local sales tax on motor vehicle sales, ensuring that the state tax is the only applicable tax in this context.

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