Bulletin Number
VTB 81-13
Tax Type
Retail Sales and Use Tax
Description
Sales and Use Tax: 1981 Legislative Changes
Topic
Exemptions
Date Issued
06-25-1981
SUBJECT: SALES AND USE TAX: 1981 LEGISLATIVE CHANGES
The 1981 General Assembly passed several laws which affect the Virginia sales and use tax. The purpose of this bulletin is to announce these changes.
The Virginia Retail Sales and Use Tax Regulations will be amended to reflect these changes and necessary changes to forms and certificates of exemption are being made.
The changes are explained below according to subject matter.
Camping Jamboree
Virginia Code § 53-441.2(g) is amended to exempt from sales and use tax purchases of tangible personal property by a nonsectarian, nonprofit youth organization exempt under § 501(c)(3) of the Internal Revenue Code, sponsoring a national or international camping assembly held in Virginia, for use at such camping assembly. In order to qualify for this exemption the property must be used in a camping assembly lasting at least seven (7) continuous days and having an attendance of 20,000 or more. This law became effective March 21, 1981. (S.B. 579)
Educational Telecommunication Entities
Effective July 1, 1981, Virginia Code § 58-441.6(t) exempts from the sales and use tax tangible personal property donated to, purchased for donation to, or sold by a noncommercial educational telecommunications entity. Formerly, only tangible personal property purchased for use or consumption by such entities was exempt. (H.B. 1255)
For Export
Effective July 1, 1981, Virginia Code § 58-441.6(r) exempts tangible personal property delivered to a factor or export agent for subsequent export to a foreign country. The items must be shipped to the agent by the seller in his own vehicle, by common carrier, contract carrier or United States mail to qualify for exemption. If possession is taken by the purchaser and delivered by him to the factor or export agent, the tax will apply. (H.B. 1640)
Historical Societies
Virginia Code § 58-441.6(jj) which exempts historical documents, manuscripts, paintings and objects of art is repealed effective July 1, 1981. On this date, the only sales and use tax exemption applicable to historical societies is Virginia Code § 53-441.6(ii) which exempts historical documents, maps, rare books and manuscripts acquired by a nonprofit State historical society which maintains a research library open to the public free of charge for research and educational purposes. (S.B. 559)
Institution of Learning
Effective July 1, 1981, the exemption for a nonprofit institution of learning under Virginia Code § 58-441.6(t) is expanded to include an educational institution doing business in Virginia which admits regularly enrolled high school and college students to provide face-to-face educational experiences in American Government, provided the program leads to the successful completion of a high school history, civics, or problems of democracy course or is accepted by a college for undergraduate or graduate credit. (H.B. 1640)
Mining Operations
Effective July 1, 1981, Virginia Code § 58-441.3(q) is amended to expand the exemption for industrial mining operations. As a result of this change, tangible personal property used in all steps which are an integral part of the mining operation is exempt from the tax. Property used in ancillary activities, such as administration or general maintenance will continue to be subject to the tax. (H.B. 1644)
Registration Fee
Effective July 1, 1981 the $5.00 fee currently required for registering to collect the sales tax is repealed. No registration fee will be required. The $10.00 fee previously required for reissuing a suspended or revoked certificate of registration is also repealed. (S.B. 574)
New Business Listings
Effective July 1, 1981, the department will provide to the local commissioner of revenue, upon request, a quarterly listing of new sales tax dealers within the locality. This provision codifies the department's current administrative position. (H.B. 1533)
Heating Fuels
The 1980 General Assembly enacted legislation exempting certain fuels used for domestic consumption from the 3% State sales and use tax. The 1981 legislation changed the effective date of this exemption from July 1, 1982 to October 1, 1981. (S.B. 831)
Watercraft
Effective January 1, 1982, the 4% retail sales and use tax will no longer apply to certain watercraft. Instead, these vessels will be subject to a 2% watercraft-sales and use tax and will be titled by the Commission of Game and Inland Fisheries. (H.B. 986)
Anyone having questions regarding these sales and use tax legislative changes should write the department at P. O. Box 6-L, Richmond, Virginia 23282 or call at (804) 257-8037.
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