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2004 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-608.3 of the Code of Virginia is amended and reenacted as follows:
§ 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 multijurisdictional 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,
or at least 180,000 but no more than 185,000. 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 50 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 50 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 this title, 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 subsection D of § 58.1-638 D on the basis of 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, or (vi) on or after July 1, 2004, but before July 1,
2007, 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 35 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.