THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, March 16, 1995 TAG: 9503150120
SECTION: SUFFOLK SUN PAGE: 06 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 38 lines
Recently, your newspaper ran a letter to the editor, ``Discriminatory action at the hands of DMV,'' in which the writer alleged that the Department of Motor Vehicles discriminated against her by assessing a $35 fee when she changed her vehicle ownership from single ownership to co-ownership.
When vehicle ownership changes, the Department of Motor Vehicles is required to collect the Virginia Sales and Use Tax. DMV must collect three percent of the sale price or a minimum tax of $35, whichever is greater.
In the instance presented, the individual may state that no sale took place. However, under the Sales and Use Tax law, a sale is defined as ``any transfer of ownership or possession by exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of a motor vehicle.''
In this situation, the addition of another person's name to the registration is considered to fall under the ``sale'' part of the code. This is why the minimum of $35 was assessed.
The letter references a DMV employee stating that if the individuals were married, there would be no tax. A Sales and Use Tax is not imposed if the vehicle is a gift to a spouse, daughter or son. In this instance, the transaction did not qualify as a gift to a spouse, daughter or son.
I appreciate the opportunity to respond to this inquiry, and I hope that this response helps clarify the Sales and Use Tax.
Jeanne Chenault
Public Relations Coordinator
Department of Motor Vehicles
Richmond by CNB