Bill Text: VA HB696 | 2022 | Regular Session | Prefiled
Bill Title: Retail Sales and Use Tax; exemption for essential personal hygiene products.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-02 - Tabled in Finance (16-Y 5-N) [HB696 Detail]
Download: Virginia-2022-HB696-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §§58.1-603.1, as it is currently effective and as it may become effective, 58.1-603.2, 58.1-604.01, as it is currently effective and as it may become effective, 58.1-605.1, 58.1-606.1, 58.1-609.10, and 58.1-611.1 of the Code of Virginia are amended and reenacted as follows:
§58.1-603.1. (For contingent expiration dates, see Acts 2013, c. 766, and Acts 2020, c. 1235) Additional state sales tax in certain counties and cities.
A. In addition to the sales tax imposed pursuant to § 58.1-603, there is hereby levied and imposed in each county and city located in a Planning District established pursuant to Chapter 42 (§15.2-4200 et seq.) of Title 15.2 that (i) as of January 1, 2013, has a population of 1.5 million or more as shown by the most recent United States Census, has not less than 1.2 million motor vehicles registered therein, and has a total transit ridership of not less than 15 million riders per year across all transit systems within the Planning District or (ii) as shown by the most recent United States Census meets the population criteria set forth in clause (i) and also meets the vehicle registration and ridership criteria set forth in clause (i), a retail sales tax at the rate of 0.70 percent. In any case in which the tax is imposed pursuant to clause (ii) such tax shall be effective beginning on the July 1 immediately following the calendar year in which all of the criteria have been met.
B. In addition to the sales tax imposed pursuant to § 58.1-603, there is hereby levied and imposed in each county and city located in Planning District 15 established pursuant to Chapter 42 (§15.2-4200 et seq.) of Title 15.2 a retail sales tax at the rate of 0.70 percent. In no case shall an additional sales tax be imposed pursuant to both clause (ii) of subsection A and this subsection.
C. The tax imposed pursuant to subsections A and B shall not
be levied upon food purchased for human consumption
and essential personal hygiene products,
as such terms are defined in §
58.1-611.1. Such tax shall be added to the rate of the state sales tax imposed
pursuant to §58.1-603 in each such county and city and shall be subject to all
the provisions of this chapter and the rules and regulations published with
respect thereto. No discount under §58.1-622 shall be allowed for the tax
imposed under this section. Such tax shall be administered and collected by the
Tax Commissioner in the same manner and subject to the same penalties as
provided for the state sales tax under §58.1-603.
D. The revenue generated and collected pursuant to the tax authorized under this section, less the applicable portion of any refunds to taxpayers, shall be deposited by the Comptroller into special funds established by law. In the case of Planning District 8, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2509. In the case of Planning District 23, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2600. In the case of Planning District 15, the revenue generated and collected therein shall be deposited into the fund established in §33.2-3701. For additional planning districts that may become subject to this section, funds shall be established by appropriate legislation.
§58.1-603.1. (For contingent effective date, see Acts 2020, c. 1235; for contingent expiration date, see Acts 2013, c. 766) Additional state sales tax in certain counties and cities.
In addition to the sales tax imposed pursuant to §58.1-603,
there is hereby levied and imposed in each county and city located in a
Planning District established pursuant to Chapter 42 (§15.2-4200 et seq.) of
Title 15.2 that (i) as of January 1, 2013, has a population of 1.5 million or
more as shown by the most recent United States Census, has not less than 1.2
million motor vehicles registered therein, and has a total transit ridership of
not less than 15 million riders per year across all transit systems within the
Planning District or (ii) as shown by the most recent United States Census
meets the population criteria set forth in clause (i) and also meets the
vehicle registration and ridership criteria set forth in clause (i), a retail
sales tax at the rate of 0.70 percent. In any case in which the tax is imposed
pursuant to clause (ii) such tax shall be effective beginning on the July 1
immediately following the calendar year in which all of the criteria have been
met. Such tax shall not be levied upon food purchased for human consumption and essential personal hygiene products,
as such terms are defined in §
58.1-611.1. Such tax shall be added to the rate of the state sales tax imposed
pursuant to §58.1-603 in each such county and city and shall be subject to all
the provisions of this chapter and the rules and regulations published with
respect thereto. No discount under §58.1-622 shall be allowed for the tax
imposed under this section. Such tax shall be administered and collected by the
Tax Commissioner in the same manner and subject to the same penalties as
provided for the state sales tax under §58.1-603.
The revenue generated and collected pursuant to the tax authorized under this section, less the applicable portion of any refunds to taxpayers, shall be deposited by the Comptroller into special funds established by law. In the case of Planning District 8, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2509. In the case of Planning District 23, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2600. For additional Planning Districts that may become subject to this section, funds shall be established by appropriate legislation.
§58.1-603.2. (For contingent expiration date, see Acts 2018, c. 850) Additional state sales and use tax in certain counties and cities of historic significance; Historic Triangle Marketing Fund.
A. For purposes of this section, "Historic Triangle" means all of the City of Williamsburg and the Counties of James City and York.
B. In addition to the sales tax imposed pursuant to §§
58.1-603 and 58.1-603.1, there is hereby levied and imposed in the Historic
Triangle a retail sales tax at the rate of one percent. Such tax shall not be
levied upon food purchased for human consumption
and essential personal hygiene products, as such terms are
defined in §58.1-611.1. Such tax shall be added to the rate of the state sales
tax imposed pursuant to §§58.1-603 and 58.1-603.1 in each such county and city
and shall be subject to all the provisions of this chapter and the rules and
regulations published with respect thereto. No discount under §58.1-622 shall
be allowed for the tax imposed under this section. Such tax shall be
administered and collected by the Tax Commissioner in the same manner and
subject to the same penalties as provided for the state sales tax under §
58.1-603.
C. In addition to the use tax imposed pursuant to §§58.1-604
and 58.1-604.01, there is hereby levied and imposed in the Historic Triangle a
retail use tax at the rate of one percent. Such tax shall not be levied upon
food purchased for human consumption and essential
personal hygiene products, as
such terms are defined in §58.1-611.1. Such tax shall be
added to the rate of the state use tax imposed pursuant to §§58.1-604 and
58.1-604.01 in each such county and city and shall be subject to all the
provisions of this chapter and the rules and regulations published with respect
thereto. No discount under §58.1-622 shall be allowed for the tax imposed
under this section. Such tax shall be administered and collected by the Tax
Commissioner in the same manner and subject to the same penalties as provided
for the state use tax under §58.1-604.
D. The revenue generated and collected pursuant to the tax authorized under this section, less the applicable portion of any refunds to taxpayers, shall be deposited by the Comptroller as follows:
1. Fifty percent of the revenues shall be deposited into the Historic Triangle Marketing Fund created pursuant to subsection E and used for the purposes set forth therein; and
2. Fifty percent of the revenues shall be deposited into a special fund hereby created on the books of the Comptroller under the name "Collections of Historic Triangle Sales Tax" and distributed to the locality in which the sales or use tax was collected. The revenues received by a locality pursuant to this subsection shall not be used to reduce the amount of other revenues appropriated by such locality to or for use by the Greater Williamsburg Chamber and Tourism Alliance below the amount provided in fiscal year 2018.
E. 1. There is hereby created in the state treasury a special nonreverting fund to be known as the Historic Triangle Marketing Fund, referred to in this section as "the Fund," to be managed and administered by the Tourism Council of the Greater Williamsburg Chamber and Tourism Alliance. The Fund shall be established on the books of the Comptroller. All revenues generated pursuant to this section shall be paid into the state treasury and credited to the Fund. 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 of marketing, advertising, and promoting the Historic Triangle area as an overnight tourism destination, with the intent to attract visitors from a sufficient distance so as to require an overnight stay of at least one night, as set forth in this subsection. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Secretary of Finance.
2. The Tourism Council of the Greater Williamsburg Chamber and Tourism Alliance (the Council) shall consist of members as follows: one member of the James City County Board of Supervisors, one member of the York County Board of Supervisors; one member of the Williamsburg City Council, one representative of the Colonial Williamsburg Foundation, one representative of the Jamestown-Yorktown Foundation, one representative of Busch Gardens Williamsburg, one representative of Historic Jamestowne, one representative of the Williamsburg Hotel and Motel Association, and one representative of the Williamsburg Area Restaurant Association. The Chief Executive Officer of the Virginia Tourism Alliance and the Chief Executive Officer of the Virginia Tourism Corporation shall serve as ex officio, non-voting members of the Council.
3. The Council shall establish the Historic Triangle Office of Marketing and Promotion (the Office) to administer a program of marketing, advertising, and promotion to attract visitors to the Historic Triangle area, as required by this subsection. The Council shall use moneys in the Fund to fund the pay for necessary expenses of the Office and to fund the activities of the Office. The Office shall be overseen by a professional with extensive experience in marketing or advertising and in the tourism industry. The Office shall be responsible for (i) developing and implementing, in consultation with the Council, long-term and short-term strategic plans for advertising and promoting the numerous facilities, venues, and attractions devoted to education, historic preservation, amusement, entertainment, and dining in the Historic Triangle as a cohesive and unified travel destination for local, national, and international travelers; (ii) assisting, upon request, with the coordination of cross-advertising and cross-marketing efforts between various tourism venues and destinations in the Historic Triangle region; (iii) identifying strategies for both increasing the number of overnight visitors to the region and increasing the average length of stay of tourists in the region; and (iv) performing any other function related to the promotion of the Historic Triangle region as may be identified by the Council.
4. The Council shall report annually on its long-term and short-term strategic plans and the implementation of such plans; marketing efforts; metrics regarding tourism in the Historic Triangle region; use of the funds in the Fund; and any other details relevant to the work of the Council and the Office. Such report shall be delivered no later than December 1 of each year to the managers or chief executive officers of the City of Williamsburg and the Counties of James City and York, and to the Chairmen of the House Committees on Finance and Appropriations and the Senate Committee on Finance and Appropriations.
§58.1-604.01. (For contingent expiration dates, see Acts 2013, c. 766, and Acts 2020, c. 1235) Additional state use tax in certain counties and cities.
A. In addition to the use tax imposed pursuant to §58.1-604, there is hereby levied and imposed in each county and city located in a Planning District established pursuant to Chapter 42 (§15.2-4200 et seq.) of Title 15.2 that (i) as of January 1, 2013, has a population of 1.5 million or more, as shown by the most recent United States Census, has not less than 1.2 million motor vehicles registered therein, and has a total transit ridership of not less than 15 million riders per year across all transit systems within the Planning District or (ii) as shown by the most recent United States Census meets the population criteria set forth in clause (i) and also meets the vehicle registration and ridership criteria set forth in clause (i), a retail use tax at the rate of 0.70 percent. In any case in which the tax is imposed pursuant to clause (ii) such tax shall be effective beginning on the July 1 immediately following the calendar year in which all of the criteria have been met.
B. In addition to the sales tax imposed pursuant to § 58.1-603, there is hereby levied and imposed in each county and city located in Planning District 15 established pursuant to Chapter 42 (§15.2-4200 et seq.) of Title 15.2 a retail use tax at the rate of 0.70 percent. In no case shall an additional use tax be imposed pursuant to both clause (ii) of subsection A and this subsection.
C. The tax imposed pursuant to subsections A and B shall not be
levied upon food purchased for human consumption
and essential personal hygiene products, as such terms are defined in §
58.1-611.1. Such tax shall be added to the rate of the state use tax imposed
pursuant to §58.1-604 in such county and city and shall be subject to all the
provisions of this chapter and the rules and regulations published with respect
thereto. No discount under §58.1-622 shall be allowed for the tax described
under this section. Such tax shall be administered and collected by the Tax
Commissioner in the same manner and subject to the same penalties as provided
for the state use tax under §58.1-604.
D. The revenue generated and collected pursuant to the tax authorized under this section, less the applicable portion of any refunds to taxpayers, shall be deposited by the Comptroller into special funds established by law. In the case of Planning District 8, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2509. In the case of Planning District 23, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2600. In the case of Planning District 15, the revenue generated and collected therein shall be deposited into the fund established in §33.2-3701. For any additional planning districts that may become subject to this section, funds shall be established by appropriate legislation.
§58.1-604.01. (For contingent effective date, see Acts 2020, c. 1235; for contingent expiration date, see Acts 2013, c. 766) Additional state use tax in certain counties and cities.
In addition to the use tax imposed pursuant to §58.1-604,
there is hereby levied and imposed in each county and city located in a
Planning District established pursuant to Chapter 42 (§15.2-4200 et seq.) of
Title 15.2 that (i) as of January 1, 2013, has a population of 1.5 million or
more, as shown by the most recent United States Census, has not less than 1.2
million motor vehicles registered therein, and has a total transit ridership of
not less than 15 million riders per year across all transit systems within the
Planning District or (ii) as shown by the most recent United States Census
meets the population criteria set forth in clause (i) and also meets the
vehicle registration and ridership criteria set forth in clause (i), a retail
use tax at the rate of 0.70 percent. In any case in which the tax is imposed
pursuant to clause (ii) such tax shall be effective beginning on the July 1
immediately following the calendar year in which all of the criteria have been
met. Such tax shall not be levied upon food purchased for human consumption and essential personal hygiene products,
as such terms are defined in §
58.1-611.1. Such tax shall be added to the rate of the state use tax imposed
pursuant to §58.1-604 in such county and city and shall be subject to all the
provisions of this chapter and the rules and regulations published with respect
thereto. No discount under §58.1-622 shall be allowed for the tax described
under this section. Such tax shall be administered and collected by the Tax
Commissioner in the same manner and subject to the same penalties as provided
for the state use tax under §58.1-604.
The revenue generated and collected pursuant to the tax authorized under this section, less the applicable portion of any refunds to taxpayers, shall be deposited by the Comptroller into special funds established by law. In the case of Planning District 8, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2509. In the case of Planning District 23, the revenue generated and collected therein shall be deposited into the fund established in §33.2-2600. For any additional Planning Districts that may become subject to this section, funds shall be established by appropriate legislation.
§58.1-605.1. Additional local sales tax in certain localities; use of revenues for construction or renovation of schools.
A. 1. In addition to the sales tax authorized under § 58.1-605, a qualifying locality may levy a general retail sales tax at a rate not to exceed one percent as determined by its governing body to provide revenue solely for capital projects for the construction or renovation of schools in each such locality. Such tax shall be added to the rates of the state and local sales tax imposed by this chapter and shall be subject to all the provisions of this chapter and the rules and regulations published with respect thereto. No discount under §58.1-622 shall be allowed on this local sales tax.
2. Any tax imposed pursuant to this section shall expire (i) if the capital projects for the construction or renovation of schools are to be financed by bonds or loans, on the date by which such bonds or loans shall be repaid or (ii) if the capital projects for the construction or renovation of schools are not to be financed by bonds or loans, on a date chosen by the governing body and specified in any resolution passed pursuant to the provisions of subdivision B 1. Such expiration date shall not be more than 20 years after the date of the resolution passed pursuant to the provisions of subdivision B 1.
B. 1. This tax may be levied only if the tax is approved in a referendum within the qualifying locality held in accordance with §24.2-684 and initiated by a resolution of the local governing body. Such resolution shall state (i) if the capital projects for the construction or renovation of schools are to be financed by bonds or loans, the date by which such bonds or loans shall be repaid or (ii) if the capital projects for the construction or renovation of schools are not to be financed by bonds or loans, a specified date on which the sales tax shall expire.
2. The clerk of the circuit court shall publish notice of the referendum in a newspaper of general circulation in the qualifying locality once a week for three consecutive weeks prior to the election. The question on the ballot for the referendum shall include language stating (i) that the revenues from the sales tax shall be used solely for capital projects for the construction or renovation of schools and (ii) the date on which the sales tax shall expire.
C. The governing body of the qualifying locality, if it elects to impose a local sales tax under this section after approval at a referendum as provided in subsection B shall do so by the adoption of an ordinance stating its purpose and referring to this section and providing that such ordinance shall be effective on the first day of a month at least 120 days after its adoption. Such ordinance shall state the date on which the sales tax shall expire. A certified copy of such ordinance shall be forwarded to the Tax Commissioner so that it will be received within five days after its adoption.
D. Any local sales tax levied under this section shall be
administered and collected by the Tax Commissioner in the same manner and
subject to the same exemptions and penalties as provided for the state sales
tax; however, the local sales tax levied under this section shall not be levied
on food purchased for human consumption or essential
personal hygiene products, as
such terms are defined in §58.1-611.1.
E. All local sales tax moneys collected by the Tax Commissioner under this section shall be paid into the state treasury to the credit of a special fund that is hereby created on the Comptroller's books for each qualifying locality under the name "Collections of Additional Local Sales Taxes in ____ (INSERT NAME OF THE QUALIFYING LOCALITY)." Each fund shall be administered as provided in §58.1-605. A separate fund shall be created for each qualifying locality. Only local sales tax moneys collected in that qualifying locality shall be deposited in that locality's fund.
F. As soon as practicable after the local sales tax moneys have been paid into the state treasury in any month for the preceding month, the Comptroller shall draw his warrant on the State Treasurer in the proper amount in favor of each qualifying locality, and such payments shall be charged to the account of the qualifying locality under its special fund created by this section. If errors are made in any such payment, or adjustments are otherwise necessary, whether attributable to refunds to taxpayers or to some other fact, the errors shall be corrected and adjustments made in the payments for the next two months as follows: one-half of the total adjustment shall be included in the payment for each of the next two months. In addition, the payment shall include a refund of amounts erroneously not paid to each qualifying locality and not previously refunded during the three years preceding the discovery of the error. A correction and adjustment in payments described in this subsection due to the misallocation of funds by the dealer shall be made within three years of the date of the payment error.
G. The revenues from this tax shall be used solely for capital projects for new construction or major renovation of schools in the qualifying locality, including bond and loan financing costs related to such construction or renovation.
§58.1-606.1. Additional local use tax in certain localities; use of revenues for construction or renovation of schools.
A. 1. The governing body of a qualifying locality may levy a use tax at the rate of such sales tax under §58.1-605.1 to provide revenue for capital projects for the construction or renovation of schools in such locality. Such tax shall be added to the rates of the state and local use tax imposed by this chapter and shall be subject to all the provisions of this chapter, and all amendments thereof, and the rules and regulations published with respect thereto, except that no discount under §58.1-622 shall be allowed on a local use tax.
2. Any tax imposed pursuant to this section shall expire (i) if the capital projects for the construction or renovation of schools are to be financed by bonds or loans, on the date by which such bonds or loans shall be repaid or (ii) if the capital projects for the construction or renovation of schools are not to be financed by bonds or loans, on a date chosen by the governing body and specified in any resolution passed pursuant to the provisions of subsection B. Such expiration date shall not be more than 20 years after the date of the resolution passed pursuant to the provisions of subsection B.
B. The governing body of the qualifying locality, if it elects to impose a local use tax under this section may do so only if it has previously imposed the local sales tax authorized by §58.1-605.1, by the adoption of an ordinance stating its purpose and referring to this section and providing that the local use tax shall become effective on the first day of a month at least 120 days after its adoption. Such ordinance shall state the date on which the use tax shall expire. A certified copy of such ordinance shall be forwarded to the Tax Commissioner so that it will be received within five days after its adoption.
C. Any local use tax levied under this section shall be
administered and collected by the Tax Commissioner in the same manner and
subject to the same exemptions and penalties as provided for the state use tax;
however, the local use tax levied under this section shall not be levied on
food purchased for human consumption or essential
personal hygiene products, as
such terms are defined in §58.1-611.1.
D. The local use tax authorized by this section shall not apply to transactions to which the sales tax applies, the situs of which for state and local sales tax purposes is the locality of location of each place of business of every dealer paying the tax to the Commonwealth without regard to the locality of possible use by the purchasers. However, the local use tax authorized by this section shall apply to tangible personal property purchased outside the Commonwealth for use or consumption within the locality imposing the local use tax, or stored within the locality for use or consumption, where the property would have been subject to the sales tax if it had been purchased within the Commonwealth. The local use tax shall also apply to leases or rentals of tangible personal property where the place of business of the lessor is outside the Commonwealth and such leases or rentals are subject to the state tax. Moreover, the local use tax shall apply in all cases in which the state use tax applies.
E. Out-of-state dealers who hold certificates of registration to collect the use tax from their customers for remittance to the Commonwealth shall, to the extent reasonably practicable, in filing their monthly use tax returns with the Tax Commissioner, break down their shipments into the Commonwealth by counties and cities so as to show the county or city of destination. If, however, the out-of-state dealer is unable accurately to assign any shipment to a particular county or city, the local use tax on the tangible personal property involved shall be remitted to the Commonwealth by such dealer without attempting to assign the shipment to any county or city.
F. Local use tax revenue shall be deposited in the special fund established pursuant to subsection E of §58.1-605.1. The Comptroller shall distribute the revenue to the qualifying locality.
G. All revenue from this local use tax revenue shall be used solely for capital projects for new construction or major renovation of schools in the qualifying locality, including bond and loan financing costs related to such construction or renovation.
§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.
2. An occasional sale, as defined in §58.1-602. A nonprofit organization that is eligible to be granted an exemption on its purchases pursuant to §58.1-609.11, and that is otherwise eligible for the exemption pursuant to this subdivision, shall be exempt pursuant to this subdivision on its sales of (i) food, prepared food and meals and (ii) tickets to events that include the provision of food, prepared food and meals, so long as such sales take place on fewer than 24 occasions in a calendar year.
3. Tangible personal property for future use by a person for taxable lease or rental as an established business or part of an established business, or incidental or germane to such business, including a simultaneous purchase and taxable leaseback.
4. Delivery of tangible personal property outside the Commonwealth for use or consumption outside of the Commonwealth. Delivery of goods destined for foreign export to a factor or export agent shall be deemed to be delivery of goods for use or consumption outside of the Commonwealth.
5. 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.
8. 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 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.
9. 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; medicines and drugs purchased for use or consumption by a licensed hospital, nursing home, clinic, or similar corporation not otherwise exempt under this section; 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). With the exceptions of those medicines and drugs used for agricultural production animals that are exempt to veterinarians under subdivision 1 of §58.1-609.2, 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.
10. 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.
11. Drugs and supplies used in hemodialysis and peritoneal dialysis.
12. Special equipment installed on a motor vehicle when purchased by a handicapped person to enable such person to operate the motor vehicle.
13. 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.
14. 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 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; 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; and property used in caring for or maintaining property owned by the church including, but not limited to, mowing equipment; and building materials installed by the church, and for which the church does not contract with a person or entity to have installed, in the public church buildings used in carrying out the work of the church and its related ministries, including, but not limited to worship services; administrative rooms; and kindergarten, elementary, and secondary schools.
17. 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.
18. Beginning July 1, 2007, and ending July 1, 2012, multifuel heating stoves used for heating an individual purchaser's residence. "Multifuel heating stoves" are stoves that are capable of burning a wide variety of alternative fuels, including, but not limited to, shelled corn, wood pellets, cherry pits, and olive pits.
19. Fabrication of animal meat, grains, vegetables, or other foodstuffs when the purchaser (i) supplies the foodstuffs and they are consumed by the purchaser or his family, (ii) is an organization exempt from taxation under §501(c)(3) or (c)(4) of the Internal Revenue Code, or (iii) donates the foodstuffs to an organization exempt from taxation under §501(c)(3) or (c)(4) of the Internal Revenue Code.
20. Beginning July 1, 2018, and ending July 1, 2022, parts, engines, and supplies used for maintaining, repairing, or reconditioning aircraft or any aircraft's avionics system, engine, or component parts. This exemption shall not apply to tools and other equipment not attached to or that does not become a part of the aircraft. For purposes of this subdivision, "aircraft" shall include both manned and unmanned systems.
21. A gun safe with a selling price of $1,500 or less. For purposes of this subdivision, "gun safe" means a safe or vault that is (i) commercially available, (ii) secured with a digital or dial combination locking mechanism or biometric locking mechanism, and (iii) designed for the storage of a firearm or of ammunition for use in a firearm. "Gun safe" does not include a glass-faced cabinet. Any discount, coupon, or other credit offered by the retailer or a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price for purposes of this exemption.
22. Essential personal hygiene products. For purposes of this subdivision, "essential personal hygiene products" means (i) nondurable incontinence products such as diapers, disposable undergarments, pads, and bed sheets and (ii) menstrual cups and pads, panty liners, sanitary napkins, tampons, and other products used to absorb or contain menstrual flow.
§58.1-611.1. Rate of tax on sales of food purchased for human consumption.
A. The tax imposed by §§58.1-603 and 58.1-604 on food
purchased for human consumption and essential
personal hygiene products 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
and essential personal hygiene products pursuant to §§
58.1-605 and 58.1-606.
C. 1.
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.
2. As used in this
section, "essential personal hygiene products" means (i) nondurable
incontinence products such as diapers, disposable undergarments, pads, and bed
sheets and (ii) menstrual cups and pads, pantyliners, sanitary napkins,
tampons, and other products used to absorb or contain menstrual flow.
"Essential personal hygiene products" does not include any item that
is otherwise exempt pursuant to this chapter.
