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ACROSS SESSIONS
- Subject Index: Since 1995
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Developed and maintained by the Division of Legislative Automated Systems.
2005 SESSION
053070384Be it enacted by the General Assembly of Virginia:
1. That § 3.1-1111 as it is currently effective, §§ 15.2-1104.1, 15.2-1636.20, 30-133, 46.2-623, 58.1-3 58.1-303, 58.1-320, 58.1-321, 58.1-324, 58.1-435, 58.1-438.1, 58.1-439, 58.1-439.4, 58.1-439.6, 58.1-439.9, 58.1-439.10, 58.1-439.11, 58.1-439.13, 58.1-439.14, 58.1-490, 58.1-512, 58.1-602, 58.1-603, 58.1-604, 58.1-609.10, 58.1-610, 58.1-612, 58.1-615, 58.1-623, 58.1-629, 58.1-901, 58.1-1720, 58.1-2401, 58.1-2402, 58.1-2405, 58.1-3506, 58.1-3506.1, as it shall become effective, §§ 58.1-3510.1, 58.1-3510.3, 58.1-3818, as it is currently effective and as it may become effective, 58.1-3912, as it is currently effective and as it shall become effective, §§ 59.1-280 and 63.2-2003 of the Code of Virginia are amended and reenacted, and that the Code of Virginia is amended by adding a section numbered 58.1-322.3, as follows:
§ 3.1-1111. Tobacco Indemnification and Community Revitalization Fund; tax credits for technology industries in tobacco-dependent localities.
A. (Effective until January 1, 2006) Money received by the
Commonwealth pursuant to the Master Settlement Agreement shall be deposited
into the state treasury subject to the special nonreverting funds established
by subsection B and by §§ 3.1-1109.1 and 32.1-360. However, in no case
shall the amount received by the Endowment and Fund be included in general fund
revenue calculations for purposes of subsection C of § 58.1-3524 and subsection
B of § 58.1-3536.
A. (Effective January 1, 2006) Money received by the Commonwealth pursuant to the Master Settlement Agreement shall be deposited into the state treasury subject to the special nonreverting funds established by subsection B and by §§ 3.1-1109.1 and 32.1-360.
B. There is created in the state treasury a special nonreverting fund to be known as the Tobacco Indemnification and Community Revitalization Fund. The Fund shall be established on the books of the Comptroller. Subject to the sale of all or any portion of the Commission Allocation, 50 percent of the annual amount received by the Commonwealth from the Master Settlement Agreement shall be paid into the state treasury and credited to the Fund. In the event of such sale (i) the Commission Allocation shall be paid in accordance with the agreement for the period of sale and (ii) the Fund shall receive the amounts withdrawn from the Endowment in accordance with § 3.1-1109.1. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purposes described in this chapter; however, starting with the fiscal year beginning July 1, 2000, through December 31, 2009, the Commission may deposit moneys from the Fund into the Technology Initiative in Tobacco-Dependent Localities Fund, established under § 58.1-439.15, for purposes of funding the tax credits provided in §§ 58.1-439.13 and 58.1-439.14 and the grants provided in § 58.1-439.17. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written authorization signed by the chairman of the Commission or his designee. The Fund shall also consist of other moneys received by the Commission, from any source, for the purpose of implementing the provisions of this chapter.
C. The obligations of the Commission shall not be a debt or grant or loan of credit of the Commonwealth of Virginia, and the Commonwealth shall not be liable thereon, nor shall such obligations be payable out of any funds other than those credited to the Fund.
§ 15.2-1104.1. Tax on admissions to charitable events.
A municipal corporation that generally levies an admissions
tax may, by ordinance, elect not to levy an admissions tax on admission to an
event, provided that the purpose of the event is solely to raise money for
charitable purposes and that the net
proceeds derived from the event will be transferred to an entity or entities
that are exempt from sales and use tax pursuant to § 58.1-609.11.
§ 30-133. Duties and powers generally.
A. The Auditor of Public Accounts shall audit all the accounts of every state department, officer, board, commission, institution or other agency handling any state funds. In the performance of such duties and the exercise of such powers he may employ the services of certified public accountants, provided the cost thereof shall not exceed such sums as may be available out of the appropriation provided by law for the conduct of his office.
B. The Auditor of Public Accounts shall review the information required in § 2.2-1501 to determine that state agencies are providing and reporting appropriate information on financial and performance measures, and the Auditor shall review the accuracy of the management systems used to accumulate and report the results. The Auditor shall report annually to the General Assembly the results of such audits and make recommendations, if indicated, for new or revised accountability or performance measures to be implemented for the agencies audited.
C. The Auditor of Public Accounts shall prepare, by November 1, a summary of the results of all of the audits and other oversight responsibilities performed for the most recently ended fiscal year. The Auditor of Public Accounts shall present this summary to the Senate Finance, House Appropriations and House Finance Committees on the day the Governor presents to the General Assembly the Executive Budget in accordance with §§ 2.2-1508 and 2.2-1509 or at the direction of the respective Chairman of the Senate Finance, House Appropriations or House Finance Committees at one of their committee meetings prior to the meeting above.
D. (Effective until January 1, 2006) As part of his
normal oversight responsibilities, the Auditor of Public Accounts shall
incorporate into his audit procedures and processes a review process to ensure
that the Commonwealth's payments for qualifying vehicles, as defined in §
58.1-3523, are consistent with the provisions of §§ 58.1-3525 and 58.1-3526.
The Auditor of Public Accounts shall report to the Governor and the Chairman of
the Senate Finance Committee annually any material failure by a locality or the
Commonwealth to comply with the provisions of Chapter 35.1 (§ 58.1-3523 et
seq.) of Title 58.1.
D. (Effective January 1, 2006) As part of his
normal oversight responsibilities, the Auditor of Public Accounts shall
incorporate into his audit procedures and processes a review process to ensure
that the Commonwealth's payments to counties, cities, and towns under Chapter
35.1 (§ 58.1-3523 et seq.) of Title 58.1 are consistent with the provisions of
§ 58.1-3524. The Auditor of Public Accounts shall report to the Governor and
the Chairman of the Senate Finance Committee annually any material failure by a
locality or the Commonwealth to comply with the provisions of Chapter 35.1 of
Title 58.1.
ED. The
Auditor of Public Accounts when called upon by the Governor shall examine the
accounts of any institution maintained in whole or in part by the Commonwealth
and, upon the direction of the Comptroller, shall examine the accounts of any
officer required to settle his accounts with him; and upon the direction of any
other state officer at the seat of government he shall examine the accounts of
any person required to settle his accounts with such officer.
FE.
Upon the written request of any member of the General Assembly, the Auditor of
Public Accounts shall furnish the requested information and provide technical
assistance upon any matter requested by such member.
GF. In
compliance with the provisions of the federal Single Audit Act Amendments of
1996, Public Law 104-156, the Joint Legislative Audit and Review Commission may
authorize the Auditor of Public Accounts to audit biennially the accounts pertaining
to federal funds received by state departments, officers, boards, commissions,
institutions or other agencies.
§ 46.2-623. Statements in application.
A. Every application for a certificate
of title shall contain (i) a statement of the applicant's title and of all
liens or encumbrances on the vehicle and the names and addresses of all persons
having any interest in the vehicle and the nature of every interest in the
vehicle; (ii) the Social Security number, if any, of the owner and, if the
application is in the name of an employer for a business vehicle, the
employer's identification number assigned by the United States Internal Revenue
Service; and (iii) a brief description of the vehicle to be registered,
including the name of the maker, the vehicle identification or serial number
and, when registering a new vehicle, the date of sale by the manufacturer or
dealer to the person first operating the vehicle.
B. Not later than July 15, 1998, the lessor of a
qualifying vehicle, as defined in § 58.1-3523, shall send a report to the
Department for each such qualifying vehicle it was leasing as of July 1, 1998,
and has leased between January 1, 1998, and June 30, 1998, containing (i) the
name and address of the lessee as it appears in the lease contract; (ii) the
social security number of the lessee; and (iii) the registration number of the
vehicle as described under Article 1 (§ 46.2-600 et seq.) of Chapter 6 of Title
46.2.
C. Beginning with August 1998, such lessor shall
send a monthly report to the Department, by the fifteenth day of the month or
such later day as may be prescribed in the guidelines promulgated under §
58.1-3532, listing any changes, additions or deletions to the information
provided under subsection B as of the last day of the preceding month.
D. The application shall contain such additional
information as may be required by the Department.
§ 58.1-3. Secrecy of information; penalties.
A. Except in accordance with a proper judicial order or as otherwise provided by law, the Tax Commissioner or agent, clerk, commissioner of the revenue, treasurer, or any other state or local tax or revenue officer or employee, or any person to whom tax information is divulged pursuant to § 58.1-2712.2, or any former officer or employee of any of the aforementioned offices shall not divulge any information acquired by him in the performance of his duties with respect to the transactions, property, including personal property, income or business of any person, firm or corporation. Such prohibition specifically includes any copy of a federal return or federal return information required by Virginia law to be attached to or included in the Virginia return. Any person violating the provisions of this section shall be guilty of a Class 2 misdemeanor. The provisions of this subsection shall not be applicable, however, to:
1. Matters required by law to be entered on any public assessment roll or book;
2. Acts performed or words spoken or published in the line of duty under the law;
3. Inquiries and investigations to obtain information as to the process of real estate assessments by a duly constituted committee of the General Assembly, or when such inquiry or investigation is relevant to its study, provided that any such information obtained shall be privileged;
4. The sales price, date of construction, physical dimensions or characteristics of real property, or any information required for building permits;
5. Copies of or information contained in an estate's probate tax return, filed with the clerk of court pursuant to § 58.1-1714, when requested by a beneficiary of the estate or an heir at law of the decedent;
6. Information regarding nonprofit entities exempt
from sales and use tax under § 58.1-609.11, when requested by the General
Assembly or any duly constituted committee of the General Assembly.
B. Nothing contained in this section shall be construed to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof or the publication of delinquent lists showing the names of taxpayers who are currently delinquent, together with any relevant information which in the opinion of the Department may assist in the collection of such delinquent taxes. This section shall not be construed to prohibit a local tax official from disclosing whether a person, firm or corporation is licensed to do business in that locality and divulging, upon written request, the name and address of any person, firm or corporation transacting business under a fictitious name. Additionally, notwithstanding any other provision of law, the commissioner of revenue is authorized to provide, upon written request stating the reason for such request, the Tax Commissioner with information obtained from local tax returns and other information pertaining to the income, sales and property of any person, firm or corporation licensed to do business in that locality.
C. Notwithstanding the provisions of subsection A or B or any other provision of this title, the Tax Commissioner is authorized to: (i) divulge tax information to any commissioner of the revenue, director of finance or other similar collector of county, city or town taxes who, for the performance of his official duties, requests the same in writing setting forth the reasons for such request; (ii) provide to the Commissioner of the Department of Social Services, upon written request, information on the amount of income reported by persons on their state income tax returns who have applied for public assistance or social services benefits as defined in § 63.2-100; (iii) provide to the chief executive officer of the designated student loan guarantor for the Commonwealth of Virginia, upon written request, the names and home addresses of those persons identified by the designated guarantor as having delinquent loans guaranteed by the designated guarantor; (iv) provide current address information upon request to state agencies and institutions for their confidential use in facilitating the collection of accounts receivable, and to the clerk of a circuit or district court for their confidential use in facilitating the collection of fines, penalties and costs imposed in a proceeding in that court; (v) provide to the Commissioner of the Virginia Employment Commission, after entering into a written agreement, such tax information as may be necessary to facilitate the collection of unemployment taxes and overpaid benefits; (vi) provide to the Alcoholic Beverage Control Board, upon entering into a written agreement, such tax information as may be necessary to facilitate the collection of state and local taxes and the administration of the alcoholic beverage control laws; (vii) provide to the Director of the State Lottery Department such tax information as may be necessary to identify those lottery ticket retailers who owe delinquent taxes; (viii) provide to the Department of the Treasury for its confidential use such tax information as may be necessary to facilitate the location of owners and holders of unclaimed property, as defined in § 55-210.2; (ix) provide to the State Corporation Commission, upon entering into a written agreement, such tax information as may be necessary to facilitate the collection of taxes and fees administered by the Commission; (x) provide to the Executive Director of the Potomac and Rappahannock Transportation Commission for its confidential use such tax information as may be necessary to facilitate the collection of the motor vehicle fuel sales tax; (xi) provide to the Director of the Department of Charitable Gaming such tax information as may be necessary to identify those applicants for registration as a supplier of charitable gaming supplies who have not filed required returns or who owe delinquent taxes; (xii) provide to the Department of Housing and Community Development for its confidential use such tax information as may be necessary to facilitate the administration of the Enterprise Zone Act (§ 59.1-270 et seq.); (xiii) provide current name and address information to private collectors entering into a written agreement with the Tax Commissioner, for their confidential use when acting on behalf of the Commonwealth or any of its political subdivisions; however, the Tax Commissioner is not authorized to provide such information to a private collector who has used or disseminated in an unauthorized or prohibited manner any such information previously provided to such collector; (xiv) provide current name and address information as to the identity of the wholesale or retail dealer that affixed a tax stamp to a package of cigarettes to any person who manufactures or sells at retail or wholesale cigarettes and who may bring an action for injunction or other equitable relief for violation of Chapter 10.1, Enforcement of Illegal Sale or Distribution of Cigarettes Act; (xv) provide to the Commissioner of Labor and Industry, upon entering into a written agreement, such tax information as may be necessary to facilitate the collection of unpaid wages under § 40.1-29; and (xvi) provide to the Director of the Department of Human Resource Management, upon entering into a written agreement, such tax information as may be necessary to identify persons receiving workers' compensation indemnity benefits who have failed to report earnings as required by § 65.2-712. The Tax Commissioner is further authorized to enter into written agreements with duly constituted tax officials of other states and of the United States for the inspection of tax returns, the making of audits, and the exchange of information relating to any tax administered by the Department of Taxation. Any person to whom tax information is divulged pursuant to this section shall be subject to the prohibitions and penalties prescribed herein as though he were a tax official.
D. Notwithstanding the provisions of subsection A or B or any other provision of this title, the commissioner of revenue or other assessing official is authorized to (i) provide, upon written request stating the reason for such request, the chief executive officer of any county or city with information furnished to the commissioner of revenue by the Tax Commissioner relating to the name and address of any dealer located within the county or city who paid sales and use tax, for the purpose of verifying the local sales and use tax revenues payable to the county or city; (ii) provide to the Department of Professional and Occupational Regulation for its confidential use the name, address, and amount of gross receipts of any person, firm or entity subject to a criminal investigation of an unlawful practice of a profession or occupation administered by the Department of Professional and Occupational Regulation, only after the Department of Professional and Occupational Regulation exhausts all other means of obtaining such information; and (iii) provide to any representative of a condominium unit owners' association, property owners' association or real estate cooperative association, or to the owner of property governed by any such association, the names and addresses of parties having a security interest in real property governed by any such association; however, such information shall be released only upon written request stating the reason for such request, which reason shall be limited to proposing or opposing changes to the governing documents of the association, and any information received by any person under this subsection shall be used only for the reason stated in the written request. The treasurer or other local assessing official may require any person requesting information pursuant to clause (iii) of this subsection to pay the reasonable cost of providing such information. Any person to whom tax information is divulged pursuant to this subsection shall be subject to the prohibitions and penalties prescribed herein as though he were a tax official.
Notwithstanding the provisions of subsection A or B or any other provisions of this title, the treasurer or other collector of taxes for a county, city or town is authorized to provide information relating to any motor vehicle, trailer or semitrailer obtained by such treasurer or collector in the course of performing his duties to the commissioner of the revenue or other assessing official for such jurisdiction for use by such commissioner or other official in performing assessments.
This section shall not be construed to prohibit a local tax official from imprinting or displaying on a motor vehicle local license decal the year, make, and model and any other legal identification information about the particular motor vehicle for which that local license decal is assigned.
E. Notwithstanding any other provisions of law, state agencies and any other administrative or regulatory unit of state government shall divulge to the Tax Commissioner or his authorized agent, upon written request, the name, address, and social security number of a taxpayer, necessary for the performance of the Commissioner's official duties regarding the administration and enforcement of laws within the jurisdiction of the Department of Taxation. The receipt of information by the Tax Commissioner or his agent which may be deemed taxpayer information shall not relieve the Commissioner of the obligations under this section.
F. Additionally, it shall be unlawful for any person to disseminate, publish, or cause to be published any confidential tax document which he knows or has reason to know is a confidential tax document. A confidential tax document is any correspondence, document, or tax return that is prohibited from being divulged by subsection A, B, C, or D of this section or by § 59.1-282.4. This prohibition shall not apply if such confidential tax document has been divulged or disseminated pursuant to a provision of law authorizing disclosure. Any person violating the provisions of this subsection shall be guilty of a Class 2 misdemeanor.
§ 58.1-303. Residency for portion of tax year.
A. Any person who, during the taxable year, becomes a resident
of Virginia, whether domiciliary or actual, for purposes of income taxation, by
moving to the Commonwealth from without during such taxable year, shall be
taxable as a resident for only that portion of the taxable year during which he
was a resident of the Commonwealth and his personal exemptions shall be reduced
to an amount which bears the same ratio to the full exemptions as the number of
days during which he was a resident of the Commonwealth bears to 365 days. No
person to whom the preceding sentence applies shall be entitled to any credit
on his income tax payable to Virginia for any income tax paid to the state or
other jurisdiction of his former domicile or actual residence for that part of
the taxable year during which he was a domiciliary or actual resident of such
other state or jurisdiction, notwithstanding the provisions of § 58.1-332.
B. Any person who, on or before the last day of the taxable
year, changes his place of abode to a place without the Commonwealth with the
bona fide intention of continuing actually to abide permanently without
Virginia shall be taxable as a resident for only that portion of the taxable
year during which he was a resident of Virginia and his personal exemptions
shall be reduced to an amount which bears the same ratio to the full exemptions
as the number of days during which he was a resident of this the
Commonwealth bears to 365 days. The fact that a person who has changed his
place of abode, within six months from so doing abides again in the
Commonwealth, shall be prima facie evidence that he did not intend permanently
to have his place of abode without Virginia. The fact that a person has removed
his abode to a place without the Commonwealth is not conclusive evidence of a
change of domicile.
C. Any person who is taxable as a resident of the Commonwealth
for only a portion of a taxable year because he moved to this the
Commonwealth from without Virginia during the taxable year as set out in
subsection A, or because he changed his place of abode during the taxable year
to a place without Virginia as set out in subsection B, and who, as a
nonresident of Virginia for any other part of the taxable year derived income
from any property owned or from any business, trade, profession or occupation
carried on in Virginia shall be taxable as a nonresident with respect to such
income as provided in § 58.1-325.
§ 58.1-320. Imposition of tax.
A. For taxable years beginning January 1, 1990, through December 31, 2005, a tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows:
Two percent on income not exceeding $3,000;
Three percent on income in excess of $3,000, but not in excess of $5,000;
Five percent on income in excess of $5,000, but not
in excess of $12,000 for taxable years beginning before January 1, 1987;
Five percent on income in excess of $5,000 but not
in excess of $14,000 for taxable years beginning January 1, 1987, through
December 31, 1987;
Five percent on income in excess of $5,000 but not
in excess of $15,000 for taxable years beginning January 1, 1988, through
December 31, 1988;
Five percent on income in excess of $5,000 but not
in excess of $16,000 for taxable years beginning January 1, 1989, through
December 31, 1989;
Five percent on income in excess of $5,000 but not in excess
of $17,000 for taxable years beginning January 1, 1990;
Five and three-quarters percent on income in excess
of $12,000 for taxable years beginning before January 1, 1987;
Five and three-quarters percent on income in excess
of $14,000 for taxable years beginning January 1, 1987, through December 31,
1987;
Five and three-quarters percent on income in excess
of $15,000 for taxable years beginning January 1, 1988, through December 31,
1988;
Five and three-quarters percent on income in excess
of $16,000 for taxable years beginning January 1, 1989, through December 31,
1989; and
Five and three-quarters percent on income in excess of $17,000 for
taxable years beginning on and after January 1, 1990.
B. For taxable years beginning on or after January 1, 2006, a tax is hereby annually imposed on the Virginia taxable income for each taxable year of every individual as follows:
Three and one-half percent on income in excess of $12,000, but not in excess of $24,000;
Four percent on income in excess of $24,000, but not in excess of $30,000;
Five and one-half percent on income in excess of $30,000, but not in excess of $45,000; and
Six and one-quarter percent on income in excess of
$45,000.
C. For taxable years beginning on and after January 1, 2005, an amount equal to one and one-half percent of the taxable individual income reported annually by the Department of Taxation shall be distributed to every county and city whose personal property tax rate on motor vehicles is no greater than $0.01 per $100 of assessed value, based on each county's and city's share of total Virginia taxable income. Such distributions shall be made no later than September 1 of the year in which the taxes are collected for the immediately preceding year.
§ 58.1-321. Exemptions and exclusions.
A. No tax levied pursuant to § 58.1-320 is imposed, nor any return required to be filed by:
1. A single individual where the Virginia adjusted gross income for such taxable year is less than $5,000 for taxable years beginning on and after January 1, 1987, but before January 1, 2004.
A single individual where the Virginia adjusted gross income plus the modification specified in subdivision D 5 of § 58.1-322 for such taxable year is less than $5,000 for taxable years beginning on and after January 1, 2004, but before January 1, 2005.
A single individual where the Virginia adjusted gross income plus the modification specified in subdivision D 5 of § 58.1-322 for such taxable year is less than $7,000 for taxable years beginning on and after January 1, 2005, but before January 1, 2006.
2. An individual and spouse if their combined Virginia adjusted gross income for such taxable year is less than $8,000 for taxable years beginning on and after January 1, 1987, (or one-half of such amount in the case of a married individual filing a separate return) but before January 1, 2004.
An individual and spouse if their combined Virginia adjusted gross income plus the modification specified in subdivision D 5 of § 58.1-322 is less than $8,000 for taxable years beginning on and after January 1, 2004, (or one-half of such amount in the case of a married individual filing a separate return) but before January 1, 2005; and less than $14,000 for taxable years beginning on and after January 1, 2005 (or one-half of such amount in the case of a married individual filing a separate return) but before January 1, 2006.
For the purposes of this section "Virginia adjusted gross income" means federal adjusted gross income for the taxable years with the modifications specified in § 58.1-322 B, § 58.1-322 C and the additional deductions allowed under § 58.1-322 D 2 b and D 5 for taxable years beginning before January 1, 2004. For taxable years beginning on and after January 1, 2004, but before January 1, 2006, Virginia adjusted gross income means federal adjusted gross income with the modifications specified in subsections B and C of § 58.1-322.
B. No tax levied pursuant to § 58.1-320 is imposed, nor any return required to be filed by:
1. A single individual where the Virginia taxable income for such taxable year is $12,000 or less beginning on or after January 1, 2006;
2. An individual and spouse if their combined Virginia taxable income for such taxable year is $24,000 or less for taxable years beginning on or after January 1, 2006, (or one-half of such amount in the case of a married individual filing a separate return).
B. Persons in the armed forces of the United States stationed on military or naval reservations within Virginia who are not domiciled in Virginia shall not be held liable to income taxation for compensation received from military or naval service.
§ 58.1-322.3. Virginia taxable income of residents.
A. The Virginia taxable income of a resident individual means his federal adjusted gross income for the taxable year, which excludes combat pay for certain members of the Armed Forces of the United States as provided in § 112 of the Internal Revenue Code, as amended, and with the modifications specified in this section.
B. To the extent excluded from federal adjusted gross income, there shall be added interest, less related expenses to the extent not deducted in determining federal income, on obligations of any state other than Virginia, or of a political subdivision of any such other state unless created by compact or agreement to which Virginia is a party.
C. To the extent included in federal adjusted gross income, there shall be subtracted:
1. Income derived from obligations, or on the sale or exchange of obligations, of the United States and on obligations or securities of any authority, commission or instrumentality of the United States to the extent exempt from state income taxes under the laws of the United States including, but not limited to, stocks, bonds, treasury bills, and treasury notes, but not including interest on refunds of federal taxes, interest on equipment purchase contracts, or interest on other normal business transactions.
2. Income derived from obligations, or on the sale or exchange of obligations of the Commonwealth or of any political subdivision or instrumentality of the Commonwealth.
3. Benefits received under Title II of the Social Security Act and other benefits subject to federal income taxation solely pursuant to § 86 of the Internal Revenue Code.
4. The amount of any refund or credit for overpayment of income taxes imposed by the Commonwealth or any other taxing jurisdiction.
§ 58.1-324. Husband and wife.
A. If the federal taxable income of husband or wife is determined on a separate federal return, their Virginia taxable incomes shall be separately determined.
B. If the federal taxable income of husband and wife is determined on a joint federal return, or if neither files a federal return:
1. Their tax shall be determined on their joint Virginia taxable income; or
2. Separate taxes may be determined on their separate Virginia taxable incomes if they so elect.
C. WhereFor taxable years ending on
or before December 31, 2005, when
husband and wife have not separately reported and claimed items of income,
exemptions and deductions for federal income tax purposes, and have not elected
to file a joint Virginia income tax return, such items allowable for Virginia
income tax purposes shall be allocated and adjusted as follows:
1. Income shall be allocated to the spouse who earned the income or with respect to whose property the income is attributable.
2. Allowable deductions with respect to trade, business, production of income, or employment shall be allocated to the spouse to whom attributable.
3. Nonbusiness deductions, where properly taken for federal
income tax purposes, shall be allowable for Virginia income tax purposes, but
shall be allocable between husband and wife as they may mutually agree. For
this purpose, "nonbusiness deductions" consist of allowable
deductions not described in subdivision 2 of this subsection.
4. Where the standard deduction or low income allowance is properly taken pursuant to subdivision D 1 a of § 58.1-322 such deduction or allowance shall be allocable between husband and wife as they may mutually agree.
5. Personal exemptions properly allowable for federal income tax purposes shall be allocated for Virginia income tax purposes as husband and wife may mutually agree; however, exemptions for taxpayer and spouse together with exemptions for old age and blindness must be allocated respectively to the spouse to whom they relate.
D. For taxable years beginning on or after January 1, 2006, when husband and wife have not separately reported and claimed items of income, exemptions, and deductions for federal income tax purposes, and have not elected to file a joint Virginia income tax return, such items allowable for Virginia income tax purposes shall be allocated and adjusted as follows:
1. Income shall be allocated to the spouse who earned the income or with respect to whose property the income is attributable.
2. Allowable deductions in accordance with the provisions of subsection B of § 58.1-321 with respect to social security income and income earned on obligations of the federal government included in federal adjusted gross income shall be allocated to the spouse to whom attributable.
3. Allowable deductions with respect to trade, business, production of income, or employment shall be allocated to the spouse to whom attributable.
4. Nonbusiness deductions, where properly taken for federal income tax purposes, shall be allowable for Virginia income tax purposes, but shall be allocable between husband and wife as they may mutually agree. For this purpose, "nonbusiness deductions" consist of allowable deductions not described in subdivision 3.
DE. Where
allocations are permitted to be made under subsection subsections
C or
D pursuant to agreement between husband and wife, and husband and
wife have failed to agree as to those allocations, such allocations shall be
made between husband and wife in a manner corresponding to the treatment for
federal income tax purposes of the items involved, under regulations prescribed
by the Department of Taxation.
§ 58.1-435. Low-income housing credit.
A. Any person shall be entitled to a credit against the tax
imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360
et seq.), and 10 (§ 58.1-400 et seq.) of
Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); or Article 1 (§ 58.1-2500 et seq.)
of Chapter 25 of Title 58.1 in the amount certified to the Department or the
State Corporation Commission, as applicable, pursuant to § 36-55.63 for any
five taxable years, as such years are determined by the Board of Housing and
Community Development, in which a federal low-income housing credit is allowed
for low-income housing units placed in service on or after January 1, 1998.
Credits granted to a partnership, limited liability company or electing small
business corporation (S corporation) shall be allocated among all partners or
shareholders, respectively, either in proportion to their ownership interest in
such entity or as the partners or shareholders mutually agree as provided in an
executed document, the form of which shall be prescribed by the Board of
Housing and Community Development.
B. Any person claiming a credit pursuant to subsection A shall be subject to recapture of the credit pursuant to § 36-55.63. Any credit recapture shall be assessed and collected in the same manner as a tax attributable to a change in federal taxable income within the meaning of § 58.1-311.
C. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. Any credit not usable for the taxable year may be carried over for credit until the earlier of (i) the full amount of the credit is used or (ii) the expiration of the fifth taxable year after the taxable year in which the Department of Housing and Community Development has certified the amount of such tax credit pursuant to § 36-55.63. No credit shall be carried back to a preceding taxable year. If a taxpayer who is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of the Code of Virginia, or has a credit carryover from a preceding taxable year, such taxpayer shall be considered to have first utilized any credit allowed that does not have a carryover provision, and then any credit that is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.
§ 58.1-438.1. Tax credit for vehicle emissions testing equipment, clean-fuel vehicles and certain refueling property.
Any corporation, individual
or public service corporation shall be allowed a credit against the income or
gross receipts taxes imposed by Subtitle I (§ 58.1-100 et seq.) and Chapter 26
(§ 58.1-2600 et seq.) of Title 58.1 of (i) an amount equal to ten10
percent of the deduction allowed to such corporation, individual
or public service corporation under Section 179A of the Internal Revenue Code
for purchases of clean-fuel vehicles principally garaged in Virginia or certain
refueling property placed in service in Virginia or ten10
percent of the costs used to compute the credit under Section 30 of the
Internal Revenue Code and (ii) an amount equal to twenty20
percent of the purchase or lease price paid during the taxable year for
equipment certified by the Department of Environmental Quality for vehicle
emissions testing, located within, or within any county, city or town adjacent
to, any county, city or town wherein implementation of an enhanced vehicle
emissions inspection program, as defined in § 46.2-1176, is required. Credits
granted to a partnership or S corporation shall be passed through to the
partners or shareholders, respectively. If the credit exceeds the tax liability
in a year, the credit may be carried forward up to five succeeding years.
§ 58.1-439. Major business facility job tax credit.
A. For taxable years beginning on and after January 1, 1995,
but before January 1, 2010, a taxpayer shall be allowed a credit against the
taxes imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360
et seq.), and 10 (§ 58.1-400 et seq.) of
Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); Article 1 (§ 58.1-2500 et seq.) of
Chapter 25; or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 of this title as
set forth in this section.
B. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
C. A "major business facility" is a company that satisfies the following criteria:
1. Subject to the provisions of subsections K or L, the establishment or expansion of the company shall result in the creation of at least 100 jobs for qualified full-time employees; the first such 100 jobs shall be referred to as the "threshold amount"; and
2. The company is engaged in any business in the Commonwealth, except a retail trade business if such trade is the principal activity of an individual facility in the Commonwealth. Examples of types of major business facilities that are eligible for the credit provided under this section include, but are not limited to, a headquarters, or portion of such a facility, where company employees are physically employed, and where the majority of the company's financial, personnel, legal or planning functions are handled either on a regional or national basis. A company primarily engaged in the Commonwealth in the business of manufacturing or mining; agriculture, forestry or fishing; transportation or communications; or a public utility subject to the corporation income tax shall be deemed to have established or expanded a major business facility in the Commonwealth if it meets the requirements of subdivision 1 during a single taxable year and such facilities are not retail establishments. A major business facility shall also include facilities that perform central management or administrative activities, whether operated as a separate trade or business, or as a separate support operation of another business. Central management or administrative activities include, but are not limited to, general management; accounting; computing; tabulating; purchasing; transportation or shipping; engineering and systems planning; advertising; technical sales and support operations; central administrative offices and warehouses; research, development and testing laboratories; computer-programming, data-processing and other computer-related services facilities; and legal, financial, insurance, and real estate services. The terms used in this subdivision to refer to various types of businesses shall have the same meanings as those terms are commonly defined in the Standard Industrial Classification Manual.
D. For purposes of this section, the "credit year" is the first taxable year following the taxable year in which the major business facility commenced or expanded operations.
E. The Department of Taxation shall make all determinations as to the classification of a major business facility in accordance with the provisions of this section.
F. A "qualified full-time employee" means an
employee filling a new, permanent full-time position in a major business
facility in this the
Commonwealth. A "new, permanent full-time position" is a job of an
indefinite duration, created by the company as a result of the establishment or
expansion of a major business facility in this the
Commonwealth, requiring a minimum of 35 hours of an employee's time a week for
the entire normal year of the company's operations, which "normal
year" shall consist of at least 48 weeks, or a position of indefinite
duration which requires a minimum of 35 hours of an employee's time a week for
the portion of the taxable year in which the employee was initially hired for,
or transferred to, the major business facility in this the
Commonwealth. Seasonal or temporary positions, or a job created when a job
function is shifted from an existing location in this the
Commonwealth to the new major business facility and positions in building and
grounds maintenance, security, and other such positions which are ancillary to
the principal activities performed by the employees at a major business
facility shall not qualify as new, permanent full-time positions.
G. For any major business facility, the amount of credit
earned pursuant to this section shall be equal to $1,000 per qualified
full-time employee, over the threshold amount, employed during the credit year.
The credit shall be allowed ratably, with one-third of the credit amount
allowed annually for three years beginning with the credit year. The portion of
the $1,000 credit earned with respect to any qualified full-time employee who
is employed in this the
Commonwealth for less than 12 full months during the credit year will be
determined by multiplying the credit amount by a fraction, the numerator of
which is the number of full months that the qualified full-time employee worked
for the major business facility in this the
Commonwealth during the credit year, and the denominator of which is 12. A
separate credit year and a three-year allowance period shall exist for each
distinct major business facility of a single taxpayer.
H. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. Any credit not usable for the taxable year the credit was allowed may be, to the extent usable, carried over for the next 10 succeeding taxable years. No credit shall be carried back to a preceding taxable year. In the event that a taxpayer who is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of the Code of Virginia, or has a credit carryover from a preceding taxable year, such taxpayer shall be considered to have first utilized any credit allowed which does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.
I. No credit shall be earned pursuant to this section for any employee (i) for whom a credit under this section was previously earned by a related party as defined by Internal Revenue Code § 267 (b) or a trade or business under common control as defined by Internal Revenue Code § 52 (b); (ii) who was previously employed in the same job function in Virginia by a related party as defined by Internal Revenue Code § 267 (b) or a trade or business under common control as defined by Internal Revenue Code § 52 (b); (iii) whose job function was previously performed at a different location in Virginia by an employee of the taxpayer, a related party as defined by Internal Revenue Code § 267 (b), or a trade or business under common control as defined by Internal Revenue Code § 52 (b); or (iv) whose job function previously qualified for a credit under this section at a different major business facility on behalf of the taxpayer, a related party as defined by Internal Revenue Code § 267 (b), or a trade or business under common control as defined by Internal Revenue Code § 52 (b).
J. Subject to the provisions of subsections K or L, recapture of this credit, under the following circumstances, shall be accomplished by increasing the tax in any of the five years succeeding the taxable year in which a credit has been earned pursuant to this section if the number of qualified full-time employees decreases below the average number of qualified full-time employees employed during the credit year. Such tax increase amount shall be determined by (i) recomputing the credit which would have been earned for the original credit year using the decreased number of qualified full-time employees and (ii) subtracting such recomputed credit from the amount of credit previously earned. In the event that the average number of qualifying full-time employees employed at a major business facility falls below the threshold amount in any of the five taxable years succeeding the credit year, all credits earned with respect to such major business facility shall be recaptured. No credit amount will be recaptured more than once pursuant to this subsection. Any recapture pursuant to this section shall reduce credits earned but not yet allowed, and credits allowed but carried forward, before the taxpayer's tax liability may be increased.
K. In the event that a major business facility is located in an economically distressed area or in an enterprise zone as defined in § 59.1-271 during a credit year, the threshold amount required to qualify for a credit pursuant to this section and to avoid full recapture shall be reduced from 100 to 50 for purposes of subdivision C 1 and subsection J. An area shall qualify as economically distressed if it is a city or county with an unemployment rate for the preceding year of at least 0.5 percent higher than the average statewide unemployment rate for such year. The Virginia Economic Development Partnership shall identify and publish a list of all economically distressed areas at least annually.
L. For taxable years beginning on or after January 1, 2004, but before January 1, 2006, in the event that a major business facility is located in a severely economically distressed area, the threshold amount required to qualify for a credit pursuant to this section and to avoid full recapture shall be reduced from 100 to 25 for purposes of subdivision C 1 and subsection J. However, the total amount of credit allowable under this subsection shall not exceed $100,000 in aggregate. An area shall qualify as severely economically distressed if it is a city or county with an unemployment rate for the preceding year of at least twice the average statewide unemployment rate for such year. The Virginia Economic Development Partnership shall identify and publish a list of all severely economically distressed areas at least annually.
M. The Tax Commissioner shall promulgate regulations, in accordance with the Administrative Process Act (§ 2.2-4000 et seq.), relating to (i) the computation, carryover, and recapture of the credit provided under this section; (ii) defining criteria for (a) a major business facility, (b) qualifying full-time employees at such facility, and (c) economically distressed areas; and (iii) the computation, carryover, recapture, and redemption of the credit by affiliated companies pursuant to subsection S.
N. The provisions of this section shall apply only in instances where an announcement of intent to establish or expand a major business facility is made on or after January 1, 1994. An announcement of intent to establish or expand a major business facility includes, but is not limited to, a press conference or extensive press coverage, providing information with respect to the impact of the project on the economy of the area where the major business facility is to be established or expanded and the Commonwealth as a whole.
O. The credit allowed pursuant to this section shall be granted to the person who pays taxes for the qualified full-time employees pursuant to Chapter 5 (§ 60.2-500 et seq.) of Title 60.2.
P. No person shall claim a credit allowed pursuant to this section and the credit allowed pursuant to § 58.1-439.2.
Q. No person operating a business in the Commonwealth pursuant to Chapter 29 (§ 59.1-364 et seq.) of Title 59.1 shall claim a credit pursuant to this section.
R. Notwithstanding subsection O, a taxpayer may, for the purpose of determining the number of qualified full-time employees at a major business facility, include the employees of a contractor or a subcontractor if such employees are permanently assigned to the taxpayer's major business facility. If the taxpayer includes the employees of a contractor or subcontractor in its total of qualified full-time employees, it shall enter into a contractual agreement with the contractor or subcontractor prohibiting the contractor or subcontractor from also claiming these employees in order to receive a credit given under this section. The taxpayer shall provide evidence satisfactory to the Department of Taxation that it has entered into such a contract.
S. For purposes of satisfying the criteria of subdivision C 1, two or more affiliated companies may elect to aggregate the number of jobs created for qualified full-time employees as the result of the establishment or expansion by the individual companies in order to qualify for the credit allowed pursuant to this section. For purposes of this subsection, "affiliated companies" means two or more companies related to each other such that (i) one company owns at least 80 percent of the voting power of the other or others or (ii) at least 80 percent of the voting power of two or more companies is owned by the same interests.
T. The General Assembly of Virginia finds that modern business
infrastructure allows businesses to locate their administrative or
manufacturing facilities with minimal regard to the location of markets or the
transportation of raw materials and finished goods, and that the economic
vitality of this the
Commonwealth would be enhanced if such facilities were established in Virginia.
Accordingly, the provisions of this section targeting the credit to major
business facilities and limiting the credit to those companies which establish
a major business facility in Virginia are integral to the purpose of the credit
earned pursuant to this section and shall not be deemed severable.
§ 58.1-439.4. Day-care facility investment tax credit.
A. For taxable years beginning on and after January 1, 1997,
any taxpayer shall be allowed a credit against the taxes imposed by §
58.1-320 or § 58.1-400 in an amount equal to twenty-five25
percent of all expenditures paid or incurred by such taxpayer in such taxable
year for planning, site preparation, construction, renovation, or acquisition
of facilities for the purpose of establishing a child day-care facility to be
used primarily by the children of such taxpayer's employees, and equipment
installed for permanent use within or immediately adjacent to such facility,
including kitchen appliances, to the extent that such equipment or appliances
are necessary in the use of such facility for purposes of child day-care;
however, the amount of credit allowed to any taxpayer under this section shall
not exceed $25,000. If two or more taxpayers share in the cost of establishing
the child day-care facility for the children of their employees, each such
taxpayer shall be allowed such credit in relation to the respective share paid
or incurred by such taxpayer, of the total expenditures for the facility in
such taxable year.
B. The credits provided under this section shall be allowed only if (i) the child day-care facility shall be operated under the authority of a license issued by the Commissioner of Social Services pursuant to § 63.2-1701, (ii) an application for a building permit for the facility is made after July 1, 1996, and (iii) the Tax Commissioner approves a taxpayer's application for a credit. Proper applications submitted to the Department for the credit shall be approved in the order received. For each application approved for credit it shall be assumed that the amount of the credit will be $25,000, and the amount of the credit will be taken in the fiscal year in which the application is approved and the following two fiscal years. Approval of applications shall be limited to those that are assumed to result in no more than $100,000 of credits in any fiscal year based on the assumptions set forth in this subsection.
C. Any tax credit not usable for the taxable year may be carried over to the extent usable for the next three taxable years; however, the balance of a credit shall not be claimed for any succeeding taxable year in which the child day-care facility is operated for purposes of child day-care for less than six months.
D. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
§ 58.1-439.6. Worker retraining tax credit.
A. As used in this section, unless the context clearly requires otherwise:
"Eligible worker retraining" means retraining of a qualified employee that promotes economic development in the form of (i) noncredit courses at any of the Commonwealth's community colleges or a private school or (ii) worker retraining programs undertaken through an apprenticeship agreement approved by the Virginia Apprenticeship Council.
"Qualified employee" means an employee of an employer eligible for a credit under this section in a full-time position requiring a minimum of 1,680 hours in the entire normal year of the employer's operations if the standard fringe benefits are paid by the employer for the employee. Employees in seasonal or temporary positions shall not qualify as qualified employees. A qualified employee (i) shall not be a relative of any owner or the employer claiming the credit and (ii) shall not own, directly or indirectly, more than five percent in value of the outstanding stock of a corporation claiming the credit. As used herein, "relative" means a spouse, child, grandchild, parent or sibling of an owner or employer, and "owner" means, in the case of a corporation, any person who owns five percent or more of the corporation's stock.
B. For taxable years beginning on and after January 1, 1999,
an employer shall be allowed a credit against the taxes imposed by Articles 2 (§
58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and
10 (§ 58.1-400 et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); Article
1 (§ 58.1-2500 et seq.) of Chapter 25; or Article 2 (§ 58.1-2620 et seq.) of
Chapter 26 of this title in an amount equal to thirty 30
percent of all expenditures paid or incurred by the employer
during the taxable year for eligible worker retraining. However, if the
eligible worker retraining consists of courses conducted at a private school,
the credit shall be in an amount equal to the cost per qualified employee, but
the amount of the credit shall not exceed $100 per qualified employee annually.
The total amount of tax credits granted to employers under this section for
each fiscal year shall not exceed $2,500,000.
C. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
D. An employer shall be entitled to the credit granted under this section only for those courses at a community college or a private school which courses have been certified as eligible worker retraining to the Department of Taxation by the Department of Business Assistance. The Tax Commissioner shall promulgate regulations, in accordance with the Administrative Process Act (§ 2.2-4000 et seq.), (i) establishing procedures for claiming the credit provided by this section, (ii) defining eligible worker retraining, which shall include only those courses and programs that are substantially related to the duties of a qualified employee or that enhance the qualified employee's job-related skills, and that promote economic development, and (iii) providing for the allocation of credits among employers requesting credits in the event that the amount of credits for which requests are made exceeds the available amount of credits in any year. The Department of Business Assistance shall review requests for certification submitted by employers and shall advise the Tax Commissioner whether a course or program qualifies as eligible worker retraining.
E. Any credit not usable for the taxable year may be carried over for the next three taxable years. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. No credit shall be carried back to a preceding taxable year. If an employer that is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of this Code, or has a credit carryover from a preceding taxable year, such employer shall be considered to have first utilized any credit allowed which does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.
F. No employer shall be eligible to claim a credit under this section for worker retraining undertaken by any program operated, administered, or paid for by the Commonwealth.
G. The Director of the Department of Business Assistance shall report annually to the chairmen of the House Finance and Senate Finance Committees on the status and implementation of the credit established by this section, including certifications for eligible worker retraining.
§ 58.1-439.9. Tax credit for certain employers hiring recipients of Temporary Assistance for Needy Families.
A. As used in this section:
"Qualified business employer" means an employer whose business employed not more than 100 employees at the time that the employer first hired a qualified employee.
"Qualified employee" means an employee who is a Virginia resident and is a recipient of Temporary Assistance for Needy Families (TANF) in accordance with the provisions of Chapter 6 (§ 63.2-600 et seq.) of Title 63.2.
B. For taxable years beginning on and after January 1, 1999, a
qualified business employer shall be allowed a credit against the taxes imposed
by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360
et seq.), and 10 (§ 58.1-400 et seq.) of
Chapter 3 of this title in an amount equal to five percent of the annual salary
actually paid during the taxable year to a qualified employee. However, the
annual amount of the credit shall not exceed $750 per qualified employee.
Qualified business employers entitled to the credit pursuant to this section
shall provide written evidence, satisfactory to the Tax Commissioner, of
employing such qualified employee for the taxable year in which the credit is
claimed.
C. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
D. Any credit not usable for the taxable year may be carried over for the next three taxable years. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. No credit shall be carried back to a preceding taxable year. If a qualified business employer that is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of this Code, or has a credit carryover from a preceding taxable year, such employer shall be considered to have first utilized any credit allowed which does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.
E. The amount of tax credits available under this section in any fiscal year shall not exceed the amount appropriated for such year as provided in the general appropriation act.
F. The State Board of Social Services shall promulgate regulations in accordance with the Administrative Process Act (§ 2.2-4000 et seq.) establishing procedures for claiming the tax credit provided by this section.
§ 58.1-439.10. Tax credit for purchase of waste motor oil burning equipment.
A. For taxable years beginning on and after January 1, 1999, a
taxpayer who operates a business facility within the Commonwealth which accepts
waste motor oil from the public shall be allowed a credit against the taxes
imposed pursuant to Articles 2 (§ 58.1-320 et seq.) and Article
10 (§ 58.1-400 et seq.) of this chapter in an amount equal to fifty50
percent of the purchase price paid during the taxable year for equipment used
exclusively for burning waste motor oil at the business facility. The total
credit allowed to any taxpayer under this section in any taxable year shall not
exceed $5,000.
B. The Department of Environmental Quality shall certify that such equipment is used to burn waste motor oil at a business facility within the Commonwealth which accepts waste motor oil from the public before the taxpayer shall be entitled to the tax credit under this section. The taxpayer shall also submit with his income tax return such receipts, invoices, and other documentation as may be necessary to confirm the taxpayer's statement of the purchase price paid for the waste motor oil burning equipment. Any tax credit under this section shall be used only for the taxable year in which the purchase price of the waste motor oil burning equipment was paid.
C. For purposes of this section, the amount of any credit attributable to the purchase of equipment used exclusively for burning waste motor oil by a partnership or electing small business corporation (S corporation) shall be allocated to the individual partners or shareholders in proportion to their ownership or interest in the partnership or S corporation.
§ 58.1-439.11. Employees with disabilities tax credit.
A. As used in this section, unless the context clearly requires otherwise:
"Qualified employee" means an otherwise qualified person with a disability who has completed or is completing rehabilitative services from the Department of Rehabilitative Services, the Department for the Blind and Vision Impaired or the U.S. Department of Veterans Affairs. An otherwise qualified person with a disability (i) shall not be a relative of any owner or the employer claiming the credit and (ii) shall not own, directly or indirectly, more than five percent in value of the outstanding stock of a corporation claiming the credit. As used herein, "relative" means a spouse, child, grandchild, parent or sibling of an owner or employer, and "owner" means, in the case of a corporation, any person who owns five percent or more of the corporation's stock.
"Wages" means wages, within the meaning of § 51 (c) (1), (2) and (3) of the Internal Revenue Code without regard to § 51 (c) (4) of the Internal Revenue Code, that are paid by an employer to an employee for services performed in the employer's trade or business.
B. Except as provided in subsection D of this section, an employer may claim a tax credit in the amounts determined under subsection C of this section for the wages of a qualified employee that are paid in the taxable year for which the employer claims the credit. The same tax credit shall not be applied more than once against different taxes by the same taxpayer.
C. For taxable years beginning on and after January 1, 1999,
but before December 31, 2002, an employer shall be allowed a credit against the
taxes imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360
et seq.), and 10 (§ 58.1-400 et seq.) of
Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); Article 1 (§ 58.1-2500 et seq.) of
Chapter 25; or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 of this title in
an amount equal to twenty 20 percent
of the first $6,000 of wages paid annually to each qualified employee during
the first two taxable years of such employee's employment.
D. An employer shall not claim the credit allowed under this section for a qualified employee who is on strike or for whom the employer simultaneously receives federal or state employment training benefits. Furthermore, the credit allowed under this section shall be based on actual wages paid during the applicable taxable year.
E. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
F. An employer shall be entitled to the credit granted under this section only for those qualified employees who have been certified as otherwise qualified persons with disabilities to the Department of Taxation by the Department of Rehabilitative Services, the Department for the Blind and Vision Impaired or the U.S. Department of Veterans Affairs. The Tax Commissioner shall promulgate regulations, in accordance with the Administrative Process Act (§ 2.2-4000 et seq.), establishing procedures for claiming the credit provided by this section. The Department of Rehabilitative Services, the Department for the Visually Handicapped or the U.S. Department of Veterans Affairs shall review requests for certification submitted by employers and shall advise the Tax Commissioner whether an employee qualifies.
G. Any credit not usable for the taxable year may be carried over for the next three taxable years. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. No credit shall be carried back to a preceding taxable year. If an employer that is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of this Code, or has a credit carryover from a preceding taxable year, such employer shall be considered to have first utilized any credit allowed which does not have a carryover provision, and then any credit which is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.
H. No employer shall be eligible to claim a credit under this section if the employer is claiming a tax credit for the same employee under § 58.1-439.
I. The Tax Commissioner shall report annually to the Chairmen of the House Finance and Senate Finance Committees on the status and implementation of the credit established by this section, including certifications for otherwise qualified persons with disabilities.
§ 58.1-439.13. Tax credit for investing in technology industries in tobacco-dependent localities.
A. For purposes of this section:
"Biotechnology company" means a taxpayer that (i) has paid or incurred qualified research expenses for research, development, production, or provision of biotechnology for the purpose of developing or providing products or processes for specific commercial or public purposes, including, but not limited to, medical, pharmaceutical, nutritional, and other health-related purposes; agricultural purposes; or environmental purposes, (ii) conducts pilot scale manufacturing in Virginia, or (iii) provides services or products necessary for such research, development, production, or provision.
"Capital investment" means an investment in real property, personal property, or both, by an information technology or biotechnology company that is capitalized by such company.
"Equity" has the same meaning as
that term is defined in § 58.1-339.4means common stock or
preferred stock, regardless of class or series, of a corporation; a
partnership interest in a limited partnership; or a membership interest in a
limited liability company, which is
not required or subject
to an option on the part of the taxpayer to be redeemed by
the issuer within three years from the date of issuance.
"Qualified investment" means a cash investment in an information technology or biotechnology company in the form of equity or subordinated debt; however, an investment shall not be qualified if the taxpayer who holds such investment, or any of such taxpayer's family members, or any entity affiliated with such taxpayer, receives or has received compensation from such company in exchange for services provided to such business as an employee, officer, director, manager, independent contractor or otherwise in connection with or within one year before or after the date of such investment. For the purposes hereof, reimbursement of reasonable expenses incurred shall not be deemed to be compensation.
A qualified investment shall also include a capital investment.
"Qualified research expenses" means qualified research expenses as defined in § 41 of the Internal Revenue Code of 1986, 26 U.S.C. § 41, as in effect on June 30, 1992, in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, environmental technology, or medical device technology.
"Subordinated debt" has the same meaning as that term is defined in § 58.1-339.4.
"Tobacco-dependent locality" means those Virginia localities that have traditionally economically depended on tobacco and shall be identified by the Tobacco Indemnification and Community Revitalization Commission.
B. For taxable years beginning on and after January 1, 2000,
but before January 1, 2010, a taxpayer shall be allowed a credit against the
taxes imposed for such taxable years by Articles 2 (§ 58.1-320 et seq.),
6 (§ 58.1-360 et seq.), and
10 (§ 58.1-400 et seq.) of this chapter in the amount equal to fifty50
percent of the qualified investment in an information technology or
biotechnology company located in a tobacco-dependent locality. The amount of
credit allowed to a taxpayer under this section shall not exceed $500,000 in
aggregate for qualified investments other than capital investments, and shall
not exceed $500,000 per taxable year for capital investments. Such credit shall
be first allowed for the taxable year in which the qualified investment was
completed or made if the qualified investment was a capital investment. For all
qualified investments, before any credit is allowed under this section, the Virginia
Economic Development Partnership shall review, evaluate and report to the
Tobacco Indemnification and Community Revitalization Commission upon the
taxpayer's proposed capital investments, detailing how such qualified
investment will be spent in a tobacco-dependent locality. The credit provided
under this section shall then first be allowed for the taxable year in which
the Commission finds that such qualified investment was spent in a
tobacco-dependent locality. The amount of credit allowed shall not exceed the
tax imposed for the taxable year. Any credit not usable for the taxable year
because of this limitation may be carried over for the next ten 10
succeeding taxable years. No credit shall be carried back to a
preceding taxable year. If a taxpayer that is subject to the tax limitation
imposed pursuant to this subsection is allowed another credit pursuant to any
other section of the Code of Virginia, or has a credit carryover from a
preceding taxable year, such taxpayer shall be considered to have first
utilized any credit allowed that does not have a carryover provision, and then
any credit that is carried forward from a preceding taxable year, prior to the
utilization of any credit allowed pursuant to this section.
C. The tax credit established in this section may be claimed to the extent moneys from the Tobacco Indemnification and Community Revitalization Fund, created in § 3.1-1111, are deposited into the Technology Initiative in Tobacco-Dependent Localities Fund, established under § 58.1-439.15, for the purpose of funding this credit. If the amount of credits otherwise allowable under this section exceed the amount deposited in the Fund for a fiscal year, such credits shall be allocated to taxpayers on a pro rata basis by the Department of Taxation.
D. In the case of a qualified investment other than a capital investment, unless the taxpayer transfers the equity received in connection with such investment as a result of (i) the liquidation of the information technology or biotechnology company issuing such equity, (ii) the merger, consolidation or other acquisition of such business with or by a party not affiliated with such business, or (iii) the death of the taxpayer, any taxpayer that fails to hold such equity for at least five full calendar years following the calendar year for which a tax credit for such investment is allowed pursuant to this section shall forfeit both used and unused tax credits and shall pay the Department of Taxation a penalty equal to all of the tax credits allowed to such taxpayer pursuant to this section, except for credit allowed for a capital investment, with interest at the rate of one percent per month, compounded monthly, from the date the tax credits were allocated to the taxpayer. Any amount received under this subsection shall be deposited into the Technology Initiative in Tobacco-Dependent Localities Fund.
E. A taxpayer who claims the credit for a qualified investment under this section may not use such qualified investment as the basis for claiming any other credit provided under the Code of Virginia.
F. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders or members, respectively, in proportion to their ownership or interest in such business entities.
§ 58.1-439.14. Tax credit for research and development activity occurring in tobacco-dependent localities.
A. As used in this section:
"Eligible research and development activity" means qualified research expenses as defined in § 41 of the Internal Revenue Code of 1986, 26 U.S.C. § 41, as in effect on June 30, 1992, in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, environmental technology, or medical device technology, or other technology field, when such expenses are paid or incurred by a taxpayer for such activity occurring at the taxpayer's place of business in a tobacco-dependent locality of the Commonwealth.
"Tobacco-dependent locality" means those Virginia localities that have traditionally economically depended on tobacco and shall be identified by the Tobacco Indemnification and Community Revitalization Commission.
B. For taxable years beginning on and after January 1, 2000,
but before January 1, 2010, a taxpayer shall be allowed a credit against the
taxes imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360
et seq.), and 10 (§ 58.1-400 et seq.) of this
chapter as set forth in this section. The amount of credit allowed pursuant to
this section shall be equal to fifty 50
percent of the amount paid or incurred by a taxpayer for an
eligible research and development activity during the taxable year.
C. A taxpayer may claim the credit for the taxable year in
which the eligible research and development activity occurred. No taxpayer
shall be eligible to claim a credit of more than $500,000 per taxable year. The
amount of credit allowed shall not exceed the tax imposed for the taxable year.
Any credit not usable for the taxable year because of such limitation may be,
to the extent usable and subject to subsections D and E, carried over for the
next ten10
succeeding taxable years. No credit shall be carried back to a preceding
taxable year. If a taxpayer that is subject to the tax limitation imposed
pursuant to this subsection is allowed another credit pursuant to any other
section of the Code of Virginia, or has a credit carryover from a preceding
taxable year, such taxpayer shall be considered to have first utilized any
credit allowed that does not have a carryover provision, and then any credit
that is carried forward from a preceding taxable year, prior to the utilization
of any credit allowed pursuant to this section.
D. The tax credit established in this section may be claimed to the extent moneys from the Tobacco Indemnification and Community Revitalization Fund, created in § 3.1-1111, are deposited into the Technology Initiative in Tobacco-Dependent Localities Fund, established under § 58.1-439.15, for the purpose of funding this credit. If the amount of credits otherwise allowable under this section exceed the amount deposited in the Fund for a fiscal year, such credits shall be allocated to taxpayers on a pro rata basis by the Department of Taxation.
E. Tax credit redemption and transfer.
If the taxpayer has no state tax liability for two consecutive
taxable years for which credit is otherwise allowable, the credit amount
applicable to such taxable years may be redeemable by the Tax Commissioner on
behalf of the Commonwealth for seventy-five75 percent
of the face value within ninety90 days
after the taxpayer has filed the applicable income tax return for the second
such taxable year. If the Commonwealth does not redeem the tax credit or upon
the taxpayer's election, such tax credit shall be transferable by sale.
F. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders or members, respectively, in proportion to their ownership or interest in such business entities.
G. A taxpayer who claims the credit for eligible research and development activity under this section may not use such research and development activity as the basis for claiming any other credit provided under the Code of Virginia.
§ 58.1-490. Declarations of estimated tax.
A. Every resident and nonresident individual shall make a
declaration of his estimated tax for every taxable year, if his Virginia tax
liability can reasonably be expected to exceed an amount, to be determined
under regulations promulgated by the Tax Commissioner, which takes into account
the
additions, subtractions and deductions set forth in § 58.1-322, the
credits set forth in §§ 58.1-330, 58.1-331, 58.1-332 and 58.1-333 and the
filing exclusions set forth in § 58.1-321. Every estate with respect to any
taxable year ending two or more years after the date of death of the decedent
and every trust shall make a declaration of its estimated tax for every taxable
year, if its Virginia taxable income can reasonably be expected to exceed the
amount specified by regulation for individuals as set forth above.
B. For purposes of this article, "estimated tax" means the amount which an individual estimates to be his income tax under this chapter for the taxable year, less the amount which he estimates to be the sum of any credits allowable against the tax.
C. For purposes of this section, the declaration shall be the first voucher.
D. In the case of a husband and wife, a single declaration under this section may be made by them jointly, in which case the liability with respect to the estimated tax shall be joint and several. No joint declaration may be made if either the husband or the wife is a nonresident of the Commonwealth unless both are required by this chapter to file a return, if they are separated under a decree of divorce or of separate maintenance, or if they have different taxable years. If a joint declaration is made but a joint return is not made for the taxable year, the estimated tax for such year may be treated as the estimated tax of either the husband or the wife, or may be divided between them.
E. A declaration of estimated tax of an individual other than a farmer, fisherman, or merchant seaman shall be filed on or before May 1 of the taxable year, except that if the requirements of subsection A are first met:
1. The declaration shall be filed on or before June 15, or
2. After June 1 and before September 2 of the taxable year, the declaration shall be filed on or before September 15, or
3. After September 1 of the taxable year, the declaration shall be filed on or before January 15 of the succeeding year.
F. A declaration of estimated tax of an individual having an estimated gross income from (i) farming (including oyster farming); (ii) fishing; or (iii) working as a merchant seaman for the taxable year, which is at least two-thirds of his total estimated gross income for the taxable year, may be filed at any time on or before January 15 of the succeeding year, in lieu of the time otherwise prescribed.
G. A declaration of estimated tax of an individual having a
total estimated tax for the taxable year of forty dollars $40
or less may be filed at any time on or before January 15 of the succeeding year
under regulations of the Tax Commissioner.
H. An individual may amend a declaration under regulations of the Tax Commissioner.
I. If on or before March 1 of the succeeding taxable year an individual files his return for the taxable year for which the declaration is required, and pays therewith the full amount of the tax shown to be due on the return:
1. Such return shall be considered as his declaration if no declaration was required to be filed during the taxable year, but is otherwise required to be filed on or before January 15.
2. Such return shall be considered as the amendment permitted by subsection H to be filed on or before January 15 if the tax shown on the return is greater than the estimated tax shown in a declaration previously made.
J. This section shall apply to a taxable year other than a calendar year by the substitution of the months of such fiscal year for the corresponding months specified in this section.
K. An individual having a taxable year of less than twelve 12 months shall make a declaration in
accordance with regulations of the Tax Commissioner.
L. The declaration of estimated tax for an individual who is unable to make a declaration by reason of any disability shall be made and filed by his guardian, committee, fiduciary or other person charged with the care of his person or property (other than a receiver in possession of only a part of his property), or by his duly authorized agent.
M. The declaration of estimated tax for a trust or estate shall be made by the fiduciary. For purposes of the estimated tax imposed in this article, any reference to an "individual" shall be deemed to include the fiduciary required to file a declaration for a trust or estate. Any overpayment of estimated tax with respect to any trust or estate shall be refunded to the fiduciary. A beneficiary of a trust or estate shall not be entitled to a credit against the beneficiary's individual income tax for any overpayment of estimated tax by a trust or estate.
§ 58.1-512. Land preservation tax credits for corporations.
A. For taxable years beginning on or after January 1, 2000,
there shall be allowed as a credit against the tax liability imposed by §§
58.1-320 and § 58.1-400, an amount equal to fifty50
percent of the fair market value of any land or interest in land located in
Virginia which is conveyed for the purpose of agricultural and forestal use,
open space, natural resource, and/or biodiversity conservation, or land,
agricultural, watershed and/or historic preservation, as an unconditional
donation in perpetuity by the landowner/taxpayer to a public or private
conservation agency eligible to hold such land and interests therein for
conservation or preservation purposes. The fair market value of qualified
donations made under this section shall be substantiated by a "qualified
appraisal" prepared by a "qualified appraiser," as those terms
are defined under applicable federal law and regulations governing charitable
contributions.
B. 1. The amount of the credit that may be claimed by a taxpayer shall not exceed $50,000 for 2000 taxable years, $75,000 for 2001 taxable years, and $100,000 for 2002 taxable years and thereafter. In addition, in any one taxable year the credit used may not exceed the amount of individual, fiduciary or corporate income tax otherwise due. Any portion of the credit which is unused in any one taxable year may be carried over for a maximum of five consecutive taxable years following the taxable year in which the credit originated until fully expended.
2. Qualified donations shall include the conveyance in perpetuity of a fee interest in real property or a less-than-fee interest in real property, such as a conservation restriction, preservation restriction, agricultural preservation restriction, or watershed preservation restriction, provided that such less-than-fee interest qualifies as a charitable deduction under § 170 (h) of the U.S. Internal Revenue Code of 1986, as amended. Dedications of land for open space for the purpose of fulfilling density requirements to obtain subdivision or building permits shall not be considered as qualified donations under this act.
3. Qualified donations shall be eligible for the tax credit herein described if such donations are made to the Commonwealth of Virginia, an instrumentality thereof, or a charitable organization described in § 501 (c) (3) of the U.S. Internal Revenue Code of 1986, as amended, if such charitable organization (i) meets the requirements of § 509 (a) (2) or (ii) meets the requirements of § 509 (a) (3) and is controlled by an organization described in § 509 (a) (2).
4. The preservation, agricultural preservation, historic preservation or similar use and purpose of such property shall be assured in perpetuity.
§ 58.1-602. Definitions.
As used in this chapter, unless the context clearly shows otherwise, the term or phrase:
"Advertising" means the planning,
creating, or placing of advertising in newspapers, magazines, billboards,
broadcasting and other media, including, without limitation, the providing of
concept, writing, graphic design, mechanical art, photography and production
supervision. Any person providing advertising as defined herein shall be deemed
to be the user or consumer of all tangible personal property purchased for use
in such advertising.
"Amplification, transmission and distribution
equipment" means, but is not limited to, production, distribution, and
other equipment used to provide Internet-access services, such as computer and
communications equipment and software used for storing, processing and
retrieving end-user subscribers' requests.
"Business" includes any activity engaged in by any person, or caused to be engaged in by him, with the object of gain, benefit or advantage, either directly or indirectly.
"Cost price" means the actual cost of an item or article of tangible personal property computed in the same manner as the sales price as defined in this section without any deductions therefrom on account of the cost of materials used, labor, or service costs, transportation charges, or any expenses whatsoever.
"Custom program" means a computer program
which is specifically designed and developed only for one customer. The
combining of two or more prewritten programs does not constitute a custom
computer program. A prewritten program that is modified to any degree remains a
prewritten program and does not become custom.
"Distribution" means the transfer or delivery of a service or tangible personal property for use, consumption, or storage by the distributee, and the use, consumption, or storage of tangible personal property by a person who has processed, manufactured, refined, or converted such property, but does not include the transfer or delivery of tangible personal property for resale or any use, consumption, or storage otherwise exempt under this chapter.
"Gross proceeds" means the charges made or voluntary contributions received for the lease or rental of tangible personal property or for furnishing services, computed with the same deductions, where applicable, as for sales price as defined in this section over the term of the lease, rental, service, or use, but not less frequently than monthly.
"Gross sales" means the sum total of all retail
sales of tangible personal property or servicesas defined in this
chapter, without any deduction, except as provided in this
chapter. "Gross sales" shall not include the federal retailers'
excise tax or the federal diesel fuel excise tax imposed in § 4091 of the
Internal Revenue Code if the excise tax is billed to the purchaser separately
from the selling price of the article, or the Virginia retail sales or use tax,
or any sales or use tax imposed by any county or city under § 58.1-605 or §
58.1-606.
"Import" and "imported" are words
applicable to services or tangible personal property
imported into this the
Commonwealth from other states as well as from foreign countries, and
"export" and "exported" are words applicable to services
or tangible personal property exported from this the
Commonwealth to other states as well as to foreign countries.
"In this Commonwealth" or "in the Commonwealth" means within the limits of the Commonwealth of Virginia and includes all territory within these limits owned by or ceded to the United States of America.
"Internet" means collectively, the myriad of computer and telecommunications facilities, which comprise the interconnected world-wide network of computer networks.
"Internet service" means a service that enables users to access proprietary and other content, information electronic mail, and the Internet as part of a package of services sold to end-user subscribers.
"Lease or rental" means the leasing or renting of a service or tangible personal property and the possession or use thereof by the lessee or renter for a consideration, without transfer of the title to such property.
"Manufacturing, processing, refining, or conversion" includes the production line of the plant starting with the handling and storage of raw materials at the plant site and continuing through the last step of production where the product is finished or completed for sale and conveyed to a warehouse at the production site, and also includes equipment and supplies used for production line testing and quality control. The term "manufacturing" shall also include the necessary ancillary activities of newspaper and magazine printing when such activities are performed by the publisher of any newspaper or magazine for sale daily or regularly at average intervals not exceeding three months.
The determination whether any manufacturing, mining, processing, refining or conversion activity is industrial in nature shall be made without regard to plant size, existence or size of finished product inventory, degree of mechanization, amount of capital investment, number of employees or other factors relating principally to the size of the business. Further, "industrial in nature" shall include, but not be limited to, those businesses classified in codes 10 through 14 and 20 through 39 published in the Standard Industrial Classification Manual for 1972 and any supplements issued thereafter.
"Modular building" means, but shall not be limited to, single and multifamily houses, apartment units, commercial buildings, and permanent additions thereof, comprised of one or more sections that are intended to become real property, primarily constructed at a location other than the permanent site, built to comply with the Virginia Industrialized Building Safety Law (§ 36-70 et seq.) as regulated by the Virginia Department of Housing and Community Development, and shipped with most permanent components in place to the site of final assembly. For purposes of this chapter, a modular building shall not include a mobile office as defined in § 58.1-2401 or any manufactured building subject to and certified under the provisions of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. § 5401 et seq.).
"Modular building manufacturer" means a person or corporation who owns or operates a manufacturing facility and is engaged in the fabrication, construction and assembling of building supplies and materials into modular buildings, as defined in this section, at a location other than at the site where the modular building will be assembled on the permanent foundation and may or may not be engaged in the process of affixing the modules to the foundation at the permanent site.
"Modular building retailer" means any person who purchases or acquires a modular building from a modular building manufacturer, or from another person, for subsequent sale to a customer residing within or outside of the Commonwealth, with or without installation of the modular building to the foundation at the permanent site.
"Motor vehicle" means a "motor vehicle" as defined in § 58.1-2401, taxable under the provisions of the Virginia Motor Vehicles Sales and Use Tax Act (§ 58.1-2400 et seq.) and upon the sale of which all applicable motor vehicle sales and use taxes have been paid.
"Occasional sale" means a sale of a service or tangible personal property not provided, held, or used by a seller in the course of an activity for which he is required to hold a certificate of registration, including the sale or exchange of all or substantially all the assets of any business and the reorganization or liquidation of any business, provided such sale or exchange is not one of a series of sales and exchanges sufficient in number, scope and character to constitute an activity requiring the holding of a certificate of registration.
"Open video system" means an open video
system authorized pursuant to 47 U.S.C. § 573 and, for purposes of this chapter
only, shall also include Internet service regardless of whether the provider of
such service is also a telephone common carrier.
"Person" includes any individual, firm, copartnership, cooperative, nonprofit membership corporation, joint venture, association, corporation, estate, trust, business trust, trustee in bankruptcy, receiver, auctioneer, syndicate, assignee, club, society, or other group or combination acting as a unit, body politic or political subdivision, whether public or private, or quasi-public, and the plural of such term shall mean the same as the singular.
"Prewritten program" means a computer
program that is prepared, held or existing for general or repeated sale or
lease, including a computer program developed for in-house use and subsequently
sold or leased to unrelated third parties.
"Retail sale" or a "sale at retail" means a sale to any person for any purpose other than for resale in the form of tangible personal property or services taxable under this chapter, and shall include any such transaction as the Tax Commissioner upon investigation finds to be in lieu of a sale. All sales for resale must be made in strict compliance with regulations applicable to this chapter. Any dealer making a sale for resale which is not in strict compliance with such regulations shall be personally liable for payment of the tax.
The terms "retail sale" and a "sale at retail" shall specifically include the following: (i) the sale or charges for any room or rooms, lodgings, or accommodations furnished to transients for less than 90 continuous days by any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, or any other place in which rooms, lodging, space, or accommodations are regularly furnished to transients for a consideration; and (ii) sales of tangible personal property to persons for resale when because of the operation of the business, or its very nature, or the lack of a place of business in which to display a certificate of registration, or the lack of a place of business in which to keep records, or the lack of adequate records, or because such persons are minors or transients, or because such persons are engaged in essentially service businesses, or for any other reason there is likelihood that the Commonwealth will lose tax funds due to the difficulty of policing such business operations. The Tax Commissioner is authorized to promulgate regulations requiring vendors of or sellers to such persons to collect the tax imposed by this chapter on the cost price of such tangible personal property to such persons and may refuse to issue certificates of registration to such persons.
The term "transient" shall not include a purchaser
of camping memberships, time-shares, condominiums, or other similar contracts
or interests that permit the use of, or constitute an interest in, real estate,
however created or sold and whether registered with this the
Commonwealth or not. Further, a purchaser of a right or license which entitles
the purchaser to use the amenities and facilities of a specific real estate
project on an ongoing basis throughout its term shall not be deemed a
transient; provided, however, that the term or time period involved is for
seven years or more.
The terms "retail sale" and "sale at retail" shall not include a transfer of title to tangible personal property after its use as tools, tooling, machinery or equipment, including dies, molds, and patterns, if (i) at the time of purchase, the purchaser is obligated, under the terms of a written contract, to make the transfer and (ii) the transfer is made for the same or a greater consideration to the person for whom the purchaser manufactures goods.
"Retailer" means every person engaged in the
business of making sales at retail, or for distribution, use, consumption, or
storage to be used or consumed in this the
Commonwealth.
"Sale" means any transfer of title or possession, or
both, exchange, barter, lease or rental, conditional or otherwise, in any
manner or by any means whatsoever, of tangible personal property and any
rendition of a taxable service
for a consideration, and includes the fabrication of tangible personal property
for consumers who furnish, either directly or indirectly, the materials used in
fabrication, and the furnishing, preparing, or serving for a consideration of
any tangible personal property consumed on the premises of the person
furnishing, preparing, or serving such tangible personal property. A
transaction whereby the possession of property is transferred but the seller
retains title as security for the payment of the price shall be deemed a sale.
"Sales price" means the total amount for which tangible personal property or services are sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser, consumer, or lessee by the dealer, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, losses or any other expenses whatsoever. "Sales price" shall not include (i) any cash discount allowed and taken (ii) finance charges, carrying charges, service charges or interest from credit extended on sales of tangible personal property under conditional sale contracts or other conditional contracts providing for deferred payments of the purchase price, or (iii) separately stated local property taxes collected. Where used articles are taken in trade, or in a series of trades as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference between the sales price of the new or used articles and the credit for the used articles.
"Storage" means any keeping or retention of tangible
personal property for use, consumption or distribution in this the
Commonwealth, or for any purpose other than sale at retail in the regular
course of business.
"Tangible personal property" means personal property which may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses. The term "tangible personal property" shall not include stocks, bonds, notes, insurance or other obligations or securities. The term "tangible personal property" shall include telephone calling cards upon their initial sale, which shall be exempt from all other state and local utility taxes.
"Use" means the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business. The term does not include the exercise of any right or power, including use, distribution, or storage, over any tangible personal property sold to a nonresident donor for delivery outside of the Commonwealth to a nonresident recipient pursuant to an order placed by the donor from outside the Commonwealth via mail or telephone.
"Use tax" refers to the tax imposed upon the use, consumption, distribution, and storage as herein defined.
"Used directly," when used in relation to manufacturing, processing, refining, or conversion, refers to those activities which are an integral part of the production of a product, including all steps of an integrated manufacturing or mining process, but not including ancillary activities such as general maintenance or administration. When used in relation to mining, it shall refer to the activities specified above, and in addition, any reclamation activity of the land previously mined by the mining company required by state or federal law.
"Video programmer" means a person or
entity that provides video programming to end-user subscribers.
"Video programming" means video and/or
information programming provided by or generally considered comparable to
programming provided by a cable operator including, but not limited to,
Internet service.
§ 58.1-603. Imposition of sales tax.
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, leasing, renting, or furnishing services or tangible
personal property in this the
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 the
Commonwealth any item or article of tangible personal property as defined in
this chapter, or who leases or rents such property within this the
Commonwealth, in the amount of three and one-half percent through midnight on
July 31, 2004, and four percent beginning on and after August 1, 2004:
1. Of the gross sales price of each service or
item or article of tangible personal property when sold at retail or, distributed, or furnished
in this the
Commonwealth.
2. Of the gross proceeds derived from the lease or rental of services or tangible personal property, where the lease or rental of such services or 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 the
Commonwealth for use or consumption in this the
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.
§ 58.1-609.10. Miscellaneous exemptions.
The tax imposed by this chapter or pursuant to the authority granted in §§ 58.1-605 and 58.1-606 shall not apply to the following:
1. Artificial or propane gas, firewood, coal or
home heating oil used for domestic consumption. "Domestic
consumption" means the use of artificial or propane gas, firewood, coal or
home heating oil by an individual purchaser for other than business, commercial
or industrial purposes. The Tax Commissioner shall establish by regulation a
system for use by dealers in classifying individual purchases for domestic or
nondomestic use based on the principal usage of such gas, wood, coal or oil.
Any person making a nondomestic purchase and paying the tax pursuant to this
chapter who uses any portion of such purchase for domestic use may, between the
first day of the first month and the fifteenth day of the fourth month
following the year of purchase, apply for a refund of the tax paid on the domestic
use portion.
21. An
occasional sale, as defined in § 58.1-602.
52.
Tangible personal property purchased with food coupons issued by the United
States Department of Agriculture under the Food Stamp Program or drafts issued
through the Virginia Special Supplemental Food Program for Women, Infants, and
Children.
6. Tangible personal property purchased for use or
consumption in the performance of maintenance and repair services at Nuclear
Regulatory Commission-licensed nuclear power plants located outside the
Commonwealth.
7. Beginning July 1, 1997, and ending July 1, 2006,
a professional's provision of original, revised, edited, reformatted or copied
documents, including but not limited to documents stored on or transmitted by
electronic media, to its client or to third parties in the course of the
professional's rendition of services to its clientele.
83.
School lunches sold and served to pupils and employees of schools and
subsidized by government; school textbooks sold by a local board or
authorized agency thereof; and school textbooks sold for use by students
attending a nonprofit college or other institution of learning, when sold (i)
by such institution of learning or (ii) by any other dealer, when such
textbooks have been certified by a department or instructor of such institution
of learning as required textbooks for students attending courses at such
institution.
94.
Medicines, drugs, hypodermic syringes, artificial eyes, contact lenses,
eyeglasses, eyeglass cases, and contact lens storage containers when
distributed free of charge, all solutions or sterilization kits or other
devices applicable to the wearing or maintenance of contact lenses or
eyeglasses when distributed free of charge, and hearing aids dispensed by or
sold on prescriptions or work orders of licensed physicians, dentists,
optometrists, ophthalmologists, opticians, audiologists, hearing aid dealers
and fitters, nurse practitioners, physician assistants, and veterinarians;
controlled drugs purchased for use by a licensed physician, optometrist,
licensed nurse practitioner, or licensed physician assistant in his
professional practice, regardless of whether such practice is organized as a
sole proprietorship, partnership, or professional corporation, or any other
type of corporation in which the shareholders and operators are all licensed
physicians, optometrists, licensed nurse practitioners, or licensed physician
assistants engaged in the practice of medicine, optometry, or nursing, but
excluding nursing homes, clinics, and similar corporations not otherwise exempt
under this section; medicines and drugs purchased for use or consumption by a
licensed hospital; and samples of prescription drugs and medicines and their
packaging distributed free of charge to authorized recipients in accordance
with the federal Food, Drug, and Cosmetic Act (21 U.S.C.A. § 301 et seq., as
amended). Any veterinarian dispensing or selling medicines or drugs on
prescription shall be deemed to be the user or consumer of all such medicines
and drugs.
105. Wheelchairs
and parts therefor, braces, crutches, prosthetic devices, orthopedic
appliances, catheters, urinary accessories, other durable medical equipment and
devices, and related parts and supplies specifically designed for those
products; and insulin and insulin syringes, and equipment, devices or chemical
reagents that may be used by a diabetic to test or monitor blood or urine, when
such items or parts are purchased by or on behalf of an individual for use by
such individual. Durable medical equipment is equipment that (i) can withstand
repeated use, (ii) is primarily and customarily used to serve a medical
purpose, (iii) generally is not useful to a person in the absence of illness or
injury, and (iv) is appropriate for use in the home.
116.
Drugs and supplies used in hemodialysis and peritoneal dialysis.
127.
Special equipment installed on a motor vehicle when purchased by a handicapped
person to enable such person to operate the motor vehicle.
138.
Special typewriters and computers and related parts and supplies specifically
designed for those products used by handicapped persons to communicate when
such equipment is prescribed by a licensed physician.
149. a.
(i) Any nonprescription drugs and proprietary medicines purchased for the cure,
mitigation, treatment, or prevention of disease in human beings and (ii) any
samples of nonprescription drugs and proprietary medicines distributed free of
charge by the manufacturer, including packaging materials and constituent
elements and ingredients.
b. The terms "nonprescription drugs" and "proprietary medicines" shall be defined pursuant to regulations promulgated by the Department of Taxation. The exemption authorized in this subdivision shall not apply to cosmetics.
15. Tangible personal property withdrawn from
inventory and donated to (i) an organization exempt from taxation under § 501
(c) (3) of the Internal Revenue Code or (ii) the Commonwealth, any political
subdivision of the Commonwealth, or any school, agency, or instrumentality
thereof.
16. Tangible personal property, except property
used in any form for recording and reproducing services, purchased by nonprofit
churches that are exempt from taxation under § 501 (c) (3) of the Internal
Revenue Code, or whose real property is exempt from local taxation pursuant to
the provisions of § 58.1-3606, for use (i) in religious worship services by a
congregation or church membership while meeting together in a single location
and (ii) in the libraries, offices, meeting or counseling rooms or other rooms
in the public church buildings used in carrying out the work of the church and
its related ministries, including kindergarten, elementary and secondary
schools. The exemption for such churches shall also include baptistries;
bulletins, programs, newspapers and newsletters that do not contain paid
advertising and are used in carrying out the work of the church; gifts
including food for distribution outside the public church building; and food,
disposable serving items, cleaning supplies and teaching materials used in the
operation of camps or conference centers by the church or an organization
composed of churches that are exempt under this subdivision and which are used
in carrying out the work of the church or churches.
1710.
Medical products and supplies, which are otherwise taxable, such as bandages,
gauze dressings, incontinence products and wound-care products, when purchased
by a Medicaid recipient through a Department of Medical Assistance Services
provider agreement.
11. (i) Industrial materials for future processing, manufacturing, refining, or conversion into articles of tangible personal property for resale where such industrial materials either enter into the production of or become a component part of the finished product; (ii) industrial materials that are coated upon or impregnated into the product at any stage of its being processed, manufactured, refined, or converted for resale; (iii) machinery or tools or repair parts therefor or replacements thereof, fuel, power, energy, or supplies, used directly in processing, manufacturing, refining, mining or converting products for sale or resale; (iv) materials, containers, labels, sacks, cans, boxes, drums, or bags for future use for packaging tangible personal property for shipment or sale; or (v) equipment, printing, or supplies used directly to produce a publication described in subdivision 3 of former § 58.1-609.6 whether it is ultimately sold at retail or for resale or distribution at no cost. Machinery, tools, and equipment, or repair parts therefor or replacements thereof, shall be exempt if the preponderance of their use is directly in processing, manufacturing, refining, mining or converting products for sale or resale. The provisions of this subsection do not apply to the drilling, extraction, refining, or processing of oil, gas, natural gas, and coalbed methane gas. In addition, the exemption provided herein shall not be applicable to any machinery, tools, and equipment, or any other tangible personal property used by a public service corporation in the generation of electric power, except for raw materials that are inputs to production of electricity, including fuel.
12. Food for human consumption. "Food for human consumption" means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. "Food for human consumption" does not include alcoholic beverages or tobacco.
13. Personal property purchased by a contractor, which is used solely in another state or in a foreign country, which could be purchased by such contractor for such use free from sales tax in such other state or foreign country, and which is stored temporarily in Virginia pending shipment to such state or country.
14. Meals furnished by restaurants or food service operators to employees as a part of wages.
15. The sale or charges for any room or rooms, lodgings, or accommodations furnished to transients for more than 90 continuous days by any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, or any other place in which rooms, lodging, space or accommodations are regularly furnished to transients for a consideration.
16. Raw materials, fuel, power, energy, supplies, machinery or tools or repair parts therefor or replacements thereof, used directly in the drilling, extraction, refining, or processing of natural gas or oil and the reclamation of the well area. For the purposes of this section, the term "natural gas" shall mean "gas," "natural gas," and "coalbed methane gas" as defined in § 45.1-361.1. For the purposes of this section, "drilling," "extraction," "refining," and "processing" shall include production, inspection, testing, dewatering, dehydration, or distillation of raw natural gas into a usable condition consistent with commercial practices, and the gathering and transportation of raw natural gas to a facility wherein the gas is converted into such a usable condition. Machinery, tools, and equipment, or repair parts therefor or replacements thereof, shall be exempt if the preponderance of their use is directly in the drilling, extraction, refining, or processing of natural gas or oil for sale or resale, or in well area reclamation activities required by state or federal law.
17. Services when purchased by a business for business purposes when the cost of the service may be deducted by the business as a business expense for federal income tax purposes. "Business" means any activity engaged in by any person or entity for gain.
18. Services provided by an employee for his employer.
19. Medical services as enumerated in the Standard Industrial Classification Manual, 1987 as prepared by the Statistical Policy Division of the Office of Management and Budget, Office of the President, as major group 80.
§ 58.1-610. Contractors.
A. Any person who contracts orally, in writing, or by purchase order, to perform construction, reconstruction, installation, repair, or any other service with respect to real estate or fixtures thereon, and in connection therewith to furnish tangible personal property, shall be deemed to have purchased such tangible personal property for use or consumption. Any sale, distribution, or lease to or storage for such person shall be deemed a sale, distribution, or lease to or storage for the ultimate consumer and not for resale, and the dealer making the sale, distribution, or lease to or storage for such person shall be obligated to collect the tax to the extent required by this chapter.
B. Any person who contracts to perform services in this the Commonwealth and is furnished
tangible personal property for use under the contract by the person, or his
agent or representative, for whom the contract is performed, and a sales or use
tax has not been paid to this the
Commonwealth by the person supplying the tangible personal property, shall be
deemed to be the consumer of the tangible personal property so used, and shall
pay a use tax based on the fair market value of the tangible personal property
so used, irrespective of whether or not any right, title or interest in the
tangible personal property becomes vested in the contractor. This subsection,
however, shall not apply to the industrial materials exclusion or the
other industrial exclusions set out in § 58.1-609.3,
including those set out in subdivisions 2, 3 and 4 thereof; the media-related
exemptions set out in subdivision 2 of § 58.1-609.6; subdivision 11 of §
58.1-609.10 or the
governmental exclusions set out in subdivision 4 of § 58.1-609.1; the
agricultural exclusions set forth in subdivision 1 of § 58.1-609.2; or the
exclusion for baptistries set forth in former subdivision 2 of § 58.1-609.8.
C. Any person who contracts orally, in writing, or by purchase order to perform any service in the nature of equipment rental, and the principal part of that service is the furnishing of equipment or machinery which will not be under the exclusive control of the contractor, shall be liable for the sales or use tax on the gross proceeds from such contract to the same extent as the lessor of tangible personal property.
D. Tangible personal property incorporated in real property construction which loses its identity as tangible personal property shall be deemed to be tangible personal property used or consumed within the meaning of this section. Any person selling fences, venetian blinds, window shades, awnings, storm windows and doors, locks and locking devices, floor coverings (as distinguished from the floors themselves), cabinets, kitchen equipment, window air conditioning units or other like or comparable items, shall be deemed to be a retailer of such items and not a using or consuming contractor with respect to them, whether he sells to and installs such items for contractors or other customers and whether or not such retailer fabricates such items.
E. Nothing in this section shall be construed to (i) affect or
limit the resale exclusion provided for in this chapter, or the industrial
materials and other industrial exclusions set
out in § 58.1-609.3, the exclusion
for baptistries set out in former subdivision 2 of § 58.1-609.8, or the partial
exclusion for the sale of modular buildings as set out in § 58.1-610.1
subdivision 11 of §
58.1-609.10, or (ii) impose any sales or use tax
with respect to the use in the performance of contracts with the United States, this the Commonwealth, or any political
subdivision thereof, of tangible personal property owned by a governmental body
which actually is not used or consumed in the performance thereof.
F. Notwithstanding the other provisions of this section, any person engaged in the business of furnishing and installing locks and locking devices shall be deemed a retailer of such items and not a using or consuming contractor with respect to them.
§ 58.1-612. Tax collectible from dealers; "dealer" defined; jurisdiction.
A. The tax levied by §§ 58.1-603 and 58.1-604 shall be collectible from all persons who are dealers, as hereinafter defined, and who have sufficient contact with the Commonwealth to qualify under subsections B and C hereof.
B. The term "dealer," as used in this chapter, shall include every person who:
1. Manufactures or produces services or tangible
personal property for sale at retail, for use, consumption, or distribution, or
for storage to be used or consumed in this the Commonwealth;
2. Imports or causes to be imported into this the
Commonwealth services or tangible personal
property from any state or foreign country, for sale at retail, for use,
consumption, or distribution, or for storage to be used or consumed in this the Commonwealth;
3. Sells at retail, or who offers for sale at retail, or who
has in his possession for sale at retail, or for use, consumption, or
distribution, or for storage to be used or consumed in this the
Commonwealth, services or tangible personal property;
4. Has sold at retail, used, consumed, distributed, furnished,
or stored for use or consumption in this the
Commonwealth, services or tangible personal property
and who cannot prove that the tax levied by this chapter has been paid on the
sale at retail, the use, consumption, distribution, or storage of such services
or tangible personal property;
5. Leases or rents services or tangible personal property for a consideration, permitting the use or possession of such services or property without transferring title thereto;
6. Is the lessee or rentee of services or tangible personal property and who pays to the owner of such services or property a consideration for the use or possession of such services or property without acquiring title thereto;
7. As a representative, agent, or solicitor, of an
out-of-state principal, solicits, receives and accepts orders from persons in this the Commonwealth for future delivery
and whose principal refuses to register as a dealer under § 58.1-613; or
8. Becomes liable to and owes this the
Commonwealth any amount of tax imposed by this chapter, whether he holds, or is
required to hold, a certificate of registration under § 58.1-613.
C. A dealer shall be deemed to have sufficient activity within the Commonwealth to require registration under § 58.1-613 if he:
1. Maintains or has within this the
Commonwealth, directly or through an agent or subsidiary, an office, warehouse,
or place of business of any nature;
2. Solicits business in this the
Commonwealth by employees, independent contractors, agents or other
representatives;
3. Advertises in newspapers or other periodicals printed and
published within this the
Commonwealth, on billboards or posters located in this the
Commonwealth, or through materials distributed in this the
Commonwealth by means other than the United States mail;
4. Makes regular deliveries of tangible personal property
within this the Commonwealth
by means other than common carrier or regularly causes
services to be rendered within
the Commonwealth more than 12 times
during a calendar year. A person shall be deemed to be making
regular deliveries hereunder if vehicles other than those operated by a common
carrier enter this the
Commonwealth more than twelve12 times
during a calendar year to deliver goods sold by him;
5. Solicits business in this the
Commonwealth on a continuous, regular, seasonal, or systematic basis by means
of advertising that is broadcast or relayed from a transmitter within this the Commonwealth or distributed from
a location within this the
Commonwealth;
6. Solicits business in this the
Commonwealth by mail, if the solicitations are continuous, regular, seasonal,
or systematic and if the dealer benefits from any banking, financing, debt
collection, or marketing activities occurring in this the
Commonwealth or benefits from the location in this the
Commonwealth of authorized installation, servicing, or repair facilities;
7. Is owned or controlled by the same interests which own or
control a business located within this the
Commonwealth;
8. Has a franchisee or licensee operating under the same trade
name in this the
Commonwealth if the franchisee or licensee is required to obtain a certificate
of registration under § 58.1-613; or
9. Owns tangible personal property that is rented or leased to
a consumer in this the
Commonwealth, or offers tangible personal property,
on approval, to consumers in this the
Commonwealth, or rents, leases, or
offers, on approval, services to
consumers in the Commonwealth.
D. Notwithstanding any other provision of this section, the following shall not be considered to determine whether a person who has contracted with a commercial printer for printing in the Commonwealth is a "dealer" and whether such person has sufficient contact with the Commonwealth to be required to register under § 58.1-613:
1. The ownership or leasing by that person of tangible or intangible property located at the Virginia premises of the commercial printer which is used solely in connection with the printing contract with the person;
2. The sale by that person of property of any kind printed at and shipped or distributed from the Virginia premises of the commercial printer;
3. Activities in connection with the printing contract with the person performed by or on behalf of that person at the Virginia premises of the commercial printer; and
4. Activities in connection with the printing contract with the person performed by the commercial printer within Virginia for or on behalf of that person.
E. In addition to the jurisdictional standards contained in
subsection C of this section, nothing contained herein (other than subsection
D) shall limit any authority which this the
Commonwealth may enjoy under the provisions of federal law or an opinion of the
United States Supreme Court to require the collection of sales and use taxes by
any dealer who regularly or systematically solicits sales within this the Commonwealth. Furthermore,
nothing contained in subsection C shall require any broadcaster, printer,
outdoor advertising firm, advertising distributor, or publisher which
broadcasts, publishes, or displays or distributes paid commercial advertising
in this the
Commonwealth which is intended to be disseminated primarily to consumers
located in this the
Commonwealth to report or impose any liability to pay any tax imposed under
this chapter solely because such broadcaster, printer, outdoor advertising
firm, advertising distributor, or publisher accepted such advertising contracts
from out-of-state advertisers or sellers.
§ 58.1-615. Returns by dealers.
A. Every dealer required to collect or
pay the sales or use tax shall, on or before the twentieth day of the month
following the month in which the tax shall become effective, transmit to the
Tax Commissioner a return showing the gross sales, gross proceeds, or cost
price, as the case may be, arising from all transactions taxable under this
chapter during the preceding calendar month, and thereafter a like return shall
be prepared and transmitted to the Tax Commissioner by every dealer on or
before the twentieth day of each month, for the preceding calendar month. In
the case of dealers regularly keeping books and accounts on the basis of an
annual period which varies fifty-two 52 to fifty-three 53 weeks, the Tax Commissioner may
make rules and regulations for reporting consistent with such accounting
period.
Notwithstanding any other provision of this chapter, a dealer may be required by the Tax Commissioner to file sales or use tax returns on an accounting period less frequent than monthly when, in the opinion of the Tax Commissioner, the administration of the taxes imposed by this chapter would be enhanced. If a dealer is required to file other than monthly, each such return shall be due on or before the twentieth day of the month following the close of the period. Each such return shall contain all information required for monthly returns.
A sales or use tax return shall be filed by each registered dealer even though the dealer is not liable to remit to the Tax Commissioner any tax for the period covered by the return.
B. 1. In addition to the amounts required under the
provisions of this section and § 58.1-616, any dealer as defined by § 58.1-612
or direct payment permit holder pursuant to § 58.1-624, with taxable sales and
purchases of $1,300,000 or greater for the twelve-month period beginning July
1, and ending June 30 of the immediately preceding calendar year, shall be
required to make a payment equal to 90 percent of the sales and use tax
liability for the previous June. Such tax payments shall be made on or before
the 30th day of June, if payment is made by electronic funds transfer, as
defined in § 58.1-202.1. If payment is made by other than electronic funds
transfer, such payment shall be made on or before the 25th day of June. For
purposes of this provision, taxable sales or purchases shall be computed
without regard to the number of certificates of registration held by the
dealer. Every dealer or direct payment permit holder shall be entitled to a
credit for the payment under this subsection on the return for June of the
current year due July 20. The provisions of this subsection shall not apply to
persons who are required to file only a Form ST-7, Consumer User Tax Return.
2. In lieu of the penalties provided in § 58.1-635,
except with respect to fraudulent returns, failure to make a timely payment or
full payment of the sales and use tax liability as provided in this subsection
shall subject the dealer or direct payment permit holder to a penalty of six
percent of the amount of tax underpayment that should have been properly paid
to the Tax Commissioner. Interest will accrue as provided in § 58.1-15. The
payment required by this subsection shall become delinquent on the first day
following the due date set forth in this subsection if not paid.
§ 58.1-623. Sales or leases presumed subject to tax; exemption certificates.
A. All sales or leases are subject to the tax until the contrary is established. The burden of proving that a sale, distribution, or lease of services or tangible personal property, or the storage of tangible personal property is not taxable is upon the dealer unless he takes from the taxpayer a certificate to the effect that the property is exempt under this chapter.
B. The certificate mentioned in this section shall relieve the
person who takes such certificate from any liability for the payment or
collection of the tax, except upon notice from the Tax Commissioner that such
certificate is no longer acceptable. Such certificate shall be signed by and
bear the name and address of the taxpayer; shall indicate the number of the
certificate of registration, if any, issued to the taxpayer; shall indicate the
general character of the tangible personal property sold, distributed, leased,
or stored, or to be sold, distributed, leased, or stored under a blanket
exemption certificate; and shall be substantially in such form as the Tax
Commissioner may prescribe. If an exemption pertains to a nonprofit
organization, other than a nonprofit church, that has qualified for a sales and
use tax exemption under § 58.1-609.11, the exemption certificate shall be valid
until the scheduled expiration date stated on the exemption certificate.
C. If a taxpayer who gives a certificate under this section makes any use of the property other than an exempt use or retention, demonstration, or display while holding the property for resale, distribution, or lease in the regular course of business, such use shall be deemed a taxable sale by the taxpayer as of the time the property or service is first used by him, and the cost of the property to him shall be deemed the sales price of such retail sale. If the sole use of the property other than retention, demonstration, or display in the regular course of business is the rental of the property while holding it for sale, distribution, or lease, the taxpayer may elect to pay the tax on the amount of the rental charged, rather than the cost of the property to him.
D. If a taxpayer gives a certificate under this section with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased, but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales or distributions from the mass of commingled goods shall be deemed to be sales or distributions of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold or distributed.
§ 58.1-629. Sale of business.
If any dealer liable for any tax, penalty, or interest levied
hereunder sells out his business or stock of goods or quits the business, he
shall make a final return and payment within fifteen 15
days after the date of selling or quitting the business. His successors or
assigns, if any, shall withhold sufficient of the purchase money to cover the
amount of such taxes, penalties, and interest due and unpaid until such former
owner produces a receipt from the Tax Commissioner showing that they have been
paid or a certificate stating that no taxes, penalties, or interest is due. If
the purchaser of a business or stock of goods fails to withhold the purchase
money as above provided, he shall be personally liable for the payment of the
taxes, penalties, and interest due and unpaid on account of the operation of
the business by any former owner. Nothing herein shall be
deemed to qualify or limit the exemption as to such a sale as is covered by
subdivision 2 of § 58.1-609.10.
§ 58.1-901. Definitions.
As used in this chapter, unless the context clearly shows otherwise, the term or phrase:
"Decedent" means a deceased person.
"Federal credit" means the maximum amount of the
credit for state death taxes allowable by § 2011 of the United States Internal
Revenue Code of 1954, as amended or renumbered, or successor provision, in respect
to a decedent's taxable estate. The term "maximum amount" shall be
construed as to take full advantage of such credit as the laws of the United
States may allow. In no event, however, shall such amount be less
than the federal credit allowable by § 2011 of the Internal Revenue Code as it
existed on January 1, 1978.
"Gross estate" means "gross estate" as defined in § 2031 of the United States Internal Revenue Code of 1954, as amended or renumbered, or the successor provision of the laws of the United States.
"Nonresident" means a decedent who was domiciled outside of the Commonwealth of Virginia at his death.
"Personal representative" means the personal representative of the estate of the decedent, appointed, qualified and acting within the Commonwealth, or, if there is no personal representative appointed, qualified and acting within the Commonwealth, then any person in actual or constructive possession of the Virginia gross estate of the decedent.
"Resident" means a decedent who was domiciled in the Commonwealth of Virginia at his death.
"State" means any state, territory or possession of the United States and the District of Columbia.
"Taxable estate" means "taxable estate" as defined in § 2051 of the United States Internal Revenue Code of 1954, as amended or renumbered, or the successor provision of the laws of the United States.
"Value" means "value" as finally determined for federal estate tax purposes under the laws of the United States relating to federal estate taxes.
Any reference in this chapter to the laws of the United States relating to federal estate and gift taxes means the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal estate and gift taxes, as the same may be or become effective at any time or from time to time.
§ 58.1-1720. Sales tax on fuel in certain transportation districts.
A. There is hereby levied, in addition to all other taxes imposed on fuels subject to tax under Chapter 21 (§ 58.1-2100 et seq.) of this title, in every county or city which is a member of any transportation district in which a rapid heavy rail commuter mass transportation system operating on an exclusive right-of-way and a bus commuter mass transportation system are owned, operated or controlled, by an agency or a commission as defined in § 15.2-4502, or in any transportation district which is subject to § 15.2-4515 C and which is contiguous to the Northern Virginia Transportation District, a sales tax of two percent of the retail price of such fuels sold within such county or city. As used in this section "retail sale" means a sale to a consumer or to any person for any purpose other than resale.
B. The tax imposed under this section shall be subject to the
provisions of the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.),
except that the exemption provided for motor vehicle fuels
under § 58.1-609.13, and the bracket system provided in such act,
shall not be applicable.
§ 58.1-2401. Definitions.
As used in this chapter, unless the context clearly shows otherwise, the term or phrase:
"Commissioner" shall mean the Commissioner of the Department of Motor Vehicles of the Commonwealth.
"Daily rental vehicle" shall mean a motor vehicle, except a motorcycle or a manufactured home as defined in § 46.2-100, used for rental as defined in this section and for the transportation of persons or property, whether on its own structure or by drawing another vehicle or vehicles.
"Department" shall mean the Department of Motor
Vehicles of this the
Commonwealth, acting through its duly authorized officers and agents.
"Gross proceeds" shall mean the charges made or
voluntary contributions received for the rental of a motor vehicle where the
rental or lease agreement is for a period of less than twelve12
months.
"Mobile office" shall mean an industrialized building unit not subject to the federal regulation, which may be constructed on a chassis for the purpose of towing to the point of use and designed to be used with or without a permanent foundation, for commercial use and not for residential use; or two or more such units separately towable, but designed to be joined together at the point of use to form a single commercial structure, and which may be designed for removal to, and installation or erection on other sites.
"Motor vehicle" shall mean every vehicle, except for
mobile office as herein defined, which is self-propelled or designed for
self-propulsion and every vehicle drawn by or designed to be drawn by a motor
vehicle, including manufactured homes as defined in § 46.2-100 and every device
in, upon and by which any person or property is, or can be, transported or
drawn upon a highway, but excepting devices moved by human or animal power,
devices used exclusively upon stationary rails or tracks and vehicles, other
than manufactured homes, used in this the
Commonwealth but not required to be licensed by the Commonwealth.
"Rental" shall mean the transfer of the possession
or use of a motor vehicle, whether or not the motor vehicle is required to be
licensed by the Commonwealth, by a person for a consideration, without the
transfer of the ownership of such motor vehicle, for a period of less than twelve 12
months. Any fee arrangement between the holder of a permit issued by the State
Corporation Commission or the Department for taxicab services and the driver or
drivers of such taxicabs shall not be deemed a rental under this section.
"Rental in the Commonwealth" shall mean any rental where a person received delivery of a motor vehicle within the Commonwealth. The term "Commonwealth" shall include all land or interest in land within the Commonwealth owned by or conveyed to the United States of America.
"Rentor" shall mean a person engaged in the rental of motor vehicles for consideration as defined in this section.
"Sale" shall mean any transfer of ownership or possession, by exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of a motor vehicle. The term shall also include a transaction whereby possession is transferred but title is retained by the seller as security. The term shall not include a transfer of ownership or possession made to secure payment of an obligation, nor shall it include a refund for, or replacement of, a motor vehicle of equivalent or lesser value pursuant to the Virginia Motor Vehicle Warranty Enforcement Act (§ 59.1-207.9 et seq.). Where the replacement motor vehicle is of greater value than the motor vehicle replaced, only the difference in value shall constitute a sale.
"Sale price" shall mean the total price paid for a
motor vehicle and all attachments thereon and accessories thereto, as
determined by the Commissioner, less the amount of
any allowance given by the seller for a motor vehicle taken in trade as a
partial payment for the purchased motor vehicle, and exclusive of
any federal manufacturers' excise tax, without any allowance or deduction for trade-ins
or unpaid liens or encumbrances.
However, "sale price" shall not include the cost of controls, lifts,
automatic transmission, power steering, power brakes or any other equipment
installed in or added to a motor vehicle which is required by law or regulation
as a condition for operation of a motor vehicle by a handicapped person.
§ 58.1-2402. Levy.
A. There is hereby levied, in addition to all other taxes and fees of every kind now imposed by law, a tax upon the sale or use of motor vehicles in Virginia, other than (i) vehicles with a gross vehicle weight rating or gross combination weight rating of 26,001 pounds or more, or (ii) a sale to or use by a person for rental as an established business or part of an established business or incidental or germane to such business.
There shall also be levied a tax upon the rental of a motor vehicle in Virginia, without regard to whether such vehicle is required to be licensed by the Commonwealth. However, such tax shall not be levied upon a rental to a person for re-rental as an established business or part of an established business, or incidental or germane to such business.
The amount of the tax to be collected shall be determined by the Commissioner by the application of the following rates against the gross sales price or gross proceeds:
1. ThreeFour
percent of the sale price of each motor vehicle sold in Virginia. If suchthe
motor vehicle is a manufactured home as defined in § 36-85.3, the tax shall be threefour
percent of the sale price of each such manufactured home sold in this the Commonwealth; if suchthe
vehicle is a mobile office as defined in § 58.1-2401, the tax shall be twothree
percent of the sale price of each mobile office sold in this the
Commonwealth.
2. ThreeFour
percent of the sale price of each motor vehicle, or threefour
percent of the sale price of each manufactured home as defined in § 36-85.3, or
twothree
percent of the sale price of each mobile office as defined in § 58.1-2401, not
sold in Virginia but used or stored for use in this the
Commonwealth. When any such motor vehicle or manufactured home is first used or
stored for use in Virginia six months or more after its acquisition, the tax
shall be based on its current market value.
3. Four percent of the gross proceeds from the rental in Virginia of any motor vehicle, except those with a gross vehicle weight rating or gross combination weight rating of 26,001 pounds or more.
4. In addition to the tax levied pursuant to subdivision A 3, a tax of four percent of the gross proceeds shall be levied on the rental in Virginia of any daily rental vehicle, whether or not such vehicle is required to be licensed in the Commonwealth.
5. In addition to all other applicable taxes and fees, a fee of two percent of the gross proceeds shall be imposed on the rental in Virginia of any daily rental vehicle, whether or not such vehicle is required to be licensed in the Commonwealth.
6. The minimum tax levied on the sale of any motor vehicle in the Commonwealth shall be $35, except as provided by those exemptions defined in § 58.1-2403.
B. A transaction taxed under subdivision A 1 shall not also be taxed under subdivision A 2, nor shall the same transaction be taxed more than once under either subdivision. A motor vehicle subject to the tax imposed under subdivision A 3 shall be subject to the tax under either subdivision A 1 or A 2 when it ceases to be used for rental as an established business or part of an established business, or incidental or germane to such business.
C. Any motor vehicle, trailer or semitrailer exempt from this
tax under subdivision 1 or 2 of § 58.1-2403 shall be subject to the tax, based
on the current market value when such vehicle is no longer owned, rented or
used by the United States government or any governmental agency, or the
Commonwealth of Virginia or any political subdivision thereof. Further, any
motor vehicle, trailer or semitrailer exempt from the tax imposed by this
chapter under subdivision 11 of § 58.1-2403 or §§ 46.2-663 through 46.2-674
shall be subject to the tax, based on the current market value, when such
vehicle is subsequently licensed to operate on the highways of this the Commonwealth.
D. Any person who with intent to evade or to aid another person to evade the tax provided for herein, falsely states the selling price of a vehicle on a bill of sale, assignment of title, application for title, or any other document or paper submitted to the Commissioner pursuant to any provisions of this title or Title 46.2, shall be guilty of a Class 3 misdemeanor.
E. Effective January 1, 1997, any amount designated as a "processing fee" and any amount charged by a dealer for processing a transaction, which is required to be included on a buyer's order pursuant to subdivision 10 of § 46.2-1530, shall be subject to the tax.
§ 58.1-2405. Basis of tax.
A. In the case of the sale or use of a motor vehicle upon
which the pricing information is required by federal law to be posted, the
Commissioner may collect the tax upon the
basis of thecalculate the sale price as defined in § 58.1-2401 by using the total sale price
shown on such document; however, if the Commissioner is satisfied that the
purchaser has paid less than such price, by such evidence as the Commissioner
may require, he may assess and collect calculate the
tax upon the basis of the sale price so found by him. In no case shall such
lesser price include credits for trade-in or any other transaction of such
nature.
B. In the case of the sale or use of a motor vehicle which is
not a new motor vehicle, the Commissioner may employ such publications, sources
of information, and other data as are customarily employed in ascertainingcalculating
the maximum sale price of such used motor vehicles but in no case shall any
credit be allowed for trade-in, prior rental or any other
transaction of like nature.
C. In the case of the sale or use of a motor vehicle, which is
not a new motor vehicle, between individuals who are not required to be
licensed as dealers or salespersons under the provisions of §§ 46.2-1508 and
46.2-1908, the Commissioner may collectcalculate
the tax upon the basis of the total sale price as established by such evidence
as the Commissioner may require; provided that if such motor vehicle is no more
than five years old and is listed in a recognized pricing guide, the total sale
price shall not be less than the value listed in such pricing guide for such
vehicle, less an allowance of $1,500, unless the purchaser shall execute an
affidavit under penalty of perjury stating a lesser total sale price and
declaring such sale or use to be a bona fide transaction for full value. In
using a recognized pricing guide, the Commissioner shall use the trade-in value
specified in such guide, with no additions for optional equipment or
subtractions for mileage, so long as uniformly applied for all types of motor
vehicles. In no case shall any credit be allowed for trade-in, prior
rental or any other transaction of like nature.
§ 58.1-3506. Other classifications of tangible personal property for taxation.
A. The items of property set forth below are each declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of tangible personal property provided in this chapter:
1. Boats or watercraft weighing five tons or more;
2. Aircraft having a maximum passenger seating capacity of no more than 50 which are owned and operated by scheduled air carriers operating under certificates of public convenience and necessity issued by the State Corporation Commission or the Civil Aeronautics Board;
3. All other aircraft not included in subdivision A 2 and flight simulators;
4. Antique motor vehicles as defined in § 46.2-100 which may be used for general transportation purposes as provided in subsection C of § 46.2-730;
5. Tangible personal property used in a research and development business;
6. Heavy construction machinery, including but not limited to land movers, bulldozers, front-end loaders, graders, packers, power shovels, cranes, pile drivers, forest harvesting and silvicultural activity equipment and ditch and other types of diggers;
7. Generating equipment purchased after December 31, 1974, for the purpose of changing the energy source of a manufacturing plant from oil or natural gas to coal, wood, wood bark, wood residue, or any other alternative energy source for use in manufacturing and any cogeneration equipment purchased to achieve more efficient use of any energy source. Such generating equipment and cogeneration equipment shall include, without limitation, such equipment purchased by firms engaged in the business of generating electricity or steam, or both;
8. Vehicles without motive power, used or designed to be used as manufactured homes as defined in § 36-85.3;
9. Computer hardware used by businesses primarily engaged in providing data processing services to other nonrelated or nonaffiliated businesses;
10. Privately owned pleasure boats and watercraft, 18 feet and over, used for recreational purposes only;
11. Privately owned vans with a seating capacity of not less than seven nor more than 15 persons, including the driver, used exclusively pursuant to a ridesharing arrangement as defined in § 46.2-1400;
12. Motor vehicles specially equipped to provide transportation for physically handicapped individuals;
13. Motor vehicles (i) owned by members of a volunteer rescue squad or volunteer fire department or (ii) leased by members of a volunteer rescue squad or volunteer fire department if the member is obligated by the terms of the lease to pay tangible personal property tax on the motor vehicle. One motor vehicle which is owned by each volunteer rescue squad member or volunteer fire department member, or leased by each volunteer rescue squad member or volunteer fire department member if the member is obligated by the terms of the lease to pay tangible personal property tax on the motor vehicle, may be specially classified under this section, provided the volunteer rescue squad member or volunteer fire department member regularly responds to emergency calls. The volunteer shall furnish the commissioner of revenue, or other assessing officer, with a certification by the chief or head of the volunteer organization, that the volunteer is a member of the volunteer rescue squad or fire department who regularly responds to calls or regularly performs other duties for the rescue squad or fire department, and the motor vehicle owned or leased by the volunteer rescue squad member or volunteer fire department member is identified. The certification shall be submitted by January 31 of each year to the commissioner of revenue or other assessing officer; however, the commissioner of revenue or other assessing officer shall be authorized, in his discretion, and for good cause shown and without fault on the part of the member, to accept a certification after the January 31 deadline. In any county which prorates the assessment of tangible personal property pursuant to § 58.1-3516, a replacement vehicle may be certified and classified pursuant to this subsection when the vehicle certified as of the immediately prior January date is transferred during the tax year;
14. Motor vehicles (i) owned by auxiliary members of a volunteer rescue squad or volunteer fire department or (ii) leased by auxiliary members of a volunteer rescue squad or volunteer fire department if the member is obligated by the terms of the lease to pay tangible personal property tax on the motor vehicle. One motor vehicle which is regularly used by each auxiliary volunteer fire department or rescue squad member may be specially classified under this section. The auxiliary member shall furnish the commissioner of revenue, or other assessing officer, with a certification by the chief or head of the volunteer organization, that the volunteer is an auxiliary member of the volunteer rescue squad or fire department who regularly performs duties for the rescue squad or fire department, and the motor vehicle is identified as regularly used for such purpose; however, if a volunteer rescue squad or fire department member and an auxiliary member are members of the same household, that household shall be allowed no more than two special classifications under this subdivision or subdivision 13 of this section. The certification shall be submitted by January 31 of each year to the commissioner of revenue or other assessing officer; however, the commissioner of revenue or other assessing officer shall be authorized, in his discretion, and for good cause shown and without fault on the part of the member, to accept a certification after the January 31 deadline;
15. Motor vehicles owned by a nonprofit organization and used to deliver meals to homebound persons or provide transportation to senior or handicapped citizens in the community to carry out the purposes of the nonprofit organization;
16. Privately owned camping trailers as defined in § 46.2-100, and privately owned travel trailers as defined in § 46.2-1900, which are used for recreational purposes only, and privately owned trailers as defined in § 46.2-100 that are designed and used for the transportation of horses except those trailers described in subdivision A 11 of § 58.1-3505;
17. One motor vehicle owned and regularly used by a veteran who has either lost, or lost the use of, one or both legs, or an arm or a hand, or who is blind or who is permanently and totally disabled as certified by the Department of Veterans Services. In order to qualify, the veteran shall provide a written statement to the commissioner of revenue or other assessing officer from the Department of Veterans Services that the veteran has been so designated or classified by the Department of Veterans Services as to meet the requirements of this section, and that his disability is service-connected. For purposes of this section, a person is blind if he meets the provisions of § 46.2-739;
18. Motor vehicles (i) owned by persons who have been appointed to serve as auxiliary police officers pursuant to Article 3 (§ 15.2-1731 et seq.) of Chapter 17 of Title 15.2 or (ii) leased by persons who have been so appointed to serve as auxiliary police officers if the person is obligated by the terms of the lease to pay tangible personal property tax on the motor vehicle. One motor vehicle which is regularly used by each auxiliary police officer to respond to auxiliary police duties may be specially classified under this section. In order to qualify for such classification, any auxiliary police officer who applies for such classification shall identify the vehicle for which this classification is sought, and shall furnish the commissioner of revenue or other assessing officer with a certification from the governing body which has appointed such auxiliary police officer or from the official who has appointed such auxiliary officers. That certification shall state that the applicant is an auxiliary police officer who regularly uses a motor vehicle to respond to auxiliary police duties, and it shall state that the vehicle for which the classification is sought is the vehicle which is regularly used for that purpose. The certification shall be submitted by January 31 of each year to the commissioner of revenue or other assessing officer; however, the commissioner of revenue or other assessing officer shall be authorized, in his discretion, and for good cause shown and without fault on the part of the member, to accept a certification after the January 31 deadline;
19. Until the first to occur of June 30, 2009, or the date that a special improvements tax is no longer levied under § 15.2-4607 on property within a Multicounty Transportation Improvement District created pursuant to Chapter 46 (§ 15.2-4600 et seq.) of Title 15.2, tangible personal property that is used in manufacturing, testing, or operating satellites within a Multicounty Transportation Improvement District, provided that such business personal property is put into service within the District on or after July 1, 1999;
20. Motor vehicles which use clean special fuels as defined in § 46.2-749.3;
21. Wild or exotic animals kept for public exhibition in an indoor or outdoor facility which is properly licensed by the federal government, the Commonwealth, or both, and which is properly zoned for such use. "Wild animals" means any animals which are found in the wild, or in a wild state, within the boundaries of the United States, its territories or possessions. "Exotic animals" means any animals which are found in the wild, or in a wild state, and are native to a foreign country;
22. Furniture, office, and maintenance equipment, exclusive of motor vehicles, which are owned and used by an organization whose real property is assessed in accordance with § 58.1-3284.1 and which is used by that organization for the purpose of maintaining or using the open or common space within a residential development;
23. Motor vehicles, trailers and semitrailers with a gross vehicle weight of 10,000 pounds or more used to transport property for hire by a motor carrier engaged in interstate commerce;
24. All tangible personal property employed in a trade or business other than that described in subdivisions A 1 through A 18, except for subdivision A 17, of § 58.1-3503;
25. Programmable computer equipment and peripherals employed in a trade or business;
26. Privately owned pleasure boats and watercraft, motorized and under 18 feet, used for recreational purposes only;
27. Privately owned pleasure boats and watercraft, nonmotorized and under 18 feet, used for recreational purposes only;
28. Privately owned motor homes as defined in § 46.2-100 that are used for recreational purposes only;
29. Tangible personal property used in the provision of Internet services. For purposes of this subdivision, "Internet service" means a service, including an Internet Web-hosting service, that enables users to access content, information, electronic mail, and the Internet as part of a package of services sold to customers;
30. Motor vehicles (i) owned by persons who serve as auxiliary, reserve or special deputy sheriffs or (ii) leased by persons who serve as auxiliary, reserve or special deputy sheriffs if the person is obligated by the terms of the lease to pay tangible personal property tax on the motor vehicle. For purposes of this subdivision, the term "auxiliary deputy sheriff" means auxiliary, reserve or special deputy sheriff. One motor vehicle that is regularly used by each auxiliary deputy sheriff to respond to auxiliary deputy sheriff duties may be specially classified under this section. In order to qualify for such classification, any auxiliary deputy sheriff who applies for such classification shall identify the vehicle for which this classification is sought, and shall furnish the commissioner of revenue or other assessing officer with a certification from the governing body that has appointed such auxiliary deputy sheriff or from the official who has appointed such auxiliary deputy sheriff. That certification shall state that the applicant is an auxiliary deputy sheriff who regularly uses a motor vehicle to respond to such auxiliary duties, and it shall state that the vehicle for which the classification is sought is the vehicle that is regularly used for that purpose. The certification shall be submitted by January 31 of each year to the commissioner of revenue or other assessing officer; however, the commissioner of revenue or other assessing officer shall be authorized, in his discretion, and for good cause shown and without fault on the part of the member, to accept a certification after the January 31 deadline;
31. Forest harvesting and silvicultural activity equipment; and
32. Equipment used primarily for research, development, production, or provision of biotechnology for the purpose of developing or providing products or processes for specific commercial or public purposes, including, but not limited to, medical, pharmaceutical, nutritional, and other health-related purposes; agricultural purposes; or environmental purposes but not for human cloning purposes as defined in § 32.1-162.21 or for products or purposes related to human embryo stem cells. For purposes of this section, biotechnology equipment means equipment directly used in activities associated with the science of living things.
B. The governing body of any county, city or town may levy a tax on the property enumerated in subsection A at different rates from the tax levied on other tangible personal property. The rates of tax and the rates of assessment shall (i) for purposes of subdivisions 1, 2, 3, 4, 6, 9 through 18, 20 through 22, and 24 through 32 of subsection A, not exceed that applicable to the general class of tangible personal property, (ii) for purposes of subdivisions A 5, A 7, A 19, and A 23, not exceed that applicable to machinery and tools, and (iii) for purposes of subdivision A 8, equal that applicable to real property.
C. (Effective January 1, 2006) Notwithstanding any
other provision of this section, for any qualifying vehicle, as such term is
defined in § 58.1-3523, (i) included in any separate class of property in
subsection A and (ii) assessed for tangible personal property taxes by a
county, city, or town receiving a payment from the Commonwealth under Chapter
35.1 of this title for providing tangible personal property tax relief, the
county, city, or town may levy the tangible personal property tax on such
qualifying vehicle at a rate not to exceed the rates of tax and rates of
assessment required under such chapterNotwithstanding any
other provision of this section, any county, city, town may levy the tangible
personal property tax on all motor vehicles at a rate not to exceed $0.01 per
$100 of assessed value.
§ 58.1-3506.1. (Effective January 1, 2006) Other classification for taxation of certain tangible personal property owned by certain elderly and handicapped persons.
The governing body of any county, city or town may, by
ordinance, levy a tax on one motor vehicle owned and used primarily by or for
anyone at least 65 years of age or anyone found to be permanently and totally
disabled, as defined in § 58.1-3506.3, at a different rate from the tax levied
on other tangible personal property, upon such conditions as the ordinance may
prescribe. Such rate shall not exceed the tangible personal property tax on the
general class of tangible personal property. For purposes of this article, the
term motor vehicle shall include only automobiles and pickup trucks. Any such
motor vehicle owned by a husband and wife may qualify if either spouse is 65 or
over or if either spouse is permanently and totally disabled. Notwithstanding
any other provision of this section or article, for any automobile or pickup
truck that is (i) a qualifying vehicle, as such term is defined in § 58.1-3523,
and (ii) assessed for tangible personal property taxes by a county, city, or
town receiving a payment from the Commonwealth under Chapter 35.1 of this title
for providing tangible personal property tax relief, the rate of tax levied
pursuant to this article shall not exceed the rates of tax and rates of
assessment required under such chapter.
§ 58.1-3510.1. Daily rental property tax.
A. The governing body of any county, city or town may levy a tax in an amount not to exceed one percent, in addition to the tax levied pursuant to § 58.1-605, on the gross proceeds of any person engaged in the short-term rental business as defined in § 58.1-3510. "Gross proceeds" means the total amount charged to each person for the rental of daily rental property, excluding any state and local sales tax paid under the provisions of Chapter 6 (§ 58.1-600 et seq.) of this title.
B. Any person engaged in the short-term rental business as defined in § 58.1-3510 shall collect the rental tax from the lessee of the daily rental property at the time of the rental. The lessor of the daily rental property shall transmit a quarterly return to the commissioner of the revenue of the county, city or town wherein the tax is collected, indicating the gross proceeds derived from the short-term rental business. The commissioner of the revenue shall assess the tax due, and the treasurer or director of finance shall collect the daily rental property tax.
C. Notwithstanding the provisions of subsection B, no tax
shall be collected or assessed on (i) rentals by the Commonwealth, any political
subdivision of the Commonwealth or the United States or (ii) any rental of
durable medical equipment as defined in subdivision 10 of § 58.1-609.10. For
purposes of this subsection "durable medical equipment" means
equipment that (i) can withstand repeated use, (ii) is primarily and
customarily used to serve a medical purpose, (iii) generally is not useful to a
person in the absence of illness or injury, and (iv) is appropriate for use in
the home.
§ 58.1-3510.3. Exemptions; penalties.
Provisions in §§ 58.1-609.1 through 58.1-609.11
of Chapter 6 and 58.1-609.10 relating to
exemptions, §§ 58.1-635 and 58.1-636 relating to penalties, and § 58.1-625
relating to the manner of collecting the local retail sales and use tax
applicable in Chapter 6 (§ 58.1-600 et seq.) of this title, shall apply mutatis
mutandis to the daily rental property tax, except that the commissioner of
revenue shall assess the tax due, and the treasurer or director of finance
shall collect the daily rental property tax, instead of the Department of
Taxation. Any other provision in Chapter 6 shall apply if adopted by local
ordinance pursuant to § 58.1-3510.1.
§ 58.1-3818. Admissions tax in certain counties.
A. Fairfax, Arlington, Dinwiddie, Prince George and Brunswick Counties are hereby authorized to levy a tax on admissions charged for attendance at any event. The tax shall not exceed 10 percent of the amount of charge for admission to any such event. Notwithstanding any other provisions of law, the governing bodies of such counties shall prescribe by ordinance the terms, conditions and amount of such tax and may classify between events conducted for charitable and those conducted for noncharitable purposes.
B. Notwithstanding the provisions of subsection A, any county with a population of at least 27,500 but not more than 28,250 and any county with a population of at least 10,400 but not more than 10,490 as determined by the 1990 United States Census are hereby authorized to levy a tax on admissions charged for attendance at any event as set forth in subsection A.
C. Notwithstanding the provisions of subsection A, any county with a population of at least 12,450 but not more than 12,850 is hereby authorized to levy a tax on admissions charged for attendance at any spectator event; however, a tax shall not be levied on admissions charged to participants in order to participate in any event. The tax shall not exceed 10 percent of the amount of charge for admission to any event. Notwithstanding any other provisions of law, the governing body of such county shall prescribe by ordinance the terms, conditions and amount of such tax and may classify between the events as set forth in § 58.1-3817.
D. Notwithstanding the provisions of subsections A, B and C,
localities may, by ordinance, elect not to levy an admissions tax on admission
to an event, provided that the purpose of the event is solely to raise money
for charitable purposes and that the net proceeds derived from the event
will be transferred to an entity or entities that are exempt from sales and use
tax pursuant to § 58.1-609.11.
§ 58.1-3912. (Effective until January 1, 2006) Treasurers to mail certain bills to taxpayers; penalties; electronic transmission.
A. The treasurer of every city and county shall, as soon as
reasonably possible in each year, but not later than fourteen14
days prior to the due date of the taxes, send or cause to be sent by United
States mail to each taxpayer assessed with taxes and levies for that year a
bill or bills setting forth the amounts due. The treasurer may elect not to
send a bill amounting to twenty dollars$20 or
less as shown by an assessment book in such treasurer's office. The treasurer
may employ the services of a mailing service or other vendor for fulfilling the
requirements of this section. The failure of any such treasurer to comply with
this section shall be a Class 4 misdemeanor. Such treasurer shall be deemed in
compliance with this section as to any taxes due on real estate if, upon
certification by the obligee of any note or other evidence of debt secured by a
mortgage or deed of trust on such real estate that an agreement has been made
with the obligor in writing within the mortgage or deed of trust instrument
that such arrangements be made, he mails the bill for such taxes to the obligee
thereof. Upon nonpayment of taxes by either the obligee or obligor, a past-due
tax bill will be sent to the taxpayer. No governing body shall publish the name
of a taxpayer in connection with a tax debt for which a bill was not sent,
without first sending a notice of deficiency to his last known address at least
two weeks before such publication.
B. The governing body of any county, city or town may attach to or mail with all real estate and tangible personal property tax bills, prepared for taxpayers in such locality, information indicating how the tax rate charged upon such property and revenue derived therefrom is apportioned among the various services and governmental functions provided by the locality.
C. Notwithstanding the provisions of subsection A of this
section, in any county which has adopted the urban county executive form of
government, and in any county contiguous thereto which has adopted the county
executive form of government, tangible personal property tax bills shall be
mailed not later than thirty30 days
prior to the due date of such taxes.
D. Notwithstanding the provisions of subsection A of this
section, any county and town, the governing bodies of which mutually agree,
shall be allowed to send, to each taxpayer assessed with taxes, by United
States mail no later than fourteen14 days
prior to the due date of the taxes, a single real property tax bill and a
single tangible personal property tax bill.
E. Beginning with tax year 1999, in addition to all
other information currently appearing on tangible personal property tax bills,
each such bill required to be sent pursuant to subsection A shall state on its
face (i) whether the vehicle is a qualifying vehicle as defined in § 58.1-3523;
(ii) a deduction for the amount to be paid by the Commonwealth as determined by
§ 58.1-3524; (iii) the vehicle's registration number pursuant to § 46.2-604;
(iv) the amount of tangible personal property tax levied on the vehicle; and
(v) if the locality prorates personal property tax pursuant to § 58.1-3516, the
number of months for which a bill is being sent.
FE.
Beginning with tax year 1999 and through the end of tax year 2002, the
treasurer shall include a statement, prepared by the Department, with or as
part of the tangible personal property tax bills for such qualifying vehicles.
The statement shall explain how the deduction for the percentage of the
reimbursable amount was calculated, how the deduction shall be calculated in
future years, and the taxpayer's liability for tangible personal property taxes
on qualifying vehicles.
GF.
Notwithstanding the provisions of subsection A, the treasurer, consistent with
guidelines promulgated by the Department of Taxation implementing the
provisions of subdivision 2 of § 58.1-1820, may convey, with the written
consent of the taxpayer, any tax bill by electronic means chosen by the
taxpayer, including without limitation facsimile transmission or electronic
mail (e-mail), in lieu of posting such bill by first-class mail. The treasurer
conveying a bill by means authorized in this subsection shall maintain a copy
(in written form or electronic media) of the bill reflecting the date of
transmission until such time as the bill has been satisfied or otherwise
removed from the treasurer's books by operation of law. Transmission of a bill
pursuant to this subsection shall have the same force and effect for all
purposes arising under this subtitle as mailing to the taxpayer by first-class
mail on the date of transmission.
§ 58.1-3912. (Effective January 1, 2006) Treasurers to mail certain bills to taxpayers; penalties; electronic transmission.
A. The treasurer of every city and county shall, as soon as reasonably possible in each year, but not later than 14 days prior to the due date of the taxes, send or cause to be sent by United States mail to each taxpayer assessed with taxes and levies for that year a bill or bills setting forth the amounts due. The treasurer may elect not to send a bill amounting to $20 or less as shown by an assessment book in such treasurer's office. The treasurer may employ the services of a mailing service or other vendor for fulfilling the requirements of this section. The failure of any such treasurer to comply with this section shall be a Class 4 misdemeanor. Such treasurer shall be deemed in compliance with this section as to any taxes due on real estate if, upon certification by the obligee of any note or other evidence of debt secured by a mortgage or deed of trust on such real estate that an agreement has been made with the obligor in writing within the mortgage or deed of trust instrument that such arrangements be made, he mails the bill for such taxes to the obligee thereof. Upon nonpayment of taxes by either the obligee or obligor, a past-due tax bill will be sent to the taxpayer. No governing body shall publish the name of a taxpayer in connection with a tax debt for which a bill was not sent, without first sending a notice of deficiency to his last known address at least two weeks before such publication.
B. The governing body of any county, city or town may attach to or mail with all real estate and tangible personal property tax bills, prepared for taxpayers in such locality, information indicating how the tax rate charged upon such property and revenue derived therefrom is apportioned among the various services and governmental functions provided by the locality.
C. Notwithstanding the provisions of subsection A of this section, in any county which has adopted the urban county executive form of government, and in any county contiguous thereto which has adopted the county executive form of government, tangible personal property tax bills shall be mailed not later than 30 days prior to the due date of such taxes.
D. Notwithstanding the provisions of subsection A of this section, any county and town, the governing bodies of which mutually agree, shall be allowed to send, to each taxpayer assessed with taxes, by United States mail no later than 14 days prior to the due date of the taxes, a single real property tax bill and a single tangible personal property tax bill.
E. Beginning with tax year 2006, in addition to all
other information currently appearing on tangible personal property tax bills,
each such bill required to be sent pursuant to subsection A shall state on its
face (i) whether the vehicle is a qualifying vehicle as defined in § 58.1-3523;
(ii) a statement indicating the reduced tangible personal property tax rates
applied to qualifying vehicles resulting from the Commonwealth's reimbursements
for tangible personal property tax relief pursuant to § 58.1-3524, and the
locality's tangible personal property tax rate for its general class of
tangible personal property, provided that such statement shall not be required
for tax bills in any county, city, or town that will not receive any reimbursement
pursuant to subsection B of § 58.1-3524; (iii) the vehicle's registration
number pursuant to § 46.2-604; (iv) the amount of tangible personal property
tax levied on the vehicle; and (v) if the locality prorates personal property
tax pursuant to § 58.1-3516, the number of months for which a bill is being
sent.
FE.
Notwithstanding the provisions of subsection A, the treasurer, consistent with
guidelines promulgated by the Department of Taxation implementing the
provisions of subdivision 2 of § 58.1-1820, may convey, with the written
consent of the taxpayer, any tax bill by electronic means chosen by the
taxpayer, including without limitation facsimile transmission or electronic
mail (e-mail), in lieu of posting such bill by first-class mail. The treasurer
conveying a bill by means authorized in this subsection shall maintain a copy
(in written form or electronic media) of the bill reflecting the date of
transmission until such time as the bill has been satisfied or otherwise
removed from the treasurer's books by operation of law. Transmission of a bill
pursuant to this subsection shall have the same force and effect for all
purposes arising under this subtitle as mailing to the taxpayer by first-class
mail on the date of transmission.
§ 59.1-280. Enterprise zone business tax credit.
A. As used in this section:
"Business tax credit" means a credit against any tax
due under Articles 2 (§ 58.1-320 et seq.) and Article
10 (§ 58.1-400 et seq.) of Chapter 3, Chapter 12 (§ 58.1-1200 et
seq.), Article 1 (§ 58.1-2500 et seq.) of Chapter 25, or Article 2 (§ 58.1-2620
et seq.) of Chapter 26 of Title 58.1 due from a business firm.
"High investment/limited job creation qualified business firm" means a qualified business firm making qualified zone investments of $50 million or more when such qualified zone investments result in the creation of fewer than 50 permanent full-time positions. "Qualified zone investment" and "permanent full-time position" shall have the meanings provided in subsection A of § 59.1-280.1.
"Large qualified business firm" means a qualified business firm making qualified zone investments in excess of $15 million when such qualified zone investments result in the creation of at least 50 permanent full-time positions. "Qualified zone investment" and "permanent full-time position" shall have the meanings provided in subsection A of § 59.1-280.1.
"Small qualified business firm" means any qualified business firm other than a large qualified business firm or a high investment/limited job creation qualified business firm.
B. The Department shall certify annually to the Commissioner of the Department of Taxation, or in the case of (i) business firms subject to tax under Article 1 (§ 58.1-2500 et seq.) of Chapter 25 of Title 58.1 to the Commissioner of Insurance for the State Corporation Commission, or (ii) business firms subject to tax under Article 2 (§ 58.1-2620 et seq.) of Chapter 26 of Title 58.1 to the Director of Public Service Taxation for the State Corporation Commission, the applicability of the business tax credit provided herein for a qualified business firm. Any certification by the Department pursuant to this section shall not impair the authority of the Department of Taxation or State Corporation Commission to deny in whole or in part any claimed tax credit if the Department of Taxation or State Corporation Commission determines that the qualified business firm is not entitled to such tax credit. The Department of Taxation or State Corporation Commission shall notify the Department in writing upon determining that a business firm is ineligible for such tax credit.
C. Small qualified business firms shall be allowed a business tax credit in an amount equal to 80 percent of the tax due to the Commonwealth for the first tax year and 60 percent of the tax due the Commonwealth for the second tax year through the tenth tax year. Except as provided in subdivision B 1 of § 59.1-280.2, the total amount of (i) business tax credits granted to small qualified business firms under this subsection and (ii) real property investment tax credits granted to small qualified zone residents under subsection C of § 59.1-280.1, for each fiscal year, shall not exceed $16 million.
D. Large qualified business firms shall be allowed a business tax credit in a percentage amount determined by agreement between the Department and the large qualified business firm, provided such percentage amounts shall not exceed the percentages provided for small qualified business firms as set forth in subsection C. Except as provided in subdivision B 2 of § 59.1-280.2, the total amount of (i) business tax credits granted to large qualified business firms under this subsection, (ii) business tax credits granted to high investment/limited job creation qualified business firms subject to the provisions of subsection E of this section, and (iii) real property investment tax credits granted to large qualified zone residents under subsection D of § 59.1-280.1, for each fiscal year, shall not exceed $3 million.
E. High investment/limited job creation qualified business firms shall be allowed a business tax credit in an amount determined by agreement between the Department and the high investment/limited job creation qualified business firm, provided that (i) the amounts shall not exceed the percentages provided for small qualified business firms as set forth in subsection C and (ii) it can be demonstrated that the amount of the business tax credits shall not exceed the amount that will be recovered by the Commonwealth through the revenues generated from new state income taxes resulting from the new permanent full-time positions within a five-year period. The demonstration required by clause (ii) shall be based on an analysis conducted by the Department or its designee using information provided by the high investment/limited job creation qualified business firm.
F. Any business tax credit not usable may not be applied to future tax years. However, tax credits granted under this section to business firms designated as qualified business firms prior to July 1, 1995, shall not be subject to inclusion in the $16 million limitation set forth in subsection C or the three-million-dollar limitation set forth in subsection D.
G. When a partnership or a small business corporation making an election pursuant to Subchapter S of the Internal Revenue Code is eligible for a tax credit under this section, each partner or shareholder shall be eligible for the tax credit provided for in this section on his individual income tax in proportion to the amount of income received by that partner from the partnership, or shareholder from his corporation, respectively.
H. Tax credits provided for in this section shall only apply to taxable income of a qualified business firm attributable to the conduct of business within the enterprise zone. Any qualified business firm having taxable income from business activity both within and without the enterprise zone shall allocate and apportion its Virginia taxable income attributable to the conduct of business as follows:
1. The portion of a qualified business firm's Virginia taxable income allocated and apportioned to business activities within an enterprise zone shall be determined by multiplying its Virginia taxable income by a fraction, the numerator of which is the sum of the property factor and the payroll factor, and the denominator of which is two.
a. The property factor is a fraction. The numerator is the average value of real and tangible personal property of the business firm which is used in the enterprise zone. The denominator is the average value of real and tangible personal property of the business firm used everywhere in the Commonwealth.
b. The payroll factor is a fraction. The numerator is the total amount paid or accrued within the enterprise zone during the taxable period by the business firm for compensation. The denominator is the total compensation paid or accrued everywhere in the Commonwealth during the taxable period by the business firm for compensation.
2. The property factor and the payroll factor shall be determined in accordance with the procedures established in §§ 58.1-409 through 58.1-413 for determining the Virginia taxable income of a corporation having income from business activities which is taxable both within and without the Commonwealth, mutatis mutandis.
3. If a qualified business firm believes that the method of allocation and apportionment hereinbefore prescribed as administered has operated or will operate to allocate or apportion to an enterprise zone a lesser portion of its Virginia taxable income than is reasonably attributable to business conducted within the enterprise zone, it shall be entitled to file with the Department of Taxation a statement of its objections and of such alternative method of allocation or apportionment as it believes to be appropriate under the circumstances with such detail and proof and within such time as the Department of Taxation may reasonably prescribe. If the Department of Taxation concludes that the method of allocation or apportionment employed is in fact inequitable or inapplicable, it shall redetermine the taxable income by such other method of allocation or apportionment as best seems calculated to assign to an enterprise zone the portion of the qualified business firm's Virginia taxable income reasonably attributable to business conducted within the enterprise zone.
§ 63.2-2003. Tax credit; amount; limitation; carry over.
A. The Commissioner shall certify to the Department of Taxation, or in the case of business firms subject to a tax under Article 1 (§ 58.1-2500 et seq.) of Chapter 25 or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 of Title 58.1, to the State Corporation Commission, the applicability of the tax credit provided herein for a business firm.
B. A business firm shall be eligible for a credit against the
taxes imposed by Articles 2 (§ 58.1-320 et seq.) and Article
10 (§ 58.1-400 et seq.) of Chapter 3, Chapter 12 (§ 58.1-1200 et
seq.), Article 1 (§ 58.1-2500 et seq.) of Chapter 25, or Article 2 (§ 58.1-2620
et seq.) of Chapter 26 of Title 58.1, in an amount equal to forty-five 45 percent of the value of the money, property, professional
services, and contracting services donated by the business firm during its
taxable year to neighborhood organizations for programs approved pursuant to §
63.2-2002. No tax credit of less than $400 shall be granted for any donation,
and a business firm shall not be allowed a tax credit in excess of $175,000 per
taxable year. No tax credit shall be granted to any business firm for donations
to a neighborhood organization providing job training or education for
individuals employed by the business firm. Any tax credit not usable for the
taxable year the donation was made may be carried over to the extent usable for
the next five succeeding taxable years or until the full credit has been
utilized, whichever is sooner. Credits granted to a partnership, electing small
business (Subchapter S) corporation, or limited liability company shall be
allocated to their individual partners, shareholders, or members, respectively,
in proportion to their ownership or interest in such business entities.
C. A tax credit shall be issued by the Commissioner to a business firm upon receipt of a certification made by a neighborhood organization to whom tax credits were allocated for an approved program pursuant to § 63.2-2002. The certification shall identify the type and value of the donation received and the business firm making the donation. A business firm shall be eligible for a tax credit under this section only to the extent that sufficient tax credits allocated to the neighborhood organization for an approved project are available.
2. That §§ 58.1-322, 58.1-331, 58.1-334, 58.1-337, 58.1-338, 58.1-339, and 58.1-339.2 through 58.1-339.10, are repealed for taxable years beginning on and after January 1, 2006.
3. That §§ 58.1-315, 58.1-608.1, 58.1-609.2, 58.1-609.3, 58.1-609.5, 58.1-609.6, 58.1-609.11, 58.1-609.13, and 58.1-611.1 of the Code of Virginia are repealed.
4. That §§ 15.2-1636.20, Chapter 35.1 (§§ 58.1-3523 through 58.1-3536) of Title 58.1, Chapter 37 (§§ 58.1-3700 through 58.1-3735) of Title 58.1, and § 58.1-3916.01 are repealed effective January 1, 2006.
5. That the provisions of this act amending § 58.1-901 shall apply to estates of persons who die after June 30, 2005.