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Sales and Use Tax Expenditure Study

Pursuant to Va. Code § 58.1-609.12, the Department of Taxation (“TAX”) was formerly charged with the responsibility of determining the fiscal, economic and policy impact of each of the Retail Sales and Use Tax Miscellaneous Exemptions provided for by Va. Code § 58.1-609.10 and the Retail Sales and Use Tax Exemptions for Nonprofit Entities provided by Va. Code § 58.1-609.11 and reporting such findings to the chairmen of the House and Senate Finance Committees no later than December 1 of each year.

Subgroups of these exemptions were reviewed annually and reports issued in accordance with a schedule determined by the Tax Commissioner. When the reports were completed for all of the subgroups, the requirement to repeat the process was repealed.

Each report includes detailed information on the policy and fiscal impacts of the exemptions addressed in the report, as well as the apparent rationale for these exemptions and their legislative history. Each report also includes a comparison of the Virginia exemptions with the sales tax structures of other states, with particular emphasis placed on a comparison with the exemptions provided in contiguous states.

There were nineteen exemption categories scheduled that were studied during the 2007-2011 period, as set out below.


Exemptions Analyzed                                                       2007-11 Vol.

• Nonprofit Churches
• Nonprofit Entities                                                      1 – 2007 (PDF 326 kb)
• Donations Withdrawn from Inventory
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• Food Stamp and WIC Voucher Purchases
• School Lunches and Textbooks                                  2 – 2008 (PDF 1.64 Mb)
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• Nonprofit Entities
• Medicines and Drugs
• Hemodialysis and Peritoneal Dialysis                         3-2009 (PDF 827 kb)
• Nonprescription Drugs

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• Durable Medical Equipment
• Motor Vehicle Equipment for Handicapped Persons
• Communication Equipment for Handicapped Persons 4-2010 (PDF 1.38 Mb)
• Medical Products Purchased by Medicaid Recipients
• Nonprofit Entities

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• Fuel Used for Domestic Consumption
• Occasional Sales
• Taxable Leases and Rentals
• Interstate Commerce                                                       5-2011 (PDF 1.38 Mb)
• Nuclear Power Plants
• Multifuel Heating Stoves
• Fabrication of Foodstuffs 

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* Pursuant to Va. Code § 58.1-609.12, the Department of Taxation (“TAX”) is charged with the responsibility of determining the fiscal, economic and policy impact of each of the Retail Sales and Use Tax Miscellaneous Exemptions provided for by Va. Code § 58.1-609.10 and the Retail Sales and Use Tax Exemptions for Nonprofit Entities provided by Va. Code § 58.1-609.11 and reporting such findings to the chairmen of the House and Senate Finance Committees no later than December 1 of each year.
 

Last Updated 2/6/2014 9:37

 

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