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2012 SESSION
12104164DBe 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 35 years after completion of construction or the lifetime of the bonds, whichever is sooner;
(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; (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;
or (v) any development of regional impact (a) that
would have a substantial effect upon the health, safety, and welfare of the
citizens of more than one government jurisdiction because of the development's
character, magnitude, and location; (b) that is
reasonably expected to draw at least one million visitors per year; (c)
that is reasonably expected to require a capital investment of at least $20
million; (d)
that is reasonably
anticipated to generate at least $2 million
in state sales and use taxes annually; and (e) for which the
locality where the development is
located contributes infrastructure or real property to the development pursuant
to a public-private partnership agreement with the owner
of the development. However, such public facility must be
located in the City of Bristol,
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, Any structures commonly referred to as "shopping
centers" or "malls" shall not constitute a public facility
hereunder unless all
requirements of clause (v) are met and the
structures are located within a city that abuts another state that has enacted
a Border Region Retail Tourism Development District Act. 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, (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.