Release 11.1.24 (10/01/2018)

2018 Legislation - HB1441

This bill provides that all-terrain vehicles, mopeds, and off-road vehicles shall be subject to the motor vehicle sales and use tax but exempt from the retail sales and use tax. Current law provides that such vehicles are subject to the retail sales and use tax but exempt from the motor vehicle sales and use tax.

The motor vehicle sales and use tax will be imposed at the same rate as the state and local sales and use tax: a rate of six percent for jurisdictions in Planning Districts 8 and 23; and 5.3 percent for all other jurisdictions within the Commonwealth. The revenues collected from the motor vehicle sales tax on all-terrain vehicles, mopeds, and off-road vehicles will be distributed in the same manner as the state and local retail sales and use tax.

The tax rate applied will be based on the point of sale jurisdiction or garage jurisdiction. The minimum sales and use tax does not apply to this bill. DMV will still give credit for proof of SUT paid in another state.