The Commonwealth of Virginia levies a tax on businesses engaged in the daily rental of any motor vehicle, in lieu of personal property taxes. Businesses that are engaged in daily vehicle rentals are required to file a return with the Department of Motor Vehicles and pay the tax on a quarterly basis. The Department of Motor Vehicles, in turn, submits a quarterly report to the local Commissioner of the Revenue. Upon certification by the Commissioner the revenue is distributed to the locality.
The daily vehicle rental tax is four percent (4%) of the gross receipts from the rental.