Vehicle Licensing Guide

Local Vehicle Registration (LVR) Program
VLIC-314

PURPOSE:

To provide information relating to processing a local vehicle registration (LVR) fee that is collected with the state vehicle registration fee.

BACKGROUND:

DMV, in partnership with interested localities, created the LVR Program. This program was initiated in April 2003.

As provided in § 46.2-756, any locality (county, city, or town) can request that DMV collect LVR fees for motor vehicles, trailers, and semi-trailers in conjunction with the collection of state vehicle registration fees. The locality must enter into an agreement with DMV before DMV will collect LVR fees and then forward them to the locality.

Vehicle owners in participating localities can handle both state and local vehicle licensing requirements through a single transaction at DMV. Additionally, the locality may choose to no longer require local decals. The registration card indicates that the state and the locality have registered the vehicle.

Currently, the only locality participating in the LVR Program is VIRGINIA BEACH. However, this program is available to other localities. When a locality becomes a participant, vehicles currently garaged in the jurisdiction will be transitioned into the LVR Program.

Each participating locality MUST adopt the state vehicle registration period. DMV collects the LVR fee in relative proportion to the state vehicle registration period. For example:

• Multi-year state registration - Multi-year or twice the annual LVR fee
• Six-month state registrations - One-half the annual LVR fee
• Quarterly state registrations - One-fourth the annual LVR fee

A participating locality also must allow for prorated LVR registrations in accordance with DMV procedures.

NOTE 1: Rules and exemptions/discounts pertinent to state vehicle registration may or may not also apply to LVR participants. Likewise, LVR rules and exemptions/discounts may or may not apply to the state vehicle registration.

NOTE 2: If ANY condition precludes the vehicle owner's state vehicle registration from processing, the LVR will also be denied. An example is a stop condition has been placed on a customer or vehicle record.

<<<<<REVISION DMV does NOT collect LVR fees for the following:

• Vehicles not required to be registered with DMV
• Vehicles registered under the International Registration Plan (IRP)
• Vehicles/plates/customers qualified for local exemptions or discounts (Refer to each locality's chart under LOCALITY EXEMPTIONS/DISCOUNTS AND FEES.)
• Motor vehicles, trailers, and semitrailers registered as antique § (46.2-730).
  END REVISION>>>>>

The following transactions may involve the LVR process at DMV:

• Original registration (Refer to VLIC-4.000.)
• Renewal registration (Refer to VLIC-4.110.)
• Transfer registration and transfer of license plates (Refer to VLIC-4.120.)
• Change in vehicle status/license plates/decals (Refer to VLIC-4.520 or VLIC-4.115.) Examples of transactions resulting in the collection of additional LVR fees are:
  • Weight change
  • Vehicle use change
  • Other mid-year transactions
  
  NOTE: When changes in vehicle status/license plates/decals occur, LVR fees are collected ONLY if:
  • An LVR fee was collected on the prior vehicle registration transaction
         AND
    
  • The garage jurisdiction remains the same locality
         AND
    
  • The new transaction results in a fee increase.
• Change of address or change of garage jurisdiction (Refer to DLG-0601.)
  
  NOTE 1: Change the customer's address BEFORE processing the registration transaction so that the LVR fee will be automatically calculated correctly.
  
  NOTE 2: The garage jurisdiction can be changed on the registration transaction if the customer's address remains the same.
• Surrender plate/registration where a locality refund is issued (Refer to VLIC-4.705.)

Localities may choose to participate in both the LVR Program and the Vehicle Registration Withholding Stop (VRWS) Program. Participation in the LVR Program does not change the rules or procedures associated with the VRWS Program.

VEHICLE GARAGE JURISDICTION:

The basis for determining WHICH locality's LVR fees are collected is the VEHICLE GARAGE JURISDICTION on the DMV vehicle title record at the time of the state registration transaction.

NOTE: If the vehicle is NOT GARAGED in a participating locality, DMV does NOT collect the LVR fee.

LVR fees are prorated and refunded using the same criteria and methods as for the state vehicle registration fee. LVR refunds are based on each 6 full months remaining in a registration period. If a move occurs, change the customer's address (refer to DLG-0601) first so that the correct LVR fee is automatically calculated.

The following illustrates how to handle various types of moves or garage jurisdiction changes:

• OUT OF VIRGINIA - Upon application and surrender of the plates/registration, local and state fees will be refunded in 6-month increments provided 6 months or more remain in the registration period.
• INTO VIRGINIA - Local fees will be collected with the original vehicle registration.
• FROM A PARTICIPATING LVR LOCALITY TO A NON-PARTICIPATING LVR LOCALITY - If the new locality does not extend reciprocity, the customer must present a receipt or letter as proof that he has paid the new locality's fee. (The decal itself is NOT sufficient proof.) DMV will then use the LVR-only refund process to issue a refund of the LVR fees in 6-month increments provided 6 months or more remain in the registration period.
• FROM ONE LVR LOCALITY TO ANOTHER LVR LOCALITY - Reciprocity will be extended through the vehicle registration expiration date. LVR fees will be collected for the new locality upon renewal of the registration.
• FROM A NON-PARTICIPATING LVR LOCALITY TO AN LVR LOCALITY:
  • If the locality decal expires BEFORE the vehicle registration - The LVR locality will forego fees for the period between the expiration of the locality decal and the vehicle registration expiration. LVR fees will be collected for the new locality upon renewal of the registration.
  • If the locality decal expires AFTER the vehicle registration - At the time of the vehicle registration renewal, reciprocity credit will be granted through the expiration of the locality decal.

  NOTE: If the customer has moved from a non-participating LVR locality to a participating locality, the LVR fee, based on when the move occurred, may not be prorated for the same number of months as the state vehicle registration fee.

LOCALITY EXEMPTIONS/DISCOUNTS AND FEES:

§ 46.2-752A authorizes localities to establish exemptions and discounts to local registration requirements. Additionally, § 46.2-755 authorizes statewide exemptions and discounts that apply to all localities.

Refer to the Exemptions and Discounts chart (listing ALL of the locality's exemptions and discounts) and Fee chart for each participating locality:
     VIRGINIA BEACH CITY:       Exemptions and Discounts       Fees

DMV works with participating localities to administer the exemptions and discounts. The LVR program is designed for the locality to provide DMV, through a data exchange process, with information about specific customers, vehicles or plates that are to be granted exemptions or discounts.

Localities are responsible for providing DMV with their registration fee exemption and discount rules. The locality must ensure the exemption or discount information on DMV records is maintained and updated. (Any exceptions are noted on the Exemptions and Discounts chart.) The customer's exemption or discount MUST be on file at the time the registration transaction is performed. If not, the customer pays the full locality fee and is granted a full refund once the locality updates the exemption or discount information. This refund is handled using the LVR-only refund process.

Exemptions and discounts are designated as either permanent or expiring. Exemptions and discounts that expire have an expiration date associated with them. If the registration start date is on or before the exemption/discount expiration date, the exemption or discount is granted for the full registration period. If a registration is transferred to a different vehicle, the registration exemption or discount also transfers. In this case, a locality transfer fee may or may not apply.

NOTE: If a vehicle or customer is eligible for an exemption or discount, the vehicle renewal invitation will reflect that the exemption or discount has been applied to the fees shown.

CUSTOMER REQUIREMENTS:

1. Apply for registration of license plates by submitting a completed application or an "Invitation to Renew".
   
   NOTE: If the application is a pre-printed renewal, a message will appear on the application portion of the renewal notice, indicating LVR is required.
2. Pay appropriate registration fee(s).

DMV SERVICE PROVIDER'S PROCESS:

Process the registration transaction as outlined in the appropriate procedure:

• VLIC-4.000 (Registering a Motor Vehicle)
• VLIC-202 (Registration Renewal)
• VLIC-4.520 (Weight Change)
• VLIC-4.120 (License Plates - Transfer)
• VLIC-4.115 (License Plates/Decals - Reissue)
• VLIC-4.705 (Refunds - Full or Partial)

NOTE: If applicable, the LVR fee will appear on the automated record.

REFERENCE:

• Code of Virginia: §§ 46.2-600, 46.2-688, 46.2-752A, 46.2-755, 46.2-756

CONTACT:

For additional information contact:

• Your CSC Manager/Assistant Manager
• DMV DIRECT Help Desk at (804) 367-6646

PROCEDURE PROPONENT:

VSA/Registration Services