Tax Type
Retail Sales and Use Tax
Description
Sales tax revenue generated by retailers under the Public Facilities Act.
Topic
Collection of Tax
Eligible Transactions
Records/Returns/Payments
Date Issued
06-08-2005
June 8, 2005
Re: Request for Ruling: Retail Sales and Use Tax
Dear ************************:
This will reply to your letter of April 11, 2005 in which you inquire as to the procedure for obtaining the sales tax entitlement for sales tax revenues generated by through the Public Facilities Act.
The Public Facilities Act (the "Act") (1992 Acts of Assembly, Chapter 851) provides a mechanism that allows a portion of the state sales tax revenues attributable to sales in new, renovated, or expanded public facilities to be returned to the locality in which the facility is located. In 2001, the General Assembly amended this Act to include the City of Staunton (2001 Acts of Assembly, Chapter 522), thus qualifying sales tax generated from sales at the **************** for distribution to the City of Staunton. The entitlement to the sales tax revenue under the Act is to be used to pay down the bond obligation incurred by the locality in financing the building or renovation of the facility. There is no provision within the Act that would allow a credit or reimbursement to the locality for sales and use tax paid by a real property contractor during the building or renovation phase of a facility project. The locality is only entitled to the sales tax revenue generated by transactions taking place in the facility.
All businesses or persons making sales at the facility must register with the Department and report their sales and use tax on Form PF-1, Virginia Public Facility Sales Tax Return. A representative from the Department, ***** will contact you to coordinate this effort. ***** can be reached by telephone at ***** or by Fax at *****.
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- Sincerely,
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- Kenneth W. Thorson
Tax Commissioner
- Kenneth W. Thorson
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KWT/wbs
Rulings of the Tax Commissioner