Bill Text: VA HB593 | 2014 | Regular Session | Comm Sub
Bill Title: Entitlement to certain sales and use tax revenues; City of Bristol and Washington County.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Engrossed - Dead) 2014-02-26 - Passed by indefinitely in Finance (13-Y 4-N) [HB593 Detail]
Download: Virginia-2014-HB593-Comm_Sub.html
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14104017D
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; (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 Fredericksburg, City of Hampton, City of Lynchburg, 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, City of Virginia Beach, City of Winchester, or Town of Wise. 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 C. 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.), as limited herein. "Sales tax revenues" does not include the revenue generated by (i) the 0.5 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, (ii) the 1.0 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, or (iii) any sales and use tax revenues generated by increases or allocation changes imposed by the 2013 Session of the General Assembly. 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. 1. Notwithstanding the 2. For purposes of this subsection, a "development
of regional impact" means a development project located in a city, or
city and county, as described in subdivision 1, and (i) towards which the 3. Any county that meets the criteria set forth in clauses (i), (ii), and (iii) of subdivision 1 may enter into an agreement with any adjoining city in which a development of regional impact has already been established in order to expand the development of regional impact to include certain areas in the city, county, or city and county, as designated in such agreement. However, any area or areas within the county that are added to a development of regional impact pursuant to this subdivision shall not be larger in the aggregate than 200 acres and shall be located within three miles of such development of regional impact. Upon execution of such agreement, the localities shall notify the Department of Taxation of the area or areas to be added to the original development of regional impact. Upon receipt of such notice, such additional area or areas shall be deemed to be part of the original development of regional impact as described in subdivision 2 without requiring that the additional area or areas independently satisfy the criteria in clauses (i) through (v) of subdivision 2 and without requiring any further action by the Department of Taxation. Any written reports by the Department of Taxation indicating that a locality has complied with the notification requirements of this subsection and that have been filed as provided in subdivision 2 shall be deemed conclusive evidence that the requirements for a development of regional impact have been satisfied. C. 1. 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,
(viii) on or after January 1, 2011, but prior to July 1, 2015, or (ix) on or
after January 1, 2013, but prior to July 1, 2017, 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, 2. In the case of a development of regional impact, when any municipality has issued bonds on or after January 1, 2012, but prior to December 31, 2020, to pay the cost, or a portion thereof, of any development of regional impact, the city or county in which all or any part of such development is located shall be entitled to all sales tax revenues generated by transactions taking place within any part of such development located within such city or county. Such entitlement shall continue for the lifetime of such bonds, or any refinancing or refunding thereof, but in no event shall such entitlement exceed 35 years from the initial date that any bonds were issued to pay the cost, or a portion thereof, of any development of regional impact, and all such sales tax revenues shall be applied to repayment of the bonds and other costs incurred by the municipality in connection with the development of regional impact. The State Comptroller shall remit such sales tax revenues to the eligible city or county in which such revenue was generated, as provided herein, 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 that portion of the development of regional impact located in such city or county. The State Comptroller shall make such remittances to an eligible city or county, as provided herein, notwithstanding any provisions to the contrary in the Virginia Retail Sales and Use Tax Act (§58.1-600 et seq.). The Comptroller shall make such remittances on a quarterly basis beginning with the first quarter in which any sales tax revenue is generated by transactions taking place in any part of the development of regional impact, whether or not construction of all or any portion, phase, or building of the development project within the development of regional impact has been completed. 3. The provisions of subsections B and this subsection shall not apply to existing retail establishments in a development of regional impact so long as such retail establishments remain in the locations they occupied on January 1, 2014. D. 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. |
