VirginiaIssues Guidelines and Rules for NOVA Repair Labor and Services Sales And Use Tax
On November 1, 2007, the Virginia Department of Taxation (TAX) issued guidelines and rules for the Virginia Motor Vehicle Repair Labor and Services Sales and Use Tax that affect the Northern Virginia Transportation Authority and the Hampton Roads Transportation Authority localities. The 20-page publication offers guidance to persons providing motor vehicle repair labor and services (Providers) regarding the new motor vehicle repair labor and services taxes enacted by House Bill 3202 (Acts of Assembly 2007, Chapter 896).
As called for in HB 3202, effective July 1, 2007, the Hampton Roads Transportation Authority and the Northern Virginia Transportation Authority were authorized to impose in their member localities a sales and use tax on motor vehicle repair services performed for a fee by a Provider at the rate of five percent of the sales price of the repair services. In general, the Repair Tax will be administered by TAX in the same manner as the local sales and use tax.
TAX has worked with affected Providers to develop these guidelines and rules. The final Guidelines will be posted on both the Department of Taxation’s website, www.tax.virginia.gov, and House Bill 3202’s website, www.hb3202.virginia.gov. As necessary, additional guidelines and rules will be published and posted on TAXês website.
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