SB159: Hybrid electric motor vehicles and alternative fuel vehicles; repeals annual license tax.

SENATE BILL NO. 159

Offered January 8, 2014
Prefiled December 31, 2013
A BILL to amend and reenact § 58.1-2249 of the Code of Virginia, relating to eliminating the annual license tax on certain vehicles.
Patron-- Miller

Referred to Committee on Finance

Be it enacted by the General Assembly of Virginia:

1. That § 58.1-2249 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-2249. Tax on alternative fuel.

A. There is hereby levied a tax at the rate levied on gasoline and gasohol on liquid alternative fuel used to operate a highway vehicle by means of a vehicle supply tank that stores fuel only for the purpose of supplying fuel to operate the vehicle. There is hereby levied a tax at a rate equivalent to that levied on gasoline and gasohol on all other alternative fuel used to operate a highway vehicle. The Commissioner shall determine the equivalent rate applicable to such other alternative fuels.

B. (Contingent expiration date) In addition to any tax imposed by this article, there is hereby levied an annual license tax of $64 per vehicle on each highway vehicle registered in Virginia that is an electric motor vehicle, a hybrid electric motor vehicle, or an alternative fuel vehicle. However, no license tax shall be levied on any vehicle that (i) is subject to the tax on fuels levied pursuant to subsection A, (ii) is subject to the federal excise tax levied under § 4041 of the Internal Revenue Code, (iii) is a moped as defined in § 46.2-100, or (iv) is registered under the International Registration Plan. If such a highway vehicle is registered for a period other than one year as provided under § 46.2-646, the license tax shall be multiplied by the number of years or fraction thereof that the vehicle will be registered. The revenues generated by this subsection shall be deposited in the Highway Maintenance and Operating Fund.

B. (Contingent effective date) In addition to any tax imposed by this article, there is hereby levied an annual license tax of $50 per vehicle on each highway vehicle registered in Virginia that is an electric motor vehicle, except that no license tax shall be levied on any vehicle that is a moped as defined in § 46.2-100. If such a highway vehicle is registered for a period other than one year as provided under § 46.2-646, the license tax shall be multiplied by the number of years or fraction thereof that the vehicle will be registered.

2. That the Commissioner of the Department of Motor Vehicles shall establish a process to refund, without interest, any portion of the annual license tax collected pursuant to subsection B of § 58.1-2249 of the Code of Virginia on hybrid electric motor vehicles or alternative fuel vehicles, as defined under § 58.1-2201 of the Code of Virginia, that is attributable to registration years beginning on or after July 1, 2014. The Commissioner shall also establish a process to refund, without interest, the portion of the annual license tax collected pursuant to subsection B of § 58.1-2249 on electric motor vehicles that was attributable to registration years beginning on or after July 1, 2014, that is the difference between a rate of $64 per year and a rate of $50 per year.