Bulletin Number
VTB 85-13
Tax Type
Retail Sales and Use Tax
Description
1985 Legislative Changes: Sales and Use Tax
Topic
Reports
Date Issued
07-17-1985
Virginia Tax Bulletin
Virginia Department of Taxation
85-13
Date: July 17, 1985
Subject: Sales and Use Tax: 1985 Legislative Changes
The 1985 General Assembly enacted several laws which have an impact upon the sales and use tax. The effective date of each of these acts is July 1, 1985, unless otherwise specified. Brief summaries of the enacted legislation are provided below:
1. Fuel for Domestic Consumption Purchased by a Church
This act exempts from the one percent local sales and use tax, where applicable, fuel purchased by a nonprofit church and donated to an individual for use in his residence. Such purchases are already exempt from the three percent state sales and use tax. Nonprofit churches may purchase exempt fuel using Certificate of Exemption, Form ST-13A. (Chapter 98, House Bill 1241)
2. Nonprofit Science-Technology Museums
This act exempts tangible personal property purchased by a nonprofit science-technology museum which receives at least ten percent of its operating budget from the Commonwealth. (Chapter 468, House Bill 1262)
3. Fishing Boats and Motors Purchased by Commercial Watermen
This act exempts from sales and use tax fishing boats and marine engines, outboard motors, and repair and replacement parts used on such boats when purchased by a waterman for use in extracting fish, bivalves or crustaceans for commercial purposes. This exemption only applies to those boats subject to the four percent Retail Sales and Use Tax. Boats subject to the two percent watercraft sales and use tax are not exempted from that tax under this act. Qualifying fishermen may use Certificate of Exemption, Form ST-16 to make exempt purchases. (Chapter 471, House Bill 1388)
4. Nonprofit Organizations Operating Parks on City-Owned Property
This act exempts from sales and use tax tangible personal property purchased for use and consumption by a nonprofit organization which is formed exclusively to operate a public park and museum for recreation and education on property owned by a Virginia city. (Chapter 472, House Bill 1453)
5. Typewriters and Computers used for Communications by the Handicapped
This act exempts from sales and use tax special typewriters and computers and related parts and supplies specifically designed for such products used by handicapped persons to communicate when purchased on a work order or prescription of a licensed physician. (Chapter 477, House Bill 1739)
6. Food Banks
This act exempts from sales and use tax tangible personal property used or consumed by, sold by or donated to nonprofit food banks or other nonprofit organizations organized and operated exclusively for the distribution of food to infants, the ill, or the needy. Food banks may use Certificate of Exemption, Form ST-13 to make exempt purchases. (Chapter 460, Senate Bill 583)
7. Printed Material Temporarily Stored in Virginia for Distribution Outside Virginia
This act exempts from the sales and use tax, catalogs, letters, brochures, reports, and similar printed materials, paper furnished to a printer for fabrication into such materials and the envelopes, containers, and labels to package and mail these materials, provided tile printed materials are not stored for more than twelve months in Virginia and are distributed for use outside the State. However, this act does not exempt administrative supplies, such as letterhead and envelopes, stationery, invoices, billing forms, payroll forms, price lists; time cards and computer cards, even though such supplies may be railed outside Virginia. Currently, the exemption is restricted to catalogs and other printed materials used to advertise the sale of tangible personal property.
The act is effective July, 1, 1986, but will expire June 30, 1990. (Chapter 469, House Bill 1312)
8. Advertising Placed in the Media
This act exempts from sales and use tax the charge for advertising, which is defined as the planning, creating or placing of advertising in newspapers, magazines, billboards, broadcasting and other media, including, without limitation, the provision of concept, writing, graphic design, mechanical art, photography, and production supervision. Any person providing advertising as defined herein, shall be deemed to be the user or consumer of all tangible personal property purchased for use in such advertising.
This act is effective July 1, 1986. (Chapter 473, House Bill 1472)
If there are any questions regarding this bulletin, please contact the Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282 or call (804) 257-8037.
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