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2004 SPECIAL SESSION I
042657524Be it enacted by the General Assembly of Virginia:
1. That §§ 29.1-101, 29.1-101.01, 58.1-603, 58.1-604, 58.1-611.1, 58.1-627, and 58.1-628 of the Code of Virginia are amended and reenacted as follows:
§ 29.1-101. Game Protection Fund.
The amount received by the State Treasurer from the sale of hunting, trapping
and fishing licenses, revenue generated from the sales and use tax pursuant to
subsection E F of § 58.1-638, and such other items as may accrue to the Board
shall be set aside and shall constitute the Game Protection Fund. The income and principal of this Fund,
including any unexpended balance, shall be a separate fund in the state
treasury and shall only be used for the payment of the salaries, allowances,
wages, and expenses incident to carrying out the provisions of the hunting,
trapping and inland fish laws and for no other purpose, except as provided in
§§ 29.1-101.01, 29.1-701, 58.1-345 and 58.1-1410.
§ 29.1-101.01. Capital Improvement Fund.
There is hereby created in the state treasury a special, nonreverting fund to
be known as the Capital Improvement Fund, hereafter referred to as "the Fund."
The Fund shall consist of those funds that may be so designated by the Board
and any gifts, grants, and contributions from any person, foundation, or other
legal entity. In addition, the Board may transfer to this Fund an amount equal
to fifty percent or less of the revenue generated annually from the sales and
use tax which has been deposited in the Game Protection Fund pursuant to
subsection E F of § 58.1-638. The income and principal in the Fund shall be
used only for the purchase, construction, maintenance, or repair of capital assets of the Department.
The Fund shall be established on the books of the Comptroller. All moneys received shall be paid into the state treasury and credited to the Fund. Interest earned on the moneys in the Fund shall remain in the Fund and be credited to the Fund. 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, except as provided in subsection E of § 58.1-638.
§ 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 tangible personal
property in this Commonwealth, or who rents or furnishes any of the things or
services taxable under this chapter, or who stores for use or consumption in
this Commonwealth any item or article of tangible personal property as defined
in this chapter, or who leases or rents such property within this Commonwealth,
in the amount of three and one-half four percent:
1. Of the gross sales price of each item or article of tangible personal property when sold at retail or distributed in this Commonwealth.
2. Of the gross proceeds derived from the lease or rental of tangible personal property, where the lease or rental of such property is an established business, or part of an established business, or the same is incidental or germane to such business.
3. Of the cost price of each item or article of tangible personal property stored in this Commonwealth for use or consumption in this Commonwealth.
4. Of the gross proceeds derived from the sale or charges for rooms, lodgings or accommodations furnished to transients as set out in the definition of "retail sale" in § 58.1-602.
5. Of the gross sales of any services whichthat are expressly stated as taxable
within this chapter.
§ 58.1-604. Imposition of use tax.
There is hereby levied and imposed, in addition to all other taxes and fees now
imposed by law, a tax upon the use or consumption of tangible personal property
in this Commonwealth, or the storage of such property outside the Commonwealth
for use or consumption in this Commonwealth, in the amount of three and
one-half four percent:
1. Of the cost price of each item or article of tangible personal property used or consumed in this Commonwealth. Tangible personal property which has been acquired for use outside this Commonwealth and subsequently becomes subject to the tax imposed hereunder shall be taxed on the basis of its cost price if such property is brought within this Commonwealth for use within six months of its acquisition; but if so brought within this Commonwealth six months or more after its acquisition, such property shall be taxed on the basis of the current market value (but not in excess of its cost price) of such property at the time of its first use within this Commonwealth. Such tax shall be based on such proportion of the cost price or current market value as the duration of time of use within this Commonwealth bears to the total useful life of such property (but it shall be presumed in all cases that such property will remain within this Commonwealth for the remainder of its useful life unless convincing evidence is provided to the contrary).
2. Of the cost price of each item or article of tangible personal property stored outside this Commonwealth for use or consumption in this Commonwealth.
3. A transaction taxed under § 58.1-603 shall not also be taxed under this section, nor shall the same transaction be taxed more than once under either section.
4. The use tax shall not apply with respect to the use of any article of tangible personal property brought into this Commonwealth by a nonresident individual, visiting in Virginia, for his personal use, while within this Commonwealth.
5. The use tax shall not apply to out-of-state mail order catalog purchases totaling $100 or less during any calendar year.
§ 58.1-611.1. Rate of tax on sales of food purchased for human consumption; Food Tax Reduction Program.
A. Subject to the conditions of subsections D and E, the tax imposed by §§ 58.1-603 and 58.1-604 on food purchased for human consumption shall be levied and distributed as follows:
1. From January 1, 2000, through March 31, 2001June 30, 2004, the tax rate on
such food shall be three percent of the gross sales price. The revenue from the tax shall be
distributed as follows: (i) the revenue from the tax at the rate of one-half percent shall be
distributed as provided in subsection A of § 58.1-638, (ii) the revenue from
the tax at the rate of one percent shall be distributed as provided in subsections
B, C and D of § 58.1-638, and (iii) the revenue from the tax at the rate of one
and one-half percent shall be used for general fund purposes.
2. From April 1, 2001, through March 31, 2002, Beginning July 1, 2004, the tax
rate on such food shall be two and one-half percent of the gross sales price. The revenue from the
tax shall be distributed as follows: (i) the revenue from the tax at the rate
of one-half percent shall be distributed as provided in subsection A of §
58.1-638, (ii) the revenue from the tax at the rate of one percent shall be
distributed as provided in subsections B, C and D of § 58.1-638, and (iii) the
revenue from the tax at the rate of one percent shall be used for general fund
purposes.
3. From April 1, 2002, through March 31, 2003, the tax rate on such food shall
be two percent of the gross sales price. The revenue from the tax shall be
distributed as follows: (i) the revenue from the tax at the rate of one-half
percent shall be distributed as provided in subsection A of § 58.1-638, (ii)
the revenue from the tax at the rate of one percent shall be distributed as provided
in subsections B, C and D of § 58.1-638, and (iii) the revenue from the tax at
the rate of one-half percent shall be used for general fund purposes.
4. On and after April 1, 2003, the tax rate on such food shall be one and
one-half percent of the gross sales price. The revenue from the tax shall be
distributed as follows: (i) the revenue from the tax at the rate of one-half
percent shall be distributed as provided in subsection A of § 58.1-638 and (ii)
the revenue from the tax at the rate of one percent shall be distributed as provided
in subsections B, C and D of § 58.1-638.
B. The provisions of this section shall not affect the imposition of tax on food purchased for human consumption pursuant to §§ 58.1-605 and 58.1-606.
C. As used in this section, "food purchased for human consumption" has the same meaning as "food" defined in the Food Stamp Act of 1977, 7 U.S.C. § 2012, as amended, and federal regulations adopted pursuant to that Act, except it shall not include seeds and plants which produce food for human consumption. For the purpose of this section, "food purchased for human consumption" shall not include food sold by any retail establishment where the gross receipts derived from the sale of food prepared by such retail establishment for immediate consumption on or off the premises of the retail establishment constitutes more than 80 percent of the total gross receipts of that retail establishment, including but not limited to motor fuel purchases, regardless of whether such prepared food is consumed on the premises of that retail establishment. For purposes of this section, "retail establishment" means each place of business for which any "dealer," as defined in § 58.1-612, is required to apply for and receive a certificate of registration pursuant to § 58.1-613.
D. Notwithstanding the tax rates set forth in subsection A, the rate of tax on
sales of food purchased for human consumption for any 12-month period beginning on
or after April 1, 2001, shall not be reduced below the rate then in effect for the
Commonwealth's current fiscal year if:
1. Actual general fund revenues for the fiscal year preceding a fiscal year in
which a rate reduction is contemplated in subsection A do not exceed the official
general fund revenue estimates for such preceding fiscal year, as estimated in
the most recently enacted and approved general appropriation act, by at least
one percent; or
2. Any of the events listed in subsection C of § 58.1-3524 or subsection B of §
58.1-3536 have occurred during the then current fiscal year.
E. If the tax rate on food purchased for human consumption remains the same for
the period January 1, 2000, through March 31, 2001, and the subsequent 12-month
period beginning on April 1, 2001, or with respect to any consecutive 12-month
periods beginning on and after April 1, 2001, the tax rate on such food shall
remain the same unless none of the conditions described in subsection D have
occurred, in which event the tax rate on food purchased for human consumption for the
immediately following 12-month period shall be equal to the next lowest tax rate listed
in subsection A.
D. The additional one-half percent increase in the taxes imposed pursuant to §§ 58.1-603 and 58.1-604 effective July 1, 2004, shall not apply to food purchased for human consumption.
§ 58.1-627. Bracket system for tax at rate of four percent.
The following Tax Commissioner shall develop brackets of prices that shall be
used for the collection of the tax imposed by this chapter : on sales of less
than five dollars.
$0.00 to $0.14 no tax
.15 to .42 1» tax
.43 to .71 2» tax
.72 to .99 3» tax
1.00 to 1.28 4» tax
1.29 to 1.57 5» tax
1.58 to 1.85 6» tax
1.86 to 2.14 7» tax
2.15 to 2.42 8» tax
2.43 to 2.71 9» tax
2.72 to 2.99 10» tax
3.00 to 3.28 11» tax
3.29 to 3.57 12» tax
3.58 to 3.85 13» tax
3.86 to 4.14 14» tax
4.15 to 4.42 15» tax
4.43 to 4.71 16» tax
4.72 to 5.00 17» tax
On transactions over five dollarsgreater than five dollars, the tax shall be
computed at three and one-half four percent, one-half cent or more being
treated as one cent. If a dealer can show to the satisfaction of the Tax
Commissioner that more than eighty-five85 percent of the total dollar
volume of his gross taxable sales during the taxable month was from individual sales at prices
of ten 10 cents or less each, and that he was unable to adjust his prices in
such manner as to prevent the economic incidence of the sales tax from falling on him, the Tax
Commissioner shall determine the proper tax liability of the dealer based on
that portion of the dealer's gross taxable sales which was from sales at prices
of eleven 11 cents or more.
§ 58.1-628. Bracket system for combined state and local tax.
The following Tax Commissioner shall prepare brackets of prices that shall be
used for the collection of the combined state and local tax : on sales less
than five dollars.
$0.00 to $0.11 no tax
.12 to .33 1» tax
.34 to .55 2» tax
.56 to .77 3» tax
.78 to .99 4» tax
1.00 to 1.22 5» tax
1.23 to 1.44 6» tax
1.45 to 1.66 7» tax
1.67 to 1.88 8» tax
1.89 to 2.11 9» tax
2.12 to 2.33 10» tax
2.34 to 2.55 11» tax
2.56 to 2.77 12» tax
2.78 to 2.99 13» tax
3.00 to 3.22 14» tax
3.23 to 3.44 15» tax
3.45 to 3.66 16» tax
3.67 to 3.88 17» tax
3.89 to 4.11 18» tax
4.12 to 4.33 19» tax
4.34 to 4.55 20» tax
4.56 to 4.77 21» tax
4.78 to 5.00 22» tax
On transactions over five dollarsgreater than five dollars, the tax shall be
computed at four and one-half five percent, one-half cent or more being treated
as one cent. The foregoing bracket system shall not relieve the dealer from the
duty and liability to remit an amount equal to four and one-half five percent
of his gross taxable sales as provided in this chapter. If the dealer, however, can show to the satisfaction of
the Tax Commissioner that more than eighty-five85 percent of the total dollar
volume of his gross taxable sales during the taxable month was from individual sales
at prices of ten 10 cents or less each and that he was unable to adjust
his prices in such manner as to prevent the economic incidence of the sales tax from falling on
him, the Tax Commissioner shall determine the proper tax liability of the
dealer based on that portion of the dealer's gross taxable sales which was from
sales at prices of eleven 11 cents or more.