HB1474 • 2026

Retail Sales and Use Tax; exceptions for aircraft dealers.

<p class=ldtitle>A BILL to amend and reenact §§ 58.1-1502, 58.1-1503, 58.1-1506, and 58.1-1510 of the Code of Virginia and to repeal § 58.1-1507 of the Code of Virginia, relating to Virginia aircraft sales and use tax; exception for dealers.</p>

Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: O'Quinn
Last action: 2026-02-18
Official status: Failed
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on how dealers prove ownership of five or more aircraft, nor does it specify penalties for misrepresentation.

Tax Exemption for Aircraft Dealers

This bill removes the sales and use tax on aircraft sold or used in Virginia by dealers who own five or more aircraft during the year.

What This Bill Does

Removes the retail sales and use tax on aircraft sold or used in Virginia by dealers.

Who It Names or Affects

Aircraft dealers who own five or more aircraft during the calendar year.

Terms To Know

Dealer: Any person owning at least five aircraft during a calendar year and regularly selling aircraft.
Sales and Use Tax: A tax on the sale or use of goods, in this case, aircraft, within Virginia.

Limits and Unknowns

The bill does not specify how dealers will prove they own five or more aircraft.
It is unclear if there are any penalties for misrepresenting oneself as a dealer to avoid taxes.

Bill History

2026-02-18 House
Left in Committee Education
2026-02-18 House
Left in Committee Finance
2026-02-18 House
Left in Finance
2026-02-10 Subcommittee #2
House subcommittee offered
2026-02-08 House
Fiscal Impact statement From TAX (2/8/2026 6:49 pm)
2026-02-06 Subcommittee #2
Assigned HFIN sub: Subcommittee #2
2026-01-23 House
Presented and ordered printed 26105593D
2026-01-23 Finance
Referred to Committee on Finance

Official Summary Text

Virginia aircraft sales and use tax; exception for dealers.
Provides that the tax levied and imposed upon the retail sale of every aircraft sold in the Commonwealth and upon the use in the Commonwealth of any aircraft required to be licensed by the Department of Aviation under the Virginia Aircraft Sales and Use Tax Act shall not apply to such sale or use by a dealer, defined under law as any person owning five or more aircraft during the calendar year who the Tax Commissioner finds is in the regular business of selling aircraft. The bill contains technical amendments.

Current Bill Text

Read the full stored bill text

HOUSE BILL NO. 1474

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on Finance

on ________________)

(Patron Prior to Substitute--Delegate O'Quinn)

A BILL to amend and reenact §
58.1-1502
of the Code of Virginia, relating to Virginia aircraft sales and use tax; exception for dealers.

Be it enacted by the General Assembly of Virginia:

1. That §
58.1-1502
of the Code of Virginia is amended and reenacted as follows:

§
58.1-1502
. Tax levied.

There is hereby levied and imposed, in addition to all other taxes and fees of every kind now imposed by law, a tax upon the retail sale of every aircraft sold in the Commonwealth and upon the use in the Commonwealth of any aircraft required to be licensed by the Department of Aviation pursuant to §
5.1-5
. The amount of the tax to be collected shall be determined by the application of the following rate against the sale price or gross receipts:

1. Two percent of the sale price of each aircraft sold in the Commonwealth.

2. Two percent of the sale price of each aircraft not sold in the Commonwealth but required to be licensed for use in the Commonwealth. However, if the aircraft is licensed in the Commonwealth six months or more after its acquisition, the tax shall be two percent of the market value of such aircraft at the time it is licensed or two percent of the purchase price thereof, whichever is lower.

3. Two percent of the monthly gross receipts from the lease, charter or other use of any aircraft licensed for commercial use pursuant to §
5.1-5
B and held for sale by a dealer who has elected to be taxed under this paragraph as provided in §
58.1-1507
.

A transaction taxed under subdivision 1 shall not be taxed under subdivision 2, nor shall the same transaction be taxed more than once under either subdivision.

An aircraft subject to the tax under subdivision 3 shall be subject to the tax under subdivision 1 or 2 immediately upon the revocation of the commercial use license for such aircraft.

Subdivisions 1 and 2
shall
not
apply to
any
aircraft purchased for resale by a dealer.