SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2011 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-608.3 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-608.3. Entitlement to certain sales tax revenues.
A. As used in this section, the following words and terms have the following meanings, unless some other meaning is plainly intended:
"Bonds" means any obligations of a municipality for the payment of money.
"Cost," as applied to any public facility or to extensions or additions to any public facility, includes: (i) the purchase price of any public facility acquired by the municipality or the cost of acquiring all of the capital stock of the corporation owning the public facility and the amount to be paid to discharge any obligations in order to vest title to the public facility or any part of it in the municipality; (ii) expenses incident to determining the feasibility or practicability of the public facility; (iii) the cost of plans and specifications, surveys and estimates of costs and of revenues; (iv) the cost of all land, property, rights, easements and franchises acquired; (v) the cost of improvements, property or equipment; (vi) the cost of engineering, legal and other professional services; (vii) the cost of construction or reconstruction; (viii) the cost of all labor, materials, machinery and equipment; (ix) financing charges; (x) interest before and during construction and for up to one year after completion of construction; (xi) start-up costs and operating capital; (xii) payments by a municipality of its share of the cost of any multijurisdictional public facility; (xiii) administrative expense; (xiv) any amounts to be deposited to reserve or replacement funds; and (xv) other expenses as may be necessary or incident to the financing of the public facility. Any obligation or expense incurred by the public facility in connection with any of the foregoing items of cost may be regarded as a part of the cost.
"Municipality" means any county, city, town, authority, commission, or other public entity.
"Public facility" means (i) any auditorium,
coliseum, convention center, sports facility that is designed for use primarily
as a baseball stadium for a minor league professional baseball affiliated team
or structures attached thereto, or conference center, which is owned by a
Virginia county, city, town, authority, or other public entity and where
exhibits, meetings, conferences, conventions, seminars, or similar public events
may be conducted; (ii) any hotel which is owned by a foundation whose sole
purpose is to benefit a state-supported university and which is attached to and
is an integral part of such facility, together with any lands reasonably
necessary for the conduct of the operation of such events; or (iii) any
hotel which is attached to and is an integral part of such facility; or (iv)
any hotel that is adjacent to a convention center owned by a public entity and where
the hotel owner enters into a public-private partnership whereby the locality
contributes infrastructure, real property, or conference space. However,
such public facility must be located in the City of Hampton, City of Newport
News, City of Norfolk, City of Portsmouth, City of Richmond, City of Roanoke,
City of Salem, City of Staunton, City of Suffolk, or City of Virginia Beach.
Any property, real, personal, or mixed, which is necessary or desirable in
connection with any such auditorium, coliseum, convention center, baseball
stadium or conference center, including, without limitation, facilities for
food preparation and serving, parking facilities, and administration offices,
is encompassed within this definition. However, structures commonly referred to
as "shopping centers" or "malls" shall not constitute a
public facility hereunder. A public facility shall not include residential
condominiums, townhomes, or other residential units. In addition, only a new
public facility, or a public facility which will undergo a substantial and
significant renovation or expansion, shall be eligible under subsection B of
this section. A new public facility is one whose construction began after
December 31, 1991. A substantial and significant renovation entails a project
whose cost is at least 50 percent of the original cost of the facility being
renovated and shall have begun after December 31, 1991. A substantial and
significant expansion entails an increase in floor space of at least 50 percent
over that existing in the preexisting facility and shall have begun after
December 31, 1991; or an increase in floor space of at least 10 percent over
that existing in a public facility that qualified as such under this section
and was constructed after December 31, 1991.
"Sales tax revenues" means such tax collections realized under the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.) of this title, as limited herein. "Sales tax revenues" does not include the revenue generated by the one-half percent sales and use tax increase enacted by the 1986 Special Session of the General Assembly which shall be paid to the Transportation Trust Fund as defined in § 33.1-23.03:1, nor shall it include the one percent of the state sales and use tax revenue distributed among the counties and cities of the Commonwealth pursuant to subsection D of § 58.1-638 on the basis of school age population. For a public facility that is a sports facility, "sales tax revenues" shall include such revenues generated by transactions taking place upon the premises of a baseball stadium or structures attached thereto.
B. Any municipality which has issued bonds (i) after December
31, 1991, but before January 1, 1996, (ii) on or after January 1, 1998, but
before July 1, 1999, (iii) on or after January 1, 1999, but before July 1,
2001, (iv) on or after July 1, 2000, but before July 1, 2003, (v) on or after
July 1, 2001, but before July 1, 2005, (vi) on or after July 1, 2004, but
before July 1, 2007, or (vii) on or after July 1, 2009, but before July
1, 2012, or (viii) on or after January 1, 2011, but prior to July 1, 2015, to
pay the cost, or portion thereof, of any public facility shall be entitled to
all sales tax revenues generated by transactions taking place in such public
facility. Such entitlement shall continue for the lifetime of such bonds, which
entitlement shall not exceed 35 years, and all such sales tax revenues shall be
applied to repayment of the bonds. The State Comptroller shall remit such sales
tax revenues to the municipality on a quarterly basis, subject to such
reasonable processing delays as may be required by the Department of Taxation
to calculate the actual net sales tax revenues derived from the public
facility. The State Comptroller shall make such remittances to eligible
municipalities, as provided herein, notwithstanding any provisions to the
contrary in the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.). No
such remittances shall be made until construction is completed and, in the case
of a renovation or expansion, until the governing body of the municipality has
certified that the renovation or expansion is completed.
C. Nothing in this section shall be construed as authorizing the pledging of the faith and credit of the Commonwealth of Virginia, or any of its revenues, for the payment of any bonds. Any appropriation made pursuant to this section shall be made only from sales tax revenues derived from the public facility for which bonds may have been issued to pay the cost, in whole or in part, of such public facility.