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TAX Updates Guidelines for Motor Vehicle Rental, Port Volume Increase, Insurance Premiums License Taxes

June 20, 2018

The Virginia Department of Taxation (TAX) has published updated guidelines for three taxes and credits to ensure consistency with legislation passed during the 2013 General Assembly session.

TAX issued updated guidelines for:

For the purposes of the Motor Vehicle Rental Taxes and Fee (PDF), certain charges will be excluded from “gross proceeds,” effective July 1.

The 2013 legislation expanded which taxpayers may claim the Port Volume Increase Tax Credit (PDF), including agricultural, manufacturing-related and mineral and gas entities. Previously, only taxpayers engaged in the manufacturing or distribution of manufactured goods were eligible for the credit. The new guidelines are effective for taxable years beginning on or after Jan. 1, 2013.

Two bills passed during the 2013 Session made technical changes related to the administration of the Insurance Premiums License Tax (PDF), including:

  • Several changes to the interest rate applied to underpayments of tax by insurance companies
  • Payment and billing deadlines for the tax
  • Provisions for disclosure of information related to the tax

Those changes are effective for taxable years beginning on or after Jan. 1, 2013.

The guidelines were updated without public participation because no agency discretion was involved in conforming to the legislation. The updated guidelines supersede any prior guidelines.

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