Bill > HB1668

This bill modifies Virginia's motor vehicle sales and use tax laws by revising the definition of "sale price" to explicitly exclude the value of trade-in vehicles from the total price used to calculate sales tax. Specifically, the bill amends three sections of the Code of Virginia to clarify that when calculating the sales tax on a motor vehicle purchase, the amount of credit given by the seller for a trade-in vehicle should not be included in the total sale price. This means that if a person trades in their old car when purchasing a new one, the trade-in value will be subtracted from the new vehicle's price before calculating the sales tax. The changes also update language in related sections about how motor vehicle values are determined for tax purposes, ensuring consistency across different sections of the tax code. By making this modification, the bill aims to provide a more transparent and potentially lower tax burden for consumers purchasing motor vehicles by excluding trade-in values from the taxable amount.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB1668