CHARLESTON, W.Va. – Gov. Joe Manchin’s plan to ensure that new West Virginia residents moving into the state will no longer be subject to the 5 percent privilege tax on automobiles takes effect June 7.
Prior to this change, West Virginia’s privilege tax on automobiles was charged not only on vehicles purchased in West Virginia, but also when new residents registered their cars with the West Virginia Division of Motor Vehicles after moving them from their previous states of residence. This punitive aspect of the privilege tax applied even though the new resident had previously paid a privilege or sales tax in another state.
“For many years, we’ve essentially penalized out-of-staters for relocating to West Virginia,” Manchin said. “It may initially have looked like a good way to generate revenue, but what it really did was discourage people and employers from coming here. It wasn’t much of a welcome gift for new residents or West Virginians who decided to return home.”
Manchin said the privilege tax also caused many border-county residents to illegally register their cars out of state or other new residents to fail to renew their registrations to avoid paying the 5 percent fee. “The way we collected it often caused the state to lose the tax and it prevented our counties from getting the personal property taxes needed for our schools.”
Manchin proposed eliminating this aspect of the tax in his 2007 State-of-the-State Address. The bill he signed in April includes a three-month amnesty, beginning June 7 and ending Sept. 7, 2007, for residents who have not titled and registered their vehicles in West Virginia. Moreover, in 2008 the entire privilege tax will be converted into a sales tax.
To obtain a new West Virginia title and registration, new residents must first report their vehicles at their county assessor’s office and obtain a completed affidavit. The next step is to bring the completed assessor’s affidavit, along with their out-of-state tax and registration documents, to their local DMV regional office, which will issue the West Virginia registration. Further information may be obtained by calling 1-800-642-9066 or by visiting any DMV regional office.
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