Virginia would exempt some out-of-state electric vehicles from tax

Virginia would not impose its motor vehicle sales and use tax on certain electric vehicles when they are first registered in Virginia. The provision covers an applicant with a valid, transferable title or registration from another state or a U.S. military branch who is registering the vehicle in Virginia for the first time. The applicant must have owned the vehicle for more than 12 months, or must show that another state’s sales tax was paid. For a vehicle owned less than 12 months, the applicant may instead show that the vehicle was bought while the applicant lived in another state, but the vehicle must be an electric vehicle. An electric vehicle must run entirely on stored battery power, have a battery of at least 25 kilowatt-hours, travel at least 100 miles, and be rechargeable from an outside electricity source. If the vehicle was bought within the last 12 months and the applicant cannot show payment of another state’s sales tax or the applicant’s out-of-state residence when buying it, Virginia tax would be based on the vehicle’s fair market value at registration. The supplied text gives no effective date. The provision applies when a covered vehicle is first registered in Virginia.