Virginia Tax Department Publishes Guidelines for Motor Vehicle Rental, Peer-to-Peer Vehicle Sharing Tax

The Virginia Department of Taxation Aug. 26 published guidelines for the motor vehicle rental taxes and fees due to tax law changes applicable to peer-to-peer vehicle sharing for excise and sales and use tax purposes. The guidelines represent the department’s interpretation of the relevant laws. The guidance includes information on: 1) imposition of tax on vehicle rentals and peer-to-peer vehicle sharing; 2) definitions of terms like “daily rental vehicle,” “gross proceeds,” “peer-to-peer vehicle sharing,” and “shared vehicle;" 3) registration and licensing of vehicles; 4) filing of monthly returns and payment of tax; and 5) local motor vehicle license taxes and ...