Relating to the rate of tax on motor vehicles

HB 3200 amends West Virginia's motor vehicle sales tax rules to clarify how tax is calculated when a buyer trades in a used vehicle. It allows buyers to deduct the value of a traded-in vehicle (on which tax was already paid) from the total purchase price, reducing the taxable amount. This applies to both new and used vehicle purchases and requires a notarized bill of sale for the traded vehicle, with the exchange occurring within seven days of the new vehicle's title application. The bill maintains a 5% tax rate (increasing to 6% after July 1, 2017) on the adjusted sale price, affecting anyone buying or selling used cars in West Virginia who uses a trade-in.