58.1-2403 - Exemptions.
§ 58.1-2403. Exemptions.
No tax shall be imposed as provided in § 58.1-2402 if thevehicle is:
1. Sold to, rented or used by the United States government orany governmental agency thereof;
2. Sold to, rented or used by the Commonwealth of Virginia orany political subdivision thereof;
3. Registered in the name of a volunteer fire department orrescue squad not operated for profit;
4. Registered to any member of the Mattaponi, Pamunkey, or ChickahominyIndian tribes or any other recognized Indian tribe of the Commonwealth livingon the tribal reservation;
5. Transferred incidental to repossession under a recordedlien and ownership is transferred to the lienholder;
6. A manufactured home permanently attached to real estate andincluded in the sale of real estate;
7. A gift to the spouse, son, or daughter of the transferor.With the exception of a gift to a spouse, this exemption shall not apply to anyunpaid obligation assumed by the transferee incidental to the transfer;
8. Transferred from an individual or partnership to acorporation or limited liability company or from a corporation or limitedliability company to an individual or partnership if the transfer is incidentalto the formation, organization or dissolution of a corporation or limitedliability company in which the individual or partnership holds the majorityinterest;
9. Transferred from a wholly owned subsidiary to the parentcorporation or from the parent corporation to a wholly owned subsidiary;
10. Being registered for the first time in this Commonwealthand the applicant holds a valid, assignable title or registration issued to himby another state or a branch of the United States Armed Forces and (i) hasowned the vehicle for longer than 12 months or (ii) has owned the vehicle forless than 12 months and provides evidence of a sales tax paid to another state.However, when a vehicle has been purchased by the applicant within the last 12months and the applicant is unable to provide evidence of a sales tax paid toanother state, the applicant shall pay the Virginia sales tax based on the fairmarket value of the vehicle at the time of registration in Virginia;
11. a. Titled in a Virginia or non-Virginia motor vehicle dealer'sname for resale; or
b. Titled in the name of an automotive manufacturer having itsheadquarters in Virginia, except for any commercially leased vehicle that isnot described under subdivision 3 of § 46.2-602.2. For purposes of thissubdivision, "automotive manufacturer" and "headquarters"means the same as such terms are defined in § 46.2-602.2;
12. A motor vehicle having seats for more than sevenpassengers and sold to an urban or suburban bus line the majority of whosepassengers use the buses for traveling a distance of less than 40 miles, oneway, on the same day;
13. Purchased in the Commonwealth by a nonresident and aVirginia title is issued for the sole purpose of recording a lien against thevehicle if the vehicle will be registered in a state other than Virginia;
14. A motor vehicle designed for the transportation of 10 ormore passengers, purchased by and for the use of a church conducted not forprofit;
15. Loaned or leased to a private nonprofit institution oflearning, for the sole purpose of use in the instruction of driver's educationwhen such education is a part of such school's curriculum for full-timestudents;
16. Sold to an insurance company or local government groupself-insurance pool, created pursuant to § 15.2-2703, for the sole purpose ofdisposition when such company or pool has paid the registered owner of suchvehicle a total loss claim;
17. Owned and used for personal or official purposes byaccredited consular or diplomatic officers of foreign governments, theiremployees or agents, and members of their families, if such persons arenationals of the state by which they are appointed and are not citizens of theUnited States;
18. A self-contained mobile computerized axial tomographyscanner sold to, rented or used by a nonprofit hospital or a cooperativehospital service organization as described in § 501(e) of the United StatesInternal Revenue Code;
19. A motor vehicle having seats for more than sevenpassengers and sold to a restricted common carrier or common carrier of passengers;
20. Beginning July 1, 1989, a self-contained mobile unitdesigned exclusively for human diagnostic or therapeutic service, sold to,rented to, or used by a nonprofit hospital, or a cooperative hospital serviceorganization as described in § 501(e) of the United States Internal RevenueCode, or a nonprofit corporation as defined in § 501(c)(3) of the InternalRevenue Code, established for research in, diagnosis of, or therapy for humanailments;
21. Transferred, as a gift or through a sale to anorganization exempt from taxation under § 501(c)(3) of the Internal RevenueCode, provided the motor vehicle is not titled and tagged for use by suchorganization;
22. A motor vehicle sold to an organization which is exemptfrom taxation under § 501(c)(3) of the Internal Revenue Code and which isorganized for the primary purpose of distributing food, clothing, medicines andother necessities of life to, and providing shelter for, needy persons in theUnited States and throughout the world;
23. A truck, tractor truck, trailer, or semitrailer, asseverally defined in § 46.2-100, except trailers and semitrailers not designedor used to carry property and vehicles registered under § 46.2-700, with agross vehicle weight rating or gross combination weight rating of 26,001 poundsor more, in which case no tax shall be imposed pursuant to subdivisions 1 and 3of subsection A of § 58.1-2402;
24. Transferred to the trustees of a revocable inter vivostrust, when the individual titleholder of a Virginia titled motor vehicle andthe beneficiaries of the trust are the same persons, regardless of whetherother beneficiaries of the trust may also be named in the trust instrument,when no consideration has passed between the titleholder and the beneficiaries;and transferred to the original titleholder from the trustees holding title tothe motor vehicle;
25. Transferred to trustees of a revocable inter vivos trust,when the owners of the vehicle and the beneficiaries of the trust are the samepersons, regardless of whether other beneficiaries may also be named in thetrust instrument, or transferred by trustees of such a trust to beneficiariesof the trust following the death of the grantor, when no consideration haspassed between the grantor and the beneficiaries in either case;
26. Sold by a vehicle's lessor to its lessee upon theexpiration of the term of the vehicle's lease, if the lessee is a naturalperson and this natural person has paid the tax levied pursuant to this chapterwith respect to the vehicle when he leased it from the lessor, and if thelessee presents an original copy of the lease upon request of the Department ofMotor Vehicles or other evidence that the sales tax has been paid to theCommonwealth by the lessee purchasing the vehicle; or
27. Titled in the name of a deceased person and transferred tothe spouse or heir, or under the will, of such deceased person.
(Code 1950, §§ 58-685.13, 58-685.13:1; 1966, c. 587; 1970, c.409; 1972, cc. 302, 680; 1973, c. 457; 1974, c. 477; 1976, c. 610; 1977, c.537; 1978, cc. 758, 766; 1982, c. 541; 1984, c. 675; 1988, c. 372; 1990, cc.40, 849; 1995, cc. 27, 247, 786; 1997, c. 283; 1998, c. 322; 1999, c. 77; 2000,cc. 576, 602, 1027; 2002, c. 513; 2003, c. 278; 2005, cc. 246, 274; 2006, c.604; 2007, c. 896; 2008, cc. 304, 753; 2009, cc. 864, 871.)