Which entity must register the processing fee charged by the dealer?

• A. Department of Motor Vehicles (DMV)
• B. Internal Revenue Service (IRS)
• C. Motor Vehicle Dealer Board
• D. Local government office

Answer: (C)

The correct entity that must register the processing fee charged by the dealer is the Motor Vehicle Dealer Board. The Motor Vehicle Dealer Board in Virginia is responsible for overseeing the licensing and regulation of motor vehicle dealers, including ensuring compliance with the applicable laws and regulations concerning fees and charges.

This registration is essential because it helps maintain transparency and accountability in the auto sales industry. By regulating these fees, the Board ensures that dealers cannot impose excessive or unauthorized charges, protecting consumers from potential fraud or discrepancies in what they may be required to pay when purchasing a vehicle.

While the Department of Motor Vehicles plays a critical role in vehicle registration and titling, it does not specifically handle the registration of processing fees charged by dealers. The Internal Revenue Service focuses on tax regulations and compliance, while local government offices generally have jurisdiction over zoning and municipal matters, but not the specific licensing of motor vehicle dealers or their fees. Thus, the Motor Vehicle Dealer Board is the appropriate entity tasked with this responsibility.