The collection of vehicle license tax by municipal and county (city) governments shall be governed by this Law.

The terms depicted in this Law shall have the meanings defined below:
(1)Public roads and rivers: Land and water communication lines open for public use.
(2)Transportation equipment: Vehicles and vessels.
(3)Total cylinder displacement volume: The product of cross section area of cylinder multiplied by piston stroke and number of cylinder.
(4)Military T/O transportation equipment: Transportation equipment, including command vehicle, motor truck, combat vehicle, communication vehicle and ships required of each military unit according to the military table of organization and equipment for contingent strength, excluding transportation equipment owned by military administrations or schools not included in the military table of organization and equipment.
(5)Public hospitals: Public hospitals and hospitals established by organizations on government record of registration.
(6)Assembled transportation equipment: Mobile transportation equipment assembled from parts manufactured at home and/or abroad.
(7)Equipment utilizing non-transportation vehicle: Non-transportation equipment using motor or other equipment in place of transportation vehicle, such as tiller planter for agricultural purpose that uses engine and is assembled into something similar to freight or passenger carrier.

The owner or user of a transportation equipment that uses public roads and rivers, notwithstanding whether the use is for public, private, or military purpose, shall apply to the local tax collection authority for vehicle license and pay vehicle license tax in addition to obtaining required permits and paying fees as provided under other laws.
The aforesaid vehicle license may be substituted by the license plate issued by transportation authorities that its physical issue is not required.
The vehicle license tax shall be collected by the tax collection authority under the municipal or county (city) government; if deemed necessary, the municipal or county (city) government may entrust the local transportation authority to collect the vehicle license tax and issue license on its behalf.

The municipal and county (city) government may, in view of the actual situation, exempt vessels from the vehicle license tax and report its decision to the Ministry of Finance for future reference.