Filing Rental Tax Returns

A motor vehicle rental tax return must be submitted each month even if no rental transactions occurred.

Due Date

All tax returns and payments must be postmarked or received at DMV by the 20th day of the month following the month in which the gross proceeds from such rentals were due. Payment must accompany the tax return. For example, rental tax reports and payments for the month of September are due October 20th.

Tax Return

Motor Vehicle Rental Tax Return (RT-420)

Rentors having rental locations in more than one city, county, or town in Virginia must also file the Motor Vehicle Rental Tax Schedule of Additional Tax (RT-424).

DMV Locality Codes for use on RT-424:

Cities: Counties: Towns:

Penalties and Interest

Rentors who fail to file a return and pay the rental taxes and the 2% rental fee when due are subject to a penalty of 10% of the taxes and the 2% rental fee due or $10.00, whichever is greater.* Returns filed late with no rental taxes due will be subject to a $10.00 penalty.

Interest of 1.5% per month will be assessed to any rental taxes and 2% rental fee not paid when due and to any penalties assessed until all overdue taxes, 2% rental fee, and penalties have been paid in full.

* Instructions for calculating the penalty are included on the RT-420.