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2002 SESSION
023095412Be it enacted by the General Assembly of Virginia:
1. That §§ 33.1-221.1:3, 58.1-603, 58.1-604, 58.1-604.1, 58.1-605, 58.1-606, 58.1-608.3, 58.1-611.1, 58.1-614, 58.1-627, 58.1-628, 58.1-638, and 58.1-815.1 of the Code of Virginia are amended and reenacted as follows:
§ 33.1-221.1:3. Northern Virginia Transportation District Program.
A. The General Assembly declares it to be in the public interest that the
economic development needs and economic growth potential of Northern Virginia
be addressed by a special transportation program to provide for the costs of
providing an adequate, modern, safe and efficient transportation network in
Northern Virginia which shall be known as the Northern Virginia Transportation
District Program (the Program), including, without limitation, environmental
and engineering studies, rights-of-way acquisition, construction, improvements
to all modes of transportation, and financing costs. The Program consists of
the following projects: the Fairfax County Parkway, Route 234 Bypass/Route 659
Relocated, Metro Capital Improvements, including the Franconia-Springfield
Metrorail Station and new rail car purchases, Route 7 improvements in Loudoun County and Fairfax
County, the Route 50/Courthouse Road interchange improvements in Arlington County, the Route
28/Route 625 interchange improvements in Loudoun County, Metrorail capital
improvements attributable to the City of Alexandria including the King Street
Metrorail Station access, Metrorail capital improvements attributable to
Arlington County, including Ballston Station improvements, Route 15 safety
improvements in Loudoun County, Route 1/Route 123 interchange improvements in
Prince William County, Lee Highway improvements in the City of Fairfax, Route
123 improvements in Fairfax County, Telegraph Road improvements in Fairfax
County, Route 1/Route 234 interchange improvements in Prince William County,
Potomac-Rappahannock Transportation Commission bus replacement program, and
Dulles Corridor Enhanced Transit programProgram (locality share), I-66
improvements and rail extension, I-95/I-395 improvements
and transit improvements, Route 1 improvements, Route 28 improvements, I-495
improvements and transit improvements, Tri-County/Loudoun
Parkway, Metrorail infrastructure replacement program, urban system
improvements, secondary system improvements (including unpaved roads), Columbia
Pike/Route 7 transit improvements, rail safety improvements, and VRE new
railcar purchase.
B. Allocations to this Program from the Northern Virginia Transportation District Fund established by § 58.1-815.1 shall be made annually by the Commonwealth Transportation Board for the creation and enhancement of a safe, efficient transportation system connecting the communities, businesses, places of employment, and residences of the Commonwealth, thereby enhancing the economic development potential, employment opportunities, mobility and quality of life in Virginia.
C. Except in the event that the Northern Virginia Transportation District Fund
is insufficient to pay for the costs of the Program, allocations to the Program
shall not diminish or replace allocations made from other sources or diminish
allocations to which any district, system, or locality would be entitled under
other provisions of this title, but shall be supplemental to other allocations
to the end that transportation improvements in the Northern Virginia
Transportation District may be accelerated and augmented. Allocations under
this subsection shall be limited to projects specified in subdivision (2) (s)
of § 33.1-268 (2) (s).
D. The Commonwealth Transportation Board may expend such funds from all sources as may be lawfully available to initiate the Program and to support bonds and other obligations referenced in subsection E of this section.
E. The Commonwealth Transportation Board is authorized to receive, dedicate or use first from (i) revenues received from the Northern Virginia Transportation District Fund, (ii) to the extent required, funds appropriated and allocated, pursuant to the highway allocation formula as provided by law, to the highway construction district in which the project or projects to be financed are located or to the city or county in which the project or projects to be financed are located, (iii) to the extent required, legally available revenues of the Transportation Trust Fund, and (iv) such other funds which may be appropriated by the General Assembly for the payment of bonds or other obligations, including interest thereon, issued in furtherance of the Program. No such bond or other obligations shall pledge the full faith and credit of the Commonwealth.
§ 58.1-603. Imposition of sales tax.
A. There is hereby levied and imposed, in addition to all other taxes and fees of every kind now imposed by law, a license or privilege tax upon every person who engages in the business of selling at retail or distributing tangible personal property in this Commonwealth, or who rents or furnishes any of the things or services taxable under this chapter, or who stores for use or consumption in this Commonwealth any item or article of tangible personal property as defined in this chapter, or who leases or rents such property within this Commonwealth, in the amount of three and one-half percent through 12:00 p.m. on June 30, 2003, and four percent beginning July 1, 2003:
1. Of the gross sales price of each item or article of tangible personal property when sold at retail or distributed in this Commonwealth.
2. Of the gross proceeds derived from the lease or rental of tangible personal property, where the lease or rental of such property is an established business, or part of an established business, or the same is incidental or germane to such business.
3. Of the cost price of each item or article of tangible personal property stored in this Commonwealth for use or consumption in this Commonwealth.
4. Of the gross proceeds derived from the sale or charges for rooms, lodgings or accommodations furnished to transients as set out in the definition of "retail sale" in § 58.1-602.
5. Of the gross sales of any services which are expressly stated as taxable within this chapter.
B. Beginning July 1, 2003, and ending at 12:00 p.m. on June 30, 2043, an additional sales tax of one-half of one percent is hereby levied and imposed on the property, activities, and services described in subsection A in Arlington County, Fairfax County, Loudoun County, Prince William County, the City of Alexandria, the City of Fairfax, the City of Falls Church, the City of Manassas, and the City of Manassas Park. All revenues collected pursuant to this subsection shall be distributed and used as set forth in subsection G of § 58.1-638.
§ 58.1-604. Imposition of use tax.
A. There is hereby levied and imposed, in addition to all other taxes and fees now imposed by law, a tax upon the use or consumption of tangible personal property in this Commonwealth, or the storage of such property outside the Commonwealth for use or consumption in this Commonwealth, in the amount of three and one-half percent through 12:00 p.m. on June 30, 2003, and four percent beginning July 1, 2003:
1. Of the cost price of each item or article of tangible personal property used or consumed in this Commonwealth. Tangible personal property which has been acquired for use outside this Commonwealth and subsequently becomes subject to the tax imposed hereunder shall be taxed on the basis of its cost price if such property is brought within this Commonwealth for use within six months of its acquisition; but if so brought within this Commonwealth six months or more after its acquisition, such property shall be taxed on the basis of the current market value (but not in excess of its cost price) of such property at the time of its first use within this Commonwealth. Such tax shall be based on such proportion of the cost price or current market value as the duration of time of use within this Commonwealth bears to the total useful life of such property (but it shall be presumed in all cases that such property will remain within this Commonwealth for the remainder of its useful life unless convincing evidence is provided to the contrary).
2. Of the cost price of each item or article of tangible personal property stored outside this Commonwealth for use or consumption in this Commonwealth.
3. A transaction taxed under § 58.1-603 shall not also be taxed under this section, nor shall the same transaction be taxed more than once under either section.
4. The use tax shall not apply with respect to the use of any article of tangible personal property brought into this Commonwealth by a nonresident individual, visiting in Virginia, for his personal use, while within this Commonwealth.
5. The use tax shall not apply to out-of-state mail order catalog purchases totaling $100 or less during any calendar year.
B. Beginning July 1, 2003, and ending at 12:00 p.m. on June 20, 2043, an additional use tax of one-half of one percent is hereby levied and imposed on the property, activities, and services described in subsection A in Arlington County, Fairfax County, Loudoun County, Prince William County, the City of Alexandria, the City of Fairfax, the City of Falls Church, the City of Manassas, and the City of Manassas Park. All revenues collected pursuant to this subsection shall be distributed and used as set forth in subsection G of § 58.1-638.
§ 58.1-604.1. Use tax on motor vehicles, machinery, tools and equipment brought into Virginia for use in performing contracts.
In addition to the use tax levied pursuant to § 58.1-604 and notwithstanding the provisions of § 58.1-611, a use tax is levied upon the storage or use of all motor vehicles, machines, machinery, tools or other equipment brought, imported or caused to be brought into this Commonwealth for use in constructing, building or repairing any building, highway, street, sidewalk, bridge, culvert, sewer or water system, drainage or dredging system, railway system, reservoir or dam, hydraulic or power plant, transmission line, tower, dock, wharf, excavation, grading, or other improvement or structure, or any part thereof. The rate of tax is three and one-half percent through 12:00 p.m. on June 30, 2003, and four percent beginning July 1, 2003, on all tangible personal property except motor vehicles, which shall be taxed at the rate of three percent; aircraft, which shall be taxed at the rate of two percent; and watercraft, which shall be taxed at the rate of two percent with a maximum tax of $1,000.
For purposes of this section the words "motor vehicle" means any vehicle which is self-propelled and designed primarily for use upon the highways, any vehicle which is propelled by electric power obtained from trolley wires but not operated upon rails, and any vehicle designed to run upon the highways which is pulled by a self-propelled vehicle, but shall not include any implement of husbandry, farm tractor, road construction or maintenance machinery or equipment, special mobile equipment or any vehicle designed primarily for use in work off the highway.
The tax shall be computed on the basis of such proportion of the original purchase price of such property as the duration of time of use in this Commonwealth bears to the total useful life thereof. For purposes of this section, the word "use" means use, storage, consumption and "stand-by" time occasioned by weather conditions, controversies or other causes. The tax shall be computed upon the basis of the relative time each item of equipment is in this Commonwealth rather than upon the basis of actual use. In the absence of satisfactory evidence as to the period of use intended in this Commonwealth, it will be presumed that such property will remain in this Commonwealth for the remainder of its useful life, which shall be determined in accordance with the experiences and practices of the building and construction trades.
A transaction taxed under §§ 58.1-604, 58.1-605, 58.1-1402, 58.1-1502, or § 58.1-2402 shall not also be taxed under this section, nor shall the same transaction be taxed more than once under any section.
§ 58.1-605. To what extent and under what conditions cities and counties may levy local sales taxes; collection thereof by Commonwealth and return of revenue to each city or county entitled thereto.
A. No county, city or town shall impose any local general sales or use tax or any local general retail sales or use tax except as authorized by this section.
B. The council of any city and the governing body of any county may levy a
general retail sales tax at the rate of one percent to provide revenue for the
general fund of such city or county. Such tax shall be added to the rate of the
state sales tax imposed by §§ 58.1-603 and 58.1-604 and shall be subject to all
the provisions of this chapter and the rules and regulations published with respect
thereto. The applicable brackets of prices shall be as prescribed in § 58.1-628
by the Tax Commissioner for the combined state and local tax. No discount
under § 58.1-622 shall be allowed on a local sales tax.
C. The council of any city and the governing body of any county desiring to impose a local sales tax under this section may do so by the adoption of an ordinance stating its purpose and referring to this section, and providing that such ordinance shall be effective on the first day of a month at least sixty days after its adoption. A certified copy of such ordinance shall be forwarded to the Tax Commissioner so that it will be received within five days after its adoption.
D. Any local sales tax levied under this section shall be administered and collected by the Tax Commissioner in the same manner and subject to the same penalties as provided for the state sales tax, with the adjustments required by § 58.1-628.
E. All local sales tax moneys collected by the Tax Commissioner under this section shall be paid into the state treasury to the credit of a special fund which is hereby created on the Comptroller's books under the name "Collections of Local Sales Taxes." Such local sales tax moneys shall be credited to the account of each particular city or county levying a local sales tax under this section. The basis of such credit shall be the city or county in which the sales were made as shown by the records of the Department and certified by it monthly to the Comptroller, namely, the city or county of location of each place of business of every dealer paying the tax to the Commonwealth without regard to the city or county of possible use by the purchasers. If a dealer has any place of business located in more than one political subdivision by reason of the boundary line or lines passing through such place of business, the amount of sales tax paid by such a dealer with respect to such place of business shall be treated for the purposes of this section as follows: one-half shall be assignable to each political subdivision where two are involved, one-third where three are involved, and one-fourth where four are involved.
F. As soon as practicable after the local sales tax moneys have been paid into the state treasury in any month for the preceding month, the Comptroller shall draw his warrant on the Treasurer of Virginia in the proper amount in favor of each city or county entitled to the monthly return of its local sales tax moneys, and such payments shall be charged to the account of each such city or county under the special fund created by this section. If errors are made in any such payment, or adjustments are otherwise necessary, whether attributable to refunds to taxpayers, or to some other fact, the errors shall be corrected and adjustments made in the payments for the next six months as follows: one-sixth of the total adjustment shall be included in the payments for the next six months. In addition, the payment shall include a refund of amounts erroneously not paid to the city or county and not previously refunded during the three years preceding the discovery of the error. A correction and adjustment in payments described in this subsection due to the misallocation of funds by the dealer shall be made within three years of the date of the payment error.
G. Such payments to counties are subject to the qualification that in any county wherein is situated any incorporated town constituting a special school district and operated as a separate school district under a town school board of three members appointed by the town council, the county treasurer shall pay into the town treasury for general governmental purposes the proper proportionate amount received by him in the ratio that the school age population of such town bears to the school age population of the entire county. If the school age population of any town constituting a separate school district is increased by the annexation of territory since the last preceding school age population census, such increase shall, for the purposes of this section, be added to the school age population of such town as shown by the last such census and a proper reduction made in the school age population of the county or counties from which the annexed territory was acquired.
H. One-half of such payments to counties are subject to the further qualification, other than as set out in subsection G above, that in any county wherein is situated any incorporated town not constituting a separate special school district which has complied with its charter provisions providing for the election of its council and mayor for a period of at least four years immediately prior to the adoption of the sales tax ordinance, the county treasurer shall pay into the town treasury of each such town for general governmental purposes the proper proportionate amount received by him in the ratio that the school age population of each such town bears to the school age population of the entire county, based on the latest statewide school census. The preceding requirement pertaining to the time interval between compliance with election provisions and adoption of the sales tax ordinance shall not apply to a tier-city. If the school age population of any such town not constituting a separate special school district is increased by the annexation of territory or otherwise since the last preceding school age population census, such increase shall, for the purposes of this section, be added to the school age population of such town as shown by the last such census and a proper reduction made in the school age population of the county or counties from which the annexed territory was acquired.
I. Notwithstanding the provisions of subsection H, the board of supervisors of a county may, in its discretion, appropriate funds to any incorporated town not constituting a separate school district within such county which has not complied with the provisions of its charter relating to the elections of its council and mayor, an amount not to exceed the amount it would have received from the tax imposed by this chapter if such election had been held.
J. It is further provided that if any incorporated town which would otherwise be eligible to receive funds from the county treasurer under subsection G or H of this section be located in a county which does not levy a general retail sales tax under the provisions of this law, such town may levy a general retail sales tax at the rate of one percent to provide revenue for the general fund of the town, subject to all the provisions of this section generally applicable to cities and counties. Any tax levied under the authority of this subsection shall in no case continue to be levied on or after the effective date of a county ordinance imposing a general retail sales tax in the county within which such town is located.
§ 58.1-606. To what extent and under what conditions cities and counties may levy local use tax; collection thereof by Commonwealth and return of revenues to the cities and counties.
A. The council of any city and the governing body of any county which has
levied or may hereafter levy a city or county sales tax under § 58.1-605 may
levy a city or county use tax at the rate of one percent to provide revenue for the
general fund of such city or county. Such tax shall be added to the rate of the
state use tax imposed by this chapter and shall be subject to all the
provisions of this chapter, and all amendments thereof, and the rules and
regulations published with respect thereto, except that the applicable brackets
of prices shall be as prescribed in § 58.1-628 by the Tax Commissioner for the
combined state and local tax, and except that no discount under § 58.1-622
shall be allowed on a local use tax.
B. The council of any city and the governing body of any county desiring to impose a local use tax under this section may do so in the manner following:
1. If the city or county has previously imposed the local sales tax authorized by § 58.1-605, the local use tax may be imposed by the council or governing body by the adoption of a resolution by a majority of all the members thereof, by a recorded yea and nay vote, stating its purpose and referring to this section, and providing that the local use tax shall become effective on the first day of a month at least sixty days after the adoption of the resolution. A certified copy of such resolution shall be forwarded to the Tax Commissioner so that it will be received within five days after its adoption. The resolution authorized by this paragraph may be adopted in the manner stated notwithstanding any other provision of law, including any charter provision.
2. If the city or county has not imposed the local sales tax authorized by § 58.1-605, the local use tax may be imposed by ordinance together with the local sales tax in the manner set out in subsections B and C of § 58.1-605.
C. Any local use tax levied under this section shall be administered and collected by the Tax Commissioner in the same manner and subject to the same penalties as provided for the state use tax, with the adjustments required by § 58.1-628.
D. The local use tax authorized by this section shall not apply to transactions to which the sales tax applies, the situs of which for state and local sales tax purposes is the city or county of location of each place of business of every dealer paying the tax to the Commonwealth without regard to the city or county of possible use by the purchasers. However, the local use tax authorized by this section shall apply to tangible personal property purchased without this Commonwealth for use or consumption within the city or county imposing the local use tax, or stored within the city or county for use or consumption, where the property would have been subject to the sales tax if it had been purchased within this Commonwealth. The local use tax shall also apply to leases or rentals of tangible personal property where the place of business of the lessor is without this Commonwealth and such leases or rentals are subject to the state tax. Moreover, the local use tax shall apply in all cases in which the state use tax applies.
E. Out-of-state dealers who hold certificates of registration to collect the use tax from their customers for remittance to this Commonwealth shall, to the extent reasonably practicable, in filing their monthly use tax returns with the Tax Commissioner, break down their shipments into this Commonwealth by cities and counties so as to show the city or county of destination. If, however, the out-of-state dealer is unable accurately to assign any shipment to a particular city or county, the local use tax on the tangible personal property involved shall be remitted to the Commonwealth by such dealer without attempting to assign the shipment to any city or county.
F. Local use tax revenue shall be distributed among the cities and counties for
which it is collected, respectively, as shown by the records of the Department,
and the procedure shall be the same as that prescribed for distribution of
local sales tax revenue under § 58.1-605. The local use tax revenue that is not
accurately assignable to a particular city or county shall be distributed monthly by
the appropriate state authorities among the cities and counties in this Commonwealth
imposing the local use tax upon the basis of taxable retail sales in the
respective cities and counties in which the local sales and use tax was in
effect in the taxable month involved, as shown by the records of the
Department, and computed with respect to taxable retail sales as reflected by
the amounts of the local sales tax revenue distributed among such cities and
counties, respectively, in the month of distribution. Notwithstanding any other
provision of this section, the Tax Commissioner shall develop a uniform method
to distribute local use tax. Any significant changes to the method of local use
tax distribution shall be phased in over a five five-year period. Distribution
information shall be shared with the affected localities prior to implementation of the changes.
G. All local use tax revenue shall be used, applied or disbursed by the cities and counties as provided in § 58.1-605 with respect to local sales tax revenue.
§ 58.1-608.3. Entitlement to certain sales tax revenues.
A. As used in this section, the following words and terms have the following meanings, unless some other meaning is plainly intended:
"Bonds" means any obligations of a municipality for the payment of money.
"Cost," as applied to any public facility or to extensions or additions to any public facility, includes: (i) the purchase price of any public facility acquired by the municipality or the cost of acquiring all of the capital stock of the corporation owning the public facility and the amount to be paid to discharge any obligations in order to vest title to the public facility or any part of it in the municipality; (ii) expenses incident to determining the feasibility or practicability of the public facility; (iii) the cost of plans and specifications, surveys and estimates of costs and of revenues; (iv) the cost of all land, property, rights, easements and franchises acquired; (v) the cost of improvements, property or equipment; (vi) the cost of engineering, legal and other professional services; (vii) the cost of construction or reconstruction; (viii) the cost of all labor, materials, machinery and equipment; (ix) financing charges; (x) interest before and during construction and for up to one year after completion of construction; (xi) start-up costs and operating capital; (xii) payments by a municipality of its share of the cost of any multi-jurisdictional public facility; (xiii) administrative expense; (xiv) any amounts to be deposited to reserve or replacement funds; and (xv) other expenses as may be necessary or incident to the financing of the public facility. Any obligation or expense incurred by the public facility in connection with any of the foregoing items of cost may be regarded as a part of the cost.
"Municipality" means any county, city, town, authority, commission, or other public entity.
"Public facility" means (i) any auditorium, coliseum, convention center, or conference center, which is owned by a Virginia county, city, town, authority, or other public entity and where exhibits, meetings, conferences, conventions, seminars, or similar public events may be conducted; (ii) any hotel which is owned by a foundation whose sole purpose is to benefit a state-supported university and which is attached to and is an integral part of such facility, together with any lands reasonably necessary for the conduct of the operation of such events; or (iii) any hotel which is attached to and is an integral part of such facility. However, such public facility must be located in a city with a population of at least 24,200 but no more than 24,500 as determined by the 1990 United States Census, at least 50,000 but no more than 52,500, at least 95,000 but no more than 105,000, or at least 130,000 but no more than 135,000. Any property, real, personal, or mixed, which is necessary or desirable in connection with any such auditorium, coliseum, convention center, or conference center, including, without limitation, facilities for food preparation and serving, parking facilities, and administration offices, is encompassed within this definition. However, structures commonly referred to as "shopping centers" or "malls" shall not constitute a public facility hereunder. In addition, only a new public facility, or a public facility which will undergo a substantial and significant renovation or expansion, shall be eligible under subsection B of this section. A new public facility is one whose construction began after December 31, 1991. A substantial and significant renovation entails a project whose cost is at least fifty percent of the original cost of the facility being renovated and shall have begun after December 31, 1991. A substantial and significant expansion entails an increase in floor space of at least fifty percent over that existing in the preexisting facility and shall have begun after December 31, 1991.
"Sales tax revenues" means such tax collections realized under the Virginia
Retail Sales and Use Tax Act (§ 58.1-600 et seq.) of Title 58.1, as limited
herein. "Sales tax revenues" does not include the revenue generated by the one-half
percent sales and use tax increase enacted by the 1986 Special Session of the
General Assembly which shall be paid to the Transportation Trust Fund as
defined in § 33.1-23.03:1, nor shall it include the one percent of the state
sales and use tax revenue distributed among the counties and cities of the Commonwealth
pursuant to § 58.1-638 D on the basis of school school-age population.
B. Any municipality which has issued bonds (i) after December 31, 1991, but before January 1, 1996, (ii) on or after January 1, 1998, but before July 1, 1999, (iii) on or after January 1, 1999, but before July 1, 2001, (iv) on or after July 1, 2000, but before July 1, 2003, or (v) on or after July 1, 2001, but before July 1, 2004, to pay the cost, or portion thereof, of any public facility shall be entitled to all sales tax revenues generated by transactions taking place in such public facility. Such entitlement shall continue for the lifetime of such bonds, which entitlement shall not exceed thirty years, and all such sales tax revenues shall be applied to repayment of the bonds. The State Comptroller shall remit such sales tax revenues to the municipality on a quarterly basis, subject to such reasonable processing delays as may be required by the Department of Taxation to calculate the actual net sales tax revenues derived from the public facility. The State Comptroller shall make such remittances to eligible municipalities, as provided herein, notwithstanding any provisions to the contrary in the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.). No such remittances shall be made until construction is completed and, in the case of a renovation or expansion, until the governing body of the municipality has certified that the renovation or expansion is completed.
C. Nothing in this section shall be construed as authorizing the pledging of the faith and credit of the Commonwealth of Virginia, or any of its revenues, for the payment of any bonds. Any appropriation made pursuant to this section shall be made only from sales tax revenues derived from the public facility for which bonds may have been issued to pay the cost, in whole or in part, of such public facility.
§ 58.1-611.1. Rate of tax on sales of food purchased for human consumption; Food Tax Reduction Program.
A. Subject to the conditions of subsections D and E, the tax imposed by §§
subsection A of § 58.1-603 and subsection A of § 58.1-604 on food purchased for
human consumption shall be levied and distributed as follows:
1. From January 1, 2000, through March 31, 2001, the tax rate on such food shall be three percent of the gross sales price. The revenue from the tax shall be distributed as follows: (i) the revenue from the tax at the rate of one-half percent shall be distributed as provided in subsection A of § 58.1-638, (ii) the revenue from the tax at the rate of one percent shall be distributed as provided in subsections B, C and D of § 58.1-638, and (iii) the revenue from the tax at the rate of one and one-half percent shall be used for general fund purposes.
2. From April 1, 2001, through March 31, 2002, the tax rate on such food shall be two and one-half percent of the gross sales price. The revenue from the tax shall be distributed as follows: (i) the revenue from the tax at the rate of one-half percent shall be distributed as provided in subsection A of § 58.1-638, (ii) the revenue from the tax at the rate of one percent shall be distributed as provided in subsections B, C and D of § 58.1-638, and (iii) the revenue from the tax at the rate of one percent shall be used for general fund purposes.
3. From April 1, 2002, through March 31, 2003, the tax rate on such food shall be two percent of the gross sales price. The revenue from the tax shall be distributed as follows: (i) the revenue from the tax at the rate of one-half percent shall be distributed as provided in subsection A of § 58.1-638, (ii) the revenue from the tax at the rate of one percent shall be distributed as provided in subsections B, C and D of § 58.1-638, and (iii) the revenue from the tax at the rate of one-half percent shall be used for general fund purposes.
4. On and after April 1, 2003, the tax rate on such food shall be one and one-half percent of the gross sales price. The revenue from the tax shall be distributed as follows: (i) the revenue from the tax at the rate of one-half percent shall be distributed as provided in subsection A of § 58.1-638 and (ii) the revenue from the tax at the rate of one percent shall be distributed as provided in subsections B, C and D of § 58.1-638.
B. The provisions of this section shall not affect the imposition of tax on food purchased for human consumption pursuant to §§ 58.1-605 and 58.1-606.
C. As used in this section, "food purchased for human consumption" has the same meaning as "food" defined in the Food Stamp Act of 1977, 7 U.S.C. § 2012, as amended, and federal regulations adopted pursuant to that Act, except it shall not include seeds and plants which produce food for human consumption.
D. Notwithstanding the tax rates set forth in subsection A, the rate of tax on sales of food purchased for human consumption for any twelve-month period beginning on or after April 1, 2001, shall not be reduced below the rate then in effect for the Commonwealth's current fiscal year if:
1. Actual general fund revenues for the fiscal year preceding a fiscal year in which a rate reduction is contemplated in subsection A do not exceed the official general fund revenue estimates for such preceding fiscal year, as estimated in the most recently enacted and approved general appropriation act, by at least one percent; or
2. Any of the events listed in subsection C of § 58.1-3524 or subsection B of § 58.1-3536 have occurred during the then current fiscal year.
E. If the tax rate on food purchased for human consumption remains the same for the period January 1, 2000, through March 31, 2001, and the subsequent twelve-month period beginning on April 1, 2001, or with respect to any consecutive twelve-month periods beginning on and after April 1, 2001, the tax rate on such food shall remain the same unless none of the conditions described in subsection D have occurred, in which event the tax rate on food purchased for human consumption for the immediately following twelve-month period shall be equal to the next lowest tax rate listed in subsection A.
F. There is hereby created on the books of the Comptroller a nonreverting fund entitled the Food Tax Reserve Fund which shall be used solely for the statutory purposes of the Food Tax Reduction Program as established by this section, and as may be provided for in the general appropriation act. For the purpose of the Comptroller's preliminary and final annual reports required by § 2.1-207, all balances remaining in the Fund on June 30 of each year shall be considered a portion of the fund balance of the general fund of the state treasury.
G. The tax imposed by subsection B of § 58.1-603 or by subsection B of § 58.1-604 shall not apply to food purchased for human consumption.
H. The additional one-half of one percent increase effective July 1, 2003, in the tax imposed by subsection A of § 58.1-603 or subsection A of § 58.1-604 shall not apply to food purchased for human consumption.
§ 58.1-614. Vending machine sales.
A. Notwithstanding the provisions of §§ 58.1-603 and 58.1-604, whenever a dealer makes sales of tangible personal property through vending machines, or in any other manner making collection of the tax impractical, as determined by the Tax Commissioner, such dealer shall be required to report his wholesale purchases for sale at retail from vending machines and shall be required to remit an amount based on four and one-half percent of such wholesale purchases.
1. Beginning July 1, 2003, except in the localities set forth in subsection B of § 58.1-603 or subsection B of § 58.1-604, the amount to be remitted by such dealer shall increase and shall equal five percent of his wholesale purchases made on or after July 1, 2003, for sale at retail from vending machines.
2. Beginning July 1, 2003, and ending at 12:00 p.m. on June 30, 2043, in the localities set forth in subsection B of § 58.1-603 or subsection B of § 58.1-604, the amount to be remitted by such dealer shall increase and shall equal five and one-half percent of his wholesale purchases made on or after July 1, 2003, for sale at retail from vending machines. Beginning July 1, 2043, in such localities such dealer shall remit an amount equal to five percent of such wholesale purchases.
B. Notwithstanding the provisions of §§ 58.1-605 and 58.1-606, dealers making sales of tangible personal property through vending machines shall report and remit the one percent local sales and use tax computed as provided in subsection A of this section.
C. The provisions of subsections A and B of this section shall not be applicable to vending machine operators all of whose machines are under contract to nonprofit organizations. Such operators shall report only the gross receipts from machines selling items for more than ten cents and shall be required to remit an amount based on a percentage of their remaining gross sales established by the Tax Commissioner to take into account the inclusion of sales tax.
D. Notwithstanding any other provisions in this section or § 58.1-628, when the Tax Commissioner determines that it is impractical to collect the tax in the manner provided by those sections, such dealer shall be required to remit an amount based on a percentage of gross receipts which takes into account the inclusion of the sales tax.
E. The provisions of this section shall not be applicable to any dealer who fails to maintain records satisfactory to the Tax Commissioner. A dealer making sales of tangible personal property through vending machines shall obtain a certificate of registration under § 58.1-613 in relevant form for each county or city in which he has machines.
§ 58.1-627. State tax on transactions greater than five dollars.
The following brackets of prices shall be used for the collection of the tax
imposed by this chapter:
$0.00 to $0.14 no tax .15 to .42 1¢ tax .43 to .71 2¢ tax .72 to .99 3¢ tax 1.00 to 1.28 4¢ tax 1.29 to 1.57 5¢ tax 1.58 to 1.85 6¢ tax 1.86 to 2.14 7¢ tax 2.15 to 2.42 8¢ tax 2.43 to 2.71 9¢ tax 2.72 to 2.99 10¢ tax 3.00 to 3.28 11¢ tax 3.29 to 3.57 12¢ tax 3.58 to 3.85 13¢ tax 3.86 to 4.14 14¢ tax 4.15 to 4.42 15¢ tax 4.43 to 4.71 16¢ tax 4.72 to 5.00 17¢ tax
Except in the localities set forth in subsection B of § 58.1-603 or subsection
B of § 58.1-604,On on transactions over greater than five dollars, the state
tax shall be computed at three and one-half percent through 12:00 p.m. on
June 30, 2003, and at a rate of four percent beginning July 1, 2003, one-half
cent or more being treated as one cent. In the localities set forth in
subsection B of § 58.1-603 or subsection B of § 58.1-604, on transactions
greater than five dollars, the state tax shall be computed at three
and one-half percent through 12:00 p.m. on June 30, 2003, four and one-half
percent beginning July 1, 2003 through 12:00 p.m. on June 30, 2043, and at a
rate of four percent beginning July 1, 2043, one-half cent or more being
treated as one cent.
If a dealer can show to the satisfaction of the Tax Commissioner that more than eighty-five percent of the total dollar volume of his gross taxable sales during the taxable month was from individual sales at prices of ten cents or less each, and that he was unable to adjust his prices in such manner as to prevent the economic incidence of the sales tax from falling on him, the Tax Commissioner shall determine the proper tax liability of the dealer based on that portion of the dealer's gross taxable sales which was from sales at prices of eleven cents or more.
§ 58.1-628. Combined state and local tax on transactions greater than five dollars.
The following brackets of prices shall be used for the collection of the
combined state and local tax:
$0.00 to $0.11 no tax .12 to .33 1¢ tax .34 to .55 2¢ tax .56 to .77 3¢ tax .78 to .99 4¢ tax 1.00 to 1.22 5¢ tax 1.23 to 1.44 6¢ tax 1.45 to 1.66 7¢ tax 1.67 to 1.88 8¢ tax 1.89 to 2.11 9¢ tax 2.12 to 2.33 10¢ tax 2.34 to 2.55 11¢ tax 2.56 to 2.77 12¢ tax 2.78 to 2.99 13¢ tax 3.00 to 3.22 14¢ tax 3.23 to 3.44 15¢ tax 3.45 to 3.66 16¢ tax 3.67 to 3.88 17¢ tax 3.89 to 4.11 18¢ tax 4.12 to 4.33 19¢ tax 4.34 to 4.55 20¢ tax 4.56 to 4.77 21¢ tax 4.78 to 5.00 22¢ tax
Except in the localities set forth in subsection B of § 58.1-603 or subsection
B of § 58.1-604,On on transactions over greater than five dollars, the combined
state and local tax shall be computed at four and one-half percent through
12:00 p.m. on June 30, 2003, and at a rate of five percent beginning July 1,
2003, one one-half cent or more being treated as one cent. In the localities
set forth in subsection B of § 58.1-603 or subsection B of § 58.1-604, on
transactions greater than five dollars, the combined state and local tax shall
be computed at four and one-half percent through 12:00 p.m. on June 30, 2003,
five and one-half percent beginning July 1, 2003, through 12:00 p.m.
on June 30, 2043, and at a rate of five percent beginning July 1, 2043,
one-half cent or more being treated as one cent.
The foregoing bracket system shall not relieve the dealer from the duty and
liability to remit an amount equal to four and one-half percent of his gross taxable
sales as provided in this chapter. If the a dealer, however, can show to the
satisfaction of the Tax Commissioner that more than eighty-five percent of the
total dollar volume of his gross taxable sales during the taxable month was
from individual sales at prices of ten cents or less each and that he was
unable to adjust his prices in such manner as to prevent the economic incidence
of the sales tax from falling on him, the Tax Commissioner shall determine the
proper tax liability of the dealer based on that portion of the dealer's gross
taxable sales which was from sales at prices of eleven cents or more.
§ 58.1-638. Disposition of state sales and use tax revenue; Transportation Trust Fund; localities' share; Game Protection Fund.
A. The Comptroller shall designate a specific revenue code number for all the state sales and use tax revenue collected under the preceding sections of this chapter.
1. The sales and use tax revenue generated by the one-half percent sales and use tax increase enacted by the 1986 Special Session of the General Assembly shall be paid, in the manner hereinafter provided in this section, to the Transportation Trust Fund as defined in § 33.1-23.03:1. Of the funds paid to the Transportation Trust Fund, an aggregate of 4.2 percent shall be set aside as the Commonwealth Port Fund as provided in this section; an aggregate of 2.4 percent shall be set aside as the Commonwealth Airport Fund as provided in this section; and an aggregate of 14.5 percent in fiscal year 1998-1999 and 14.7 percent in fiscal year 1999-2000 and thereafter shall be set aside as the Commonwealth Mass Transit Fund as provided in this section. The Fund's share of such net revenue shall be computed as an estimate of the net revenue to be received into the state treasury each month, and such estimated payment shall be adjusted for the actual net revenue received in the preceding month. All payments shall be made to the Fund on the last day of each month.
2. There is hereby created in the Department of the Treasury a special nonreverting fund which shall be a part of the Transportation Trust Fund and which shall be known as the Commonwealth Port Fund.
a. The Commonwealth Port Fund shall be established on the books of the Comptroller and the funds remaining in such Fund at the end of a biennium shall not revert to the general fund but shall remain in the Fund. Interest earned on such funds shall remain in the Fund and be credited to it. Funds may be paid to any authority, locality or commission for the purposes hereinafter specified.
b. The amounts allocated pursuant to this section shall be allocated by the Commonwealth Transportation Board to the Board of Commissioners of the Virginia Port Authority to be used to support port capital needs and the preservation of existing capital needs of all ocean, river, or tributary ports within the Commonwealth.
c. Commonwealth Port Fund revenue shall be allocated by the Board of Commissioners to the Virginia Port Authority in order to foster and stimulate the flow of maritime commerce through the ports of Virginia, including but not limited to the ports of Richmond, Hopewell and Alexandria.
3. There is hereby created in the Department of the Treasury a special nonreverting fund which shall be part of the Transportation Trust Fund and which shall be known as the Commonwealth Airport Fund. The Commonwealth Airport Fund shall be established on the books of the Comptroller and any funds remaining in such Fund at the end of a biennium shall not revert to the general fund but shall remain in the Fund. Interest earned on the funds shall be credited to the Fund. The funds so allocated shall be allocated by the Commonwealth Transportation Board to the Virginia Aviation Board. The funds shall be allocated by the Virginia Aviation Board to any Virginia airport which is owned by the Commonwealth, a governmental subdivision thereof, or a private entity to which the public has access for the purposes enumerated in § 5.1-2.16, or is owned or leased by the Metropolitan Washington Airports Authority (MWAA), as follows:
Any new funds in excess of $12.1 million which are available for allocation by the Virginia Aviation Board from the Commonwealth Transportation Fund, shall be allocated as follows: sixty percent to MWAA, up to a maximum annual amount of two million dollars, and forty percent to air carrier airports as provided in subdivision A 3 a. Except for adjustments due to changes in enplaned passengers, no air carrier airport sponsor, excluding MWAA, shall receive less funds identified under subdivision A 3 a than it received in fiscal year 1994-1995.
Of the remaining amount:
a. Forty percent of the funds shall be allocated to air carrier airports, except airports owned or leased by MWAA, based upon the percentage of enplanements for each airport to total enplanements at all air carrier airports, except airports owned or leased by MWAA. No air carrier airport sponsor, however, shall receive less than $50,000 nor more than $2 million per year from this provision.
b. Forty percent of the funds shall be allocated by the Aviation Board for air carrier and reliever airports on a discretionary basis, except airports owned or leased by MWAA.
c. Twenty percent of the funds shall be allocated by the Aviation Board for general aviation airports on a discretionary basis.
4. There is hereby created in the Department of the Treasury a special nonreverting fund which shall be a part of the Transportation Trust Fund and which shall be known as the Commonwealth Mass Transit Fund.
a. The Commonwealth Mass Transit Fund shall be established on the books of the Comptroller and any funds remaining in such Fund at the end of the biennium shall not revert to the general fund but shall remain in the Fund. Interest earned on such funds shall be credited to the Fund. Funds may be paid to any local governing body, transportation district commission, or public service corporation for the purposes hereinafter specified.
b. The amounts allocated pursuant to this section shall be used to support the public transportation administrative costs and the costs borne by the locality for the purchase of fuels, lubricants, tires and maintenance parts and supplies for public transportation at a state share of eighty percent in 2002 and ninety-five percent in 2003 and succeeding years. These amounts may be used to support up to ninety-five percent of the local or nonfederal share of capital project costs for public transportation and ridesharing equipment, facilities, and associated costs. Capital costs may include debt service payments on local or agency transit bonds. The term "borne by the locality" means the local share eligible for state assistance consisting of costs in excess of the sum of fares and other operating revenues plus federal assistance received by the locality.
c. Commonwealth Mass Transit Fund revenue shall be allocated by the Commonwealth Transportation Board as follows:
(1) Funds for special programs, which shall include ridesharing, experimental transit, and technical assistance, shall not exceed 1.5 percent of the Fund.
(2) The Board may allocate these funds to any locality or planning district commission to finance up to eighty percent of the local share of all costs associated with the development, implementation, and continuation of ridesharing programs.
(3) Funds allocated for experimental transit projects may be paid to any local governing body, transportation district commission, or public corporation or may be used directly by the Department of Rail and Public Transportation for the following purposes:
(a) To finance up to ninety-five percent of the capital costs related to the development, implementation and promotion of experimental public transportation and ridesharing projects approved by the Board.
(b) To finance up to ninety-five percent of the operating costs of experimental mass transportation and ridesharing projects approved by the Board for a period of time not to exceed twelve months.
(c) To finance up to ninety-five percent of the cost of the development and implementation of any other project designated by the Board where the purpose of such project is to enhance the provision and use of public transportation services.
d. Funds allocated for public transportation promotion and operation studies may be paid to any local governing body, planning district commission, transportation district commission, or public transit corporation, or may be used directly by the Department of Rail and Public Transportation for the following purposes and aid of public transportation services:
(1) At the approval of the Board to finance a program administered by the Department of Rail and Public Transportation designed to promote the use of public transportation and ridesharing throughout Virginia.
(2) To finance up to fifty percent of the local share of public transportation operations planning and technical study projects approved by the Board.
e. At least 73.5 percent of the Fund shall be distributed to each transit property in the same proportion as its operating expenses bear to the total statewide operating expenses and shall be spent for the purposes specified in subdivision 4 b.
f. The remaining twenty-five percent shall be distributed for capital purposes on the basis of ninety-five percent of the nonfederal share for federal projects and ninety-five percent of the total costs for nonfederal projects. In the event that total capital funds available under this subdivision are insufficient to fund the complete list of eligible projects, the funds shall be distributed to each transit property in the same proportion that such capital expenditure bears to the statewide total of capital projects.
g. There is hereby created in the Department of the Treasury a special nonreverting fund known as the Commonwealth Transit Capital Fund. The Commonwealth Transit Capital Fund shall be part of the Commonwealth Mass Transit Fund. The Commonwealth Transit Capital Fund subaccount shall be established on the books of the Comptroller and consist of such moneys as are appropriated to it by the General Assembly and of all donations, gifts, bequests, grants, endowments, and other moneys given, bequeathed, granted, or otherwise made available to the Commonwealth Transit Capital Fund. Any funds remaining in the Commonwealth Transit Capital Fund at the end of the biennium shall not revert to the general fund, but shall remain in the Commonwealth Transit Capital Fund. Interest earned on funds within the Commonwealth Transit Capital Fund shall remain in and be credited to the Commonwealth Transit Capital Fund. Proceeds of the Commonwealth Transit Capital Fund may be paid to any political subdivision, another public entity created by an act of the General Assembly, or a private entity as defined in § 56-557 and for purposes as enumerated in subdivision 4c of § 33.1-269 or expended by the Department of Rail and Public Transportation for the purposes specified in this subdivision. Revenues of the Commonwealth Transit Capital Fund shall be used to support capital expenditures involving the establishment, improvement, or expansion of public transportation services through specific projects approved by the Commonwealth Transportation Board. Projects financed by the Commonwealth Transit Capital Fund shall receive local, regional or private funding for at least twenty percent of the nonfederal share of the total project cost.
5. Funds for Metro shall be paid by the Northern Virginia Transportation Commission (NVTC) to the Washington Metropolitan Area Transit Authority (WMATA) and be a credit to the Counties of Arlington and Fairfax and the Cities of Alexandria, Falls Church and Fairfax in the following manner:
a. Local obligations for debt service for WMATA rail transit bonds apportioned to each locality using WMATA's capital formula shall be paid first by NVTC. NVTC shall use ninety-five percent state aid for these payments.
b. The remaining funds shall be apportioned to reflect WMATA's allocation formulas by using the related WMATA-allocated subsidies and relative shares of local transit subsidies. Capital costs shall include twenty percent of annual local bus capital expenses. Hold harmless protections and obligations for NVTC's jurisdictions agreed to by NVTC on November 5, 1998, shall remain in effect.
Appropriations from the Commonwealth Mass Transit Fund are intended to provide a stable and reliable source of revenue as defined by Public Law 96-184.
B. The sales and use tax revenue generated by a one percent sales and use tax shall be distributed among the counties and cities of this Commonwealth in the manner provided in subsections C and D through 12:00 p.m. on June 30, 2003. Beginning July 1, 2003, the sales and use tax revenue generated by a one and one-half percent sales and use tax shall be distributed among such counties and cities as provided in subsections C and D.
C. The localities' share of the net revenue distributable under this section among the counties and cities shall be apportioned by the Comptroller and distributed among them by warrants of the Comptroller drawn on the Treasurer of Virginia as soon as practicable after the close of each month during which the net revenue was received into the state treasury. The distribution of the localities' share of such net revenue shall be computed with respect to the net revenue received into the state treasury during each month, and such distribution shall be made as soon as practicable after the close of each such month.
D. The net revenue so distributable among the counties and cities shall be apportioned and distributed upon the basis as certified to the Comptroller by the Department of Education, of the number of children in each county and city according to the most recent statewide census of school population taken by the Department of Education pursuant to § 22.1-284, as adjusted in the manner hereinafter provided. No special school population census, other than a statewide census, shall be used as the basis of apportionment and distribution except that in any calendar year in which a statewide census is not reported, the Department of Education shall adjust such school population figures by the same percent of annual change in total population estimated for each locality by The Center for Public Service. The revenue so apportionable and distributable is hereby appropriated to the several counties and cities for maintenance, operation, capital outlays, debt and interest payments, or other expenses incurred in the operation of the public schools, which shall be considered as funds raised from local resources. In any county, however, wherein is situated any incorporated town constituting a school division, the county treasurer shall pay into the town treasury for maintenance, operation, capital outlays, debt and interest payments, or other expenses incurred in the operation of the public schools, the proper proportionate amount received by him in the ratio that the school population of such town bears to the school population of the entire county. If the school population of any city or of any town constituting a school division is increased by the annexation of territory since the last preceding school population census, such increase shall, for the purposes of this section, be added to the school population of such city or town as shown by the last such census and a proper reduction made in the school population of the county or counties from which the annexed territory was acquired.
E. Beginning July 1, 2000, of the remaining sales and use tax revenue, the revenue generated by a two percent sales and use tax, up to an annual amount of $13 million, collected from the sales of hunting equipment, auxiliary hunting equipment, fishing equipment, auxiliary fishing equipment, wildlife-watching equipment, and auxiliary wildlife-watching equipment in Virginia, as estimated by the most recent U.S. Department of the Interior, Fish and Wildlife Service and U.S. Department of Commerce, Bureau of the Census National Survey of Fishing, Hunting, and Wildlife-Associated Recreation, shall be paid into the Game Protection Fund established under § 29.1-101 and shall be used, in part, to defray the cost of law enforcement. Not later than thirty days after the close of each quarter, the Comptroller shall transfer to the Game Protection Fund the appropriate amount of collections to be dedicated to such Fund. At any time that the balance in the Capital Improvement Fund, established under § 29.1-101.1, is equal to or in excess of $35 million, any portion of sales and use tax revenues that would have been transferred to the Game Protection Fund, established under § 29.1-101, in excess of the net operating expenses of the Board, after deduction of other amounts which accrue to the Board and are set aside for the Game Protection Fund, shall remain in the general fund until such time as the balance in the Capital Improvement Fund is less than $35 million.
F. If errors are made in any distribution, or adjustments are otherwise necessary, the errors shall be corrected and adjustments made in the distribution for the next quarter or for subsequent quarters.
G. The sales and use tax revenue generated pursuant to subsection B of § 58.1-603 and subsection B of § 58.1-604, both subsections becoming effective July 1, 2003, shall be deposited into the Northern Virginia Transportation District Fund pursuant to § 58.1-815.1 and used solely for transportation purposes as provided in § 58.1-815.1. The revenue deposited to such fund shall be the gross revenue generated and collected from the additional taxes provided under subsection B of § 58.1-603 and subsection B of § 58.1-604, less the applicable portion of any refunds to taxpayers. Such revenue shall be considered funds raised from local sources.
GH. The term "net revenue," as used in this section, means the gross revenue
received into the general fund or the Transportation Trust Fund of the state treasury under the
preceding sections of this chapter, less refunds to taxpayers.
§ 58.1-815.1. Northern Virginia Transportation District Fund.
A. There is hereby created in the Department of the Treasury a special
nonreverting fund which shall be a part of the Transportation Trust Fund and
which shall be known as the Northern Virginia Transportation District Fund,
consisting of transfers pursuant to § 58.1-816 of annual collections of the
state recordation taxes attributable to the Cities of Alexandria, Fairfax, Falls
Church, Manassas, and Manassas Park and the Counties of Arlington, Fairfax, Loudoun,
and Prince William; however, this dedication shall not affect the local
recordation taxes under §§ subsection B of § 58.1-802 B, and § 58.1-814. The
Fund shall also consist of transfers pursuant to subsection G of § 58.1-638 of
revenues from sales and use taxes imposed pursuant to subsection B of §
58.1-603 and subsection B of § 58.1-604. The Fund shall also include any
public rights-of-way use fees appropriated by the General Assembly; any state or local revenues, including but not limited to, any
funds distributed pursuant to §§ 33.1-23.3, 33.1-23.4 or § 33.1-23.5:1, which
may be deposited into the Fund pursuant to a contract between a jurisdiction participating in
the Northern Virginia Transportation District Program and the Commonwealth Transportation
Board; and any other funds as may be appropriated by the General Assembly from
time to time and designated for this Fund and all interest, dividends and
appreciation which may accrue thereto. Any moneys remaining in the Fund at the
end of a biennium shall not revert to the general fund, but shall remain in the
Fund, subject to the determination by the Commonwealth Transportation Board or
the Northern Virginia Transportation Authority that a Category 2, 3, or 4, or 5
project or projects may be funded.
B. Allocations from this Fund may be paid (i) to any authority, locality or
commission for the purposes of paying the costs of the Northern Virginia
Transportation District Program which consists of the following: the Fairfax
County Parkway, Route 234 Bypass/Route 659 Relocated, Metro Capital
Improvements, including the Franconia-Springfield Metrorail Station and new
rail car purchases, Route 7 improvements in Loudoun County and Fairfax County,
Route 50/Courthouse Road interchange improvements in Arlington County, the
Route 28/Route 625 interchange improvements in Loudoun County, Metrorail
capital improvements attributable to the City of Alexandria, including the King
Street Metrorail station access, Metrorail capital improvements attributable to
Arlington County, including Ballston Station improvements, Route 15 safety
improvements in Loudoun County, Route 1/Route 123 interchange improvements in
Prince William County, Lee Highway improvements in the City of Fairfax, Route
123 improvements in Fairfax County, Telegraph Road improvements in Fairfax
County, Route 1/Route 234 interchange improvements in Prince William County,
Potomac-Rappahannock Transportation Commission bus replacement program, and
Dulles Corridor Enhanced Transit programProgram (locality share), I-66
improvements and rail extension, I-95/I-395 improvements and transit
improvements, Route 1 improvements, Route 28 improvements, I-495 improvements
and transit improvements, Tri-County/Loudoun Parkway, Metrorail infrastructure replacement
program, urban system improvements, secondary system improvements (including
unpaved roads), Columbia Pike/Route 7 transit improvements, rail safety
improvements, and VRE new railcar purchase and (ii) for Category 4 Category 5
projects as provided in § 2 of the act or acts authorizing the issuance of
Bonds for the Northern Virginia Transportation District Program.
C. On or before July 15, 1994, $19 million shall be transferred to the Fund. Such transfer shall be made by the issuance of a treasury loan at no interest in the amount of $19 million in the event such an amount is not included for the Fund in the general appropriation act enacted by the 1994 Session of the General Assembly. Such treasury loan shall be repaid from the Commonwealth's portion of the state recordation tax imposed by Chapter 8 (§ 58.1-800 et seq.) of Title 58.1 designated for the Fund by this section and § 58.1-816.
2. That § 2 of Chapter 391 of the Acts of Assembly of 1993, as amended by Chapters 470 and 597 of the Acts of Assembly of 1994, Chapters 740 and 761 of the Acts of Assembly of 1998, and Chapter 538 of the Acts of Assembly of 1999, is amended and reenacted as follows:
§ 2. The Commonwealth Transportation Board is hereby authorized, by and with
the consent of the Governor, to issue, pursuant to the provisions of §§
33.1-267 through 33.1-295, at one time or from time to time, bonds of the Commonwealth to
be designated "Commonwealth of Virginia Transportation Contract Revenue Bonds, Series
.....," in an aggregate principal amount not exceeding $471,200,000
$2,696,200,000 to finance the cost
of the projects plus an amount for the issuance costs, capitalized interest, reserve funds, and
other financing expenses (the "Bonds"). The proceeds of the Bonds shall be used exclusively for
the purpose of providing funds, with any other available funds, for paying the
costs incurred or to be incurred for construction or funding of the projects
which comprise the Northern Virginia Transportation District Program as
hereinafter defined and as established in Article 5 (§ 33.1-267 et seq.) of
Chapter 3 of Title 33.1, consisting of environmental and engineering studies,
rights-of-way acquisition, improvements to all modes of transportation,
construction and related improvements (the "projects"). Such costs may include
the payment of interest on the Bonds for a period during construction and not
exceeding one year after completion of construction of the projects.
The projects shall be classified as Category 1, Category 2, Category 3, and
Category 4, and Category 5 projects, each category being subject to different
preconditions. Bonds to finance the cost of Category 1, and Category 3, and
Category 4 projects may be issued by the Commonwealth Transportation Board.
Bonds to finance the cost of Category 2 projects may be issued by the Commonwealth
Transportation Board only if the aggregate principal amount of $466,200,000 in
bonds has been issued to finance the cost of Category 1 and Category 3
projects. Category 4 5 projects shall not be financed through the issuance of
bonds; however, after all Bonds authorized have been issued, then to the extent
the Northern Virginia Transportation District Fund contains amounts in excess of the
amount needed to pay annual debt service on such Bonds in a particular fiscal year, such
excess amounts may be expended to pay the cost of the work identified as
Category 4 5 projects.
The projects, and the amount of bonds authorized to be issued for each such project, are as follows and constitute the Northern Virginia Transportation District Program:
Category 1 projects Bond amount
Metro Capital Improvements, including
the Franconia-Springfield Metrorail Station $85,600,000
Fairfax County Parkway $87,000,000
Route 234 Bypass $73,400,000
Route 7 improvements between Route 15 and
Route 28 in Loudoun County $15,000,000
Total $261,000,000
Category 2 projects consist of the Route 234 Bypass/Route 28 interchange improvements in Prince William County, in the amount of $5,000,000.
Category 3 projects Bond amount
Route 50/Courthouse Road interchange $10,000,000
Fairfax County Parkway -- Partially-funded segments between Route 1 and Route 7 $50,000,000
Route 234 Bypass from Route 28 to Route 234 $15,300,000
Route 28/Route 625 interchange $7,900,000
Metrorail Capital Improvements attributable to the City of Alexandria, including the King Street Metrorail station access $8,600,000
Metrorail Capital Improvements, including new rail car purchases $29,300,000
Route 15 Safety Improvements Leesburg Town Line to Potomac River $10,100,000
Route1/Route123 Interchange $8,200,000
LeeHighwayImprovementsCityofFairfax $3,100,000
Route 123 Widening Occoquan River to Lee Chapel Road $27,000,000
Dulles CorridorEnhancedTransit Program $6,000,000
Route 7 Improvements-Loudoun County Line to Reston Parkway $10,000,000
Route 7 Improvements-Reston Parkway to Dulles Toll Road $3,000,000
TelegraphRoadImprovements-S.Kings Highway to Beulah St. $5,000,000
Route1/Route234 Interchange $4,000,000
Potomac-Rappahannock Transportation Commission Bus Replacement Program $1,500,000
Metrorail Capital Improvements attributable to Arlington County, including Ballston Station improvements $6,200,000
Total $205,200,000
The Commonwealth Transportation Board shall only issue the bonds for Category 3 projects in an amount or amounts necessary to expedite or complete the Category 3 projects if the following conditions are satisfied: (i) at least two of the jurisdictions participating in the Northern Virginia Transportation District Program have entered into a contract pursuant to § 58.1-815.1 and (ii) the governing bodies of at least five of the jurisdictions participating in the Northern Virginia Transportation District Program and comprising a majority of the population of the jurisdictions participating in such Program have adopted resolutions endorsing the proposed sale or sales of bonds to support the Category 3 projects. Such contracts and resolutions shall remain in force so long as any debts or obligations for Category 3 projects remain outstanding.
Category 4 projects Bond amount
Dulles Corridor Transit (locality share) $300,000,000
I-66 Improvements and Rail Extension $300,000,000
I-95/I-395 Improvements and Transit
Improvements $300,000,000
Route 1 Improvements $100,000,000
Route 28 Improvements $50,000,000
I-495 Improvements and Transit Improvements $200,000,000
Fairfax County Parkway $150,000,000
Tri-County/Loudoun Parkway $100,000,000
VRE New Railcar Purchase $50,000,000
Route 234 Bypass/Route 659 Relocated $50,000,000
Metrorail Infrastructure Replacement Program $200,000,000
Secondary System Improvements (including
unpaved roads) $150,000,000
Urban System Improvements $90,000,000
Route 7 Improvements Loudoun and Fairfax $100,000,000
Columbia Pike/Route 7 Transit Improvements $75,000,000
Rail Safety Improvements $10,000,000
Total $2,225,000,000
Bond proceeds for Category 4 Secondary System Improvements (including unpaved roads) shall be allocated on the basis of population of those localities in subsection A of § 58.1-815.1 that receive allocations of funds for secondary system highways pursuant to § 33.1-23.4, as such populations are determined by the 2000 U.S. Census. Bond proceeds allocated for Urban System Improvements shall be allocated on the basis of population of (i) those localities in subsection A of § 58.1-815.1 that receive allocations of funds for urban system highways pursuant to § 33.1-23.3, and (ii) those towns situated within those localities described in clause (i) that receive allocations of funds for urban system highways pursuant to § 33.1-23.3, as such populations are determined by the 2000 U.S. Census.
The work identified as Category 4 5 projects to be funded from the Northern
Virginia Transportation District Fund, to the extent there are sums in excess
of the amount needed to pay debt service on the Bonds in a given fiscal year,
is as follows:
Category 4 5 projects
To the extent that the sales and use tax revenues deposited into the Northern Virginia Transportation District Fund pursuant to subsection G of § 58.1-638 exceed the amount needed to pay annual debt service on bonds issued to support Category 4 projects in any particular fiscal year, the Commonwealth Transportation Board may allocate such funds subject to the following conditions: (i) fifteen percent of such funds shall be allocated to transit operational costs; (ii) any remaining funds shall be allocated to specific Category 4 projects provided that the Board determines such allocations will materially advance the construction of such Category 4 projects; and (iii) any remaining funds shall be allocated to fund other transit, primary, urban, or secondary project or projects.
Such To the extent that all other deposits into the Northern Virginia
Transportation District Fund exceed the amount necessary to pay annual debt service on bonds issued to
support Category 1, Category 2, and Category 3 projects, the Commonwealth
Transportation Board shall allocate such funds to Category 5 projects as may be
concurred in by the local jurisdictions participating in the Northern Virginia Transportation District
Program, as evidenced by resolutions adopted by an affirmative vote of each of
the jurisdictions participating in the Northern Virginia Transportation
District Program and subject to such guidelines and conditions as may be
promulgated by the Commonwealth Transportation Board.
The Bonds shall be issued by the Commonwealth Transportation Board and sold through the Treasury Board, which is hereby designated the sales and paying agent of the Commonwealth Transportation Board with respect to the Bonds. The Treasury Board's duties shall include the approval of the terms and structure of the Bonds. In the event the aggregate principal amount of the issuance, for the projects and amounts authorized by the 1994 amendments to Chapter 391 of the Acts of Assembly of 1993, is less than $127,000,000, the Commonwealth Transportation Board shall cause each Category 1 project to be shared in the reduced issuance by reducing the proceeds of the Bonds for each of the Category 1 projects on a pro rata basis.
3. That it shall be the duty of the regular election officers of this Commonwealth conducting the election directed by law to be held on the Tuesday after the first Monday in November 2002 at the places appointed for holding the same, to open a poll on such day and take the sense of the qualified voters of the Commonwealth upon the ratification or rejection of the additional statewide one-half of one percent sales and use tax as provided in subsection A of § 58.1-603 and subsection A of § 58.1-604 of this act.
The ballot shall contain the following question:
"Question: Shall an additional state sales and use tax of one-half percent be levied in all jurisdictions of the Commonwealth beginning July 1, 2003, in accordance with subsection A of § 58.1-603 and subsection A of § 58.1-604 of the Code of Virginia, with the revenues distributed to counties and cities solely for expenses incurred in the operation of public schools and capital projects for public schools as provided in Chapter (. . .) of the Acts of Assembly of 2002?
[ ] Yes
[ ] No"
4. That it shall be the duty of the regular election officers in Arlington County, Fairfax County, Loudoun County, Prince William County, the City of Alexandria, the City of Fairfax, the City of Falls Church, the City of Manassas, and the City of Manassas Park conducting the election directed by law to be held on the Tuesday after the first Monday in November 2002 at the places appointed for holding the same, to open a poll on such day and take the sense of the qualified voters of such counties and cities upon the ratification or rejection of the additional tax in those localities as provided in subsection B of § 58.1-603 and subsection B of § 58.1-604 of this act.
The ballot shall contain the following question:
"Question: Shall an additional state sales and use tax of one-half percent be levied in Arlington County, Fairfax County, Loudoun County, Prince William County, the City of Alexandria, the City of Fairfax, the City of Falls Church, the City of Manassas, and the City of Manassas Park beginning July 1, 2003, in accordance with subsection B of § 58.1-603 and subsection B of § 58.1-604 of the Code of Virginia, with the revenues to be used solely for transportation projects and transportation programs as specified in Chapter (. . .) of the Acts of Assembly of 2002?
[ ] Yes
[ ] No"
5. That the Department of Taxation shall promulgate all necessary and reasonable regulations to govern the administration of the additional taxes provided under this act, including, but not limited to, a bracket system for the collection of taxes in the Commonwealth on transactions of five dollars or less.
6. That the revenues dedicated to transportation purposes pursuant to subsection G of § 58.1-638 shall not be used to calculate or reduce the share of local, federal, and state revenues otherwise available to the localities in the counties and cities set forth in subsection B of § 58.1-603 and subsection B of § 58.1-604 or to the Northern Virginia construction district.
7. That, as a condition of the financial assistance for transportation projects located in a city or county set forth in subsection B of § 58.1-603 or subsection B of § 58.1-604, as such financial assistance is provided under this act, such city or county shall not reduce its local contribution to Metrorail capital improvements below the amount it contributed for such improvements in its operating year that began in calendar year 2001.
8. That the third enactment of this act shall be effective July 1, 2002. The additional one-half of one percent sales and use tax imposed pursuant to subsection A of § 58.1-603 and subsection A of § 58.1-604, and the provisions related thereto under this act, shall be effective on July 1, 2003, and only if a majority of those voting at the election and upon the question described in the third enactment of this act vote in the affirmative upon such question.
9. That the fourth enactment of this act shall be effective July 1, 2002. The additional one-half of one percent sales and use tax imposed pursuant to subsection B of § 58.1-603 and subsection B of § 58.1-604, and the provisions related thereto under this act including the provisions of the second enactment, shall be effective on July 1, 2003, and only if a majority of those voting at the election and upon the question described in the fourth enactment of this act vote in the affirmative upon such question. For purposes of this enactment, "a majority of those voting at the election" means a majority of those voting in the entire region constituted by the localities specified in the fourth enactment of this act, and does not require a majority of those voting in any individual locality.
10. That Article 22 (§ 58.1-540 et seq.) of Chapter 3 of Title 58.1 of the Code of Virginia is repealed effective July 1, 2003, provided that the additional tax described in the fourth enactment of this act is imposed effective July 1, 2003.
11. That if any clause, sentence, paragraph, section, or part of this act or the application thereof to any person, entity, or circumstance is adjudged invalid by any court of competent jurisdiction, such judgment shall not affect the validity of the remainder hereof but shall be confined to the clause, sentence, paragraph, section, or part hereof directly involved in the controversy in which such judgment shall have been rendered, and to this end the provisions of this act are severable.