§ 58.1-15 amended.

Interest rates; tax overpayments. Provides that the interest rate paid on refunds of overpayments by taxpayers shall be the "overpayment rate" for noncorporate taxpayers established by the Internal Revenue Code plus two percent. HB 1678; CH. 180/SB 868; CH. 146 (effective 1/1/00).

§§ 58.1-106, 58.1-107, and 58.1-108 amended.

Reproductions of tax documents. Authorizes the Tax Commissioner to make reproductions of any correspondence, documents, forms, statements, reports, and working papers kept by the Department of Taxation, and to destroy the originals of the reproduced documents. Currently, only reproductions of state tax returns are authorized, and documents other than tax returns must be held for three years. Attested reproductions of such documents are also made admissible in court proceedings for the same purposes as the original. SB 794; CH. 103.

§ 58.1-322 amended.

Income tax; subtraction for unemployment benefits. Provides a subtraction from federal adjusted gross income for unemployment compensation benefits when computing Virginia taxable income. HB 1487; CH. 588 (effective-see bill).

§ 58.1-322 amended.

Income tax; deduction for long-term health care insurance. Provides a deduction, from federal adjusted gross income in calculating Virginia taxable income, for long-term health care insurance premiums, for taxable years beginning on and after January 1, 2000, provided the individual has not claimed a deduction for federal income tax purposes. HB 1546; CH. 298.

§ 58.1-322 amended.

Income tax; subtraction for first $15,000 of military basic pay. Allows a subtraction of $15,000 from income tax for military basic pay with such amount being reduced dollar-for-dollar when the taxpayer's military basic pay exceeds $15,000 and no subtraction allowed if such basic pay equals or exceeds $30,000. HB 1584; CH. 365 (effective-see bill).

§§ 2.1-342, 2.1-344, 23-38.75, 23-38.76, 23-38.77, 23-38.80, 23-38.81, 23-38.86, 23-38.87, and 58.1-322 amended. Savings trust accounts; income tax deduction. Authorizes the Board of the Higher Education Tuition Trust Fund to create a savings trust account program pursuant to § 529 of the Internal Revenue Code. Savings trust accounts will be offered in addition to the existing prepaid tuition contracts. The measure also establishes an individual income tax deduction for amounts contributed to a savings trust account. The amount of the deduction shall not exceed $2,000 per savings trust account in any taxable year. Unused portions of the deduction may be carried forward until the contribution has been fully deducted. The tax deduction is effective for taxable years beginning on and after January 1, 1999. The existing Freedom of Information Act exemptions for the prepaid tuition contract program are extended to apply to savings trust accounts. HB 1600; CH. 518/SB 919; CH. 485.

§ 58.1-322 amended.

Income tax deduction for purchase of prepaid tuition contracts. Allows taxpayers who are age 70 or older to deduct the full amount paid for the purchase of a prepaid tuition contract. Currently, the amount of the deduction that may be taken by a taxpayer in any year is limited to $2,000 per contract. HB 1933; CH. 535 (effective 1/1/98).

§ 58.1-322 amended.

Income tax deduction for teacher education expenses. Establishes a state income tax deduction for 20 percent of the costs incurred by a licensed primary or secondary school teacher for unreimbursed tuition to attend required continuing teacher education courses provided the individual is not reimbursed for such costs and did not claim a deduction for such costs on his federal income tax return. SB 877; CH. 285.

§ 58.1-322 amended.

Virginia taxable income; subtraction for military basic pay. For taxable years beginning on or after January 1, 2000, allows a subtraction of $15,000 from income tax for military basic pay with such amount being reduced dollar-for-dollar when the taxpayer's military basic pay exceeds $15,000 and no subtraction allowed if such basic pay equals or exceeds $30,000. It also allows a subtraction for the first $15,000 of salary for federal and state employees whose annual salary is $15,000 or less, effective January 1, 2000. The act will take effect January 1, 2000, unless one of the circuit-breakers in the Personal Property Tax Relief Act of 1998 has occurred prior to that date. If such an event has occurred, the effective date is postponed until January 1 after the year when a circuit-breaking event has not occurred. SB 1160; CH. 498 (effective-see bill).

§§ 58.1-322 and 58.1-402 amended.

Capital gains tax; relief for land dedicated to open space. Provides for a subtraction from the income of individuals and corporations the gain on the sale of land or an easement which dedicates the land or easement to an open-space use. To the extent a subtraction is taken, no credit for donating land for preservation shall be allowed for three years after the subtraction is taken. SB 1222; CH. 339.

§ 58.1-332 amended.

Individual income tax; credit for taxes paid other states. Provides a credit to Virginia residents on their income tax when they pay tax to another state for any gain on the sale of a capital asset, effective for taxable years beginning on and after January 1, 2000, provided none of the car tax triggers occurs prior to such date; if one or more of such triggers occurs prior to January 1, 2000, the bill will take effect January 1 in the year after the year none of such triggers occurs. HB 2223; CH. 317.

§ 58.1-339.2 amended.

Historic rehabilitation tax credit. Allows partners and S corporation shareholders to allocate historic rehabilitation tax credits among themselves either in proportion to their ownership interest in their partnership or corporation, or as they mutually agree. This provision is effective retroactive to January 1, 1997. The measure also adds language, stated to be declaratory of existing law, providing that the regulations promulgated by the Director of the Department of Historic Resources for this tax credit program shall establish the extent to which this tax credit is co-extensive with the federal historic rehabilitation tax credit. The Director is authorized to allow taxpayers to make a one-time transfer of credits earned with respect to projects prior to final publication of program regulations. HB 1739; CH. 183/SB 957; CH. 152 (effective - see bill).

§ 58.1-339.2 amended.

Historic rehabilitation tax credit. Allows any Virginia-resident individual, trust, estate, or corporation to qualify for the historic rehabilitation tax credit for eligible expenses incurred in the rehabilitation of a certified historic structure in another state if the other state has a reciprocal program and agreement. The measure is effective for taxable years beginning on or after January 1, 2002. To qualify, the reciprocal program and agreement must apply to residents of the other state who rehabilitate historic structures in Virginia. HB 2370; CH. 213.

§ 58.1-339.6 added.

Income tax; accessibility features for the disabled tax credit. Provides an income tax credit to individuals who add certain features to their homes so they are accessible to the disabled. The tax credit is available for taxable years beginning on and after January 1, 2000, provided none of the car tax triggers occurs prior to that date. If one or more of such triggers occurs, the bill is effective January 1 of the year following the year in which none of the triggers occurs. The amount of the credit is 25 percent of the amount spent on such features, not to exceed $500 or the individual's tax liability in the taxable year the feature is completed. The taxpayer must apply for the credit to the Department of Taxation. Tax credits granted for such proposals shall not exceed $1 million in any taxable year. HB 2358; CH. 404 (effective-see bill).

§ 58.1-339.6 added.

Income tax; credit for political contributions. Establishes a tax credit for individuals who make contributions to candidates for state or local political office equal to 50 percent of the amount of the contribution, subject to a $25 limit for individuals and a $50 limit for married taxpayers filing jointly. The credit will be effective for taxable years beginning on and after January 1, 2000. HB 2749; CH. 464.

§ 58.1-346.1:1 amended. Income tax; voluntary contribution to the U. S. Olympic Committee. Removes the sunset date for making voluntary contributions from tax refunds to the U. S. Olympic Committee. HB 1887; CH. 32.

§§ 10.1-1119.1, 32.1-324.2, 58.1-345.9 and 58.1-346.10 added.

Income tax; check-offs for State Forests Systems Fund and Uninsured Medical Catastrophe Fund. Creates the State Forests System Fund and allows taxpayers receiving a tax refund to designate all or part of it as a contribution to such fund for the development and implementation of conservation and education initiatives in the state forests system. The measure also creates the uninsured Medical Catastrophe Fund and allows taxpayers to contribute all or part of their tax refunds to the Fund, to be used to provide a source of payment for medical treatment of uninsured medical catastrophes. HB 2047; CH. 998.

§ 58.1-346.9 added.

Income tax; Jamestown-Yorktown Foundation voluntary contribution. Allows taxpayers who are due an income tax refund to make contributions of at least one dollar to the Jamestown-Yorktown Foundation for the Jamestown 2007 quadricentennial celebration, for taxable years beginning on and after January 1, 2000, but before January 1, 2008. HB 2335; CH. 210.

§§ 58.1-346.9, 58.1-346.10, and 58.1-346.11 added.

Voluntary income tax contributions; Virginia Foundation for the Humanities and Public Policy, Center for Governmental Studies, and Law and Economics Center. Allows individual taxpayers to make voluntary contributions from income tax refunds to the Virginia Foundation for the Humanities and Public Policy, the Center for Governmental Studies at the University of Virginia, and the Law and Economics Center at George Mason University. Each of these provisions has a January 1, 2005, sunset date. SB 923; CH. 948.

§§ 58.1-401, 58.1-402, 58.1-439.2, 58.1-504, 58.1-2600 through 58.1-2604, 58.1-2606, 58.1-2609, 58.1-2610, 58.1-2611, 58.1-2626, 58.1-2627, 58.1-2628, 58.1-2633, 58.1-2660, 58.1-2682, 58.1-3731 and 58.1-3814 amended; §§ 58.1-400.2, 58.1-433.1, 58.1-440.1 and 58.1-2900 through 58.1-2903 added.

Taxation of electric utilities. Eliminates the state gross receipts tax, the State Corporation Commission special assessment tax, and the local gross receipts tax on electric suppliers. In place of these taxes, consumers of electricity will pay a declining block consumption tax and corporations will be subject to corporate income tax. The consumption tax, which contains components for a state gross receipts tax, SCC regulatory tax, and local consumption tax, will be levied at rates of (i) $0.00155 for the first 2,500 kWh consumed; (ii) $0.00099 for between 2,500 and 50,000 kWh; and (iii) $0.00075 for power consumed in excess of 50,000 kWh. These combined rates may be reduced to reflect lower SCC regulatory charges and to omit the local tax component in localities served by municipal-owned electric utilities that opt not to assess the local tax. In addition, most electric suppliers will pay a net corporate income tax. Electric cooperatives are not subject to the corporate income tax except to the extent sales are made to nonmember customers. Electric suppliers will report real and personal property to the State Corporation Commission, which will centrally assess their property. These changes are in anticipation of federal deregulation of the electric utility industry. SB 1286; CH. 971 (effective - see bill).

§ 58.1-408 amended. Corporate income tax; apportionment. Revises the formula for calculating the portion of a corporation's income that is subject to the Virginia corporate income tax. Currently, Virginia generally uses a three-factor test by which the total of the property factor, payroll factor, and sales factor is divided by three. Under this measure the sales factor is double-weighted, with the result that, when all three factors are present, the property factor, payroll factor, and twice the sales factor will be divided by four. The measure is effective for taxable years beginning on and after January 1, 2000, unless one of the car tax circuit breakers occurs prior to that date, in which case the bill will be effective on January 1 in the year following the year in which none of such circuit breakers occurs. HB 1818; CH. 186 (effective-see bill).

§ 58.1-439.11 added.

Technology and biotechnology investment incentives. Creates a research and development tax credit, not to exceed 15 percent of the amount spent by the taxpayer on an eligible research and development activity. The maximum credit is $100,000 per year. The tax credit will become effective only if reenacted by the 2000 General Assembly Session. The bill also directs the Secretaries of Technology and Commerce and Trade to conduct a study of tax incentives for research and development initiatives. HB 1667; CH. 450 (effective-see bill).

§ 58.1-439.11 added.

Employees with disabilities tax credit. Creates a tax credit for an employer who employs an otherwise-qualified individual with a disability. The credit is equal to 20 percent of the first $6,000 in wages paid annually to the employee for a period not to exceed two years. HB 1676; CH. 304.

§§ 58.1-510 through 58.1-513 added. Tax credits; preservation of land. Provides an income tax credit for individuals and corporations donating land for preservation purposes. The tax credit is 50 percent of the fair market value of the land transferred, not to exceed $50,000 in FY 2000, $75,000 in FY 2001, $100,000 in FY 2002. The credit may only be used to offset taxes owed, but it may be carried forward for a period of five years. If this credit is taken, the taxpayers shall not be allowed to take a subtraction, for three years following the year the credit is taken, for the gain on the sale of land or easements dedicated to open-space use. The measure is effective January 1, 2000, unless any one of the car tax triggers occurs before that date, in which case the act will be effective January 1 in the year after the year none of the car tax triggers occurs. HB 1752; CH. 983/SB 1218; CH. 968. (effective-see bill).

§§ 58.1-535, 58.1-3916, 58.1-3918, 58.1-3981, and 58.1-3987 amended; § 58.1-3991 repealed.

Overpayments of local taxes. Requires a locality that charges interest on delinquent taxes to pay interest on overpayments paid to taxpayers due to erroneous assessments. Provisions authorizing the payment of interest on refunded overpayments are repealed; this measure requires the payment of interest notwithstanding the failure of a locality to conform its ordinance to these provisions. SB 1008; CH. 631.

§ 58.1-602 amended.

Sales and use tax definitions. Exempts certain tangible personal property used to provide Internet services to customers from the retail sales and use tax. The exemption applies to computer hardware and software services, hosting equipment, and distribution equipment purchased by an Internet service provider who provide a package of services, including access to proprietary content, to end-user subscribers. HB 1713; CH. 981.

§ 58.1-602 amended.

Sales and use tax; transfer of manufacturer's tooling, etc. Provides that the transfer of title to property after its use as tools, tooling, machinery or equipment will not be considered a "retail sale" for sales tax purposes if (i) at the time of transfer, the purchaser is obligated under the terms of a written contract and (ii) the transfer is made for the same or a greater consideration to the person for whom the purchaser manufacturer goods. HB 1820; CH. 187.

§ 58.1-602 amended.

Sales tax on leased personal property. Excludes from the retail sales and use tax any separately stated local property tax charges. HB 1911; CH. 723.

§ 58.1-602 amended.

Sales and use tax; transfer of manufacturer's tooling, etc. Provides that the transfer of title to property after its use as tools, tooling, machinery or equipment will not be considered a "retail sale" for sales tax purposes if (i) at the time of transfer, the purchaser is obligated under the terms of a written contract and (ii) the transfer is made for the same or a greater consideration to the person for whom the purchaser manufactures goods. SB 774; CH. 138.

§ 58.1-606 amended.

Use tax distribution in certain localities. Requires the Tax Commissioner to develop a uniform method to distribute local use tax. Any significant changes to the method of local use tax distribution shall be phased in over a five-year period. Distribution information shall be shared with localities prior to such changes. SB 1064; CH. 156.

§ 58.1-608.1 amended.

Sales and use tax; refund for certain building materials. Extends the sunset date from June 30, 1999, to June 30, 2004, for the refund of sales tax paid on building materials purchased by certain non-profit organizations. HB 1636; CH. 12.

§ 58.1-608.1 amended.

Sales tax refund on building materials. Extends through June 30, 2004, the ability of certain tax exempt organizations organized for the purpose of building or rehabilitating low-cost homes to apply for refunds of sales tax paid on building materials. The authorization for the refunds is scheduled to expire on June 30, 1999. SB 847; CH. 334.

§§ 30-19.05, 30-19.1:3, 58.1-608.2, 58.1-609.1, 58.1-609.4, 58.1-609.7 through 58.1-609.10, 58.1-623, and 58.1-623.1 amended.

Sales and use tax exemptions. Extends the expiration date for existing sales and use tax exemption provisions for certain nonprofit organizations to June 30, 2001. Beginning July 1, 2000, nonprofit organizations, except churches, exempt from the sales and use tax under §§ 58.1-609.4, 58.1-609.7, 58.1-609.8, 58.1-609.9 or 58.1-609.10 will be required to submit the same information currently required to be provided by organizations requesting a new exemption. Such information will be updated beginning prior to the 2002 Session, and will thereafter be updated every five years. Failure to file complete and timely information will result in loss of the state sales and use tax exemption. Committee consideration of sales tax exemption legislation will be contingent on a Tax Department determination that the benefited organizations have provided the required information. The measure also clarifies that bills extending sales and use tax exemptions must be introduced by the first day of a legislative session, and requires the Tax Department to issue a preliminary determination that an organization complies with applicable requirements before legislation renewing an exemption is drafted. HB 1571; CH. 776/SB 829; CH. 762.

§ 58.1-608.3 amended.

Sales taxes from Suffolk conference center. Entitles the City of Suffolk to sales tax revenue generated from transactions at a conference center owned by the city, hotel and related public facilities. The tax revenue shall be applied to repayment of bonds issued by the city for the project. HB 1785; CH. 184.

§ 58.1-608.3 amended.

Sales taxes from Suffolk conference center. Entitles the City of Suffolk to sales tax revenue generated from transactions at a city-owned conference center, hotel and related facilities. The tax revenue shall be applied to repayment of bonds issued by the city for the project on or after January 1, 1999, but before July 1, 2001. SB 790; CH. 141.

§ 58.1-609.1 amended.

Sales and use tax; governmental and commodities exemptions. Provides that the exemption from sales tax for the Commonwealth and its political subdivisions does not apply to property they acquire and then transfer to private businesses for their use in a facility to be used by a private entity or for nongovernmental purposes. An exception is made for property acquired for the Advanced Shipbuilding and Carrier Integration Center in Newport News. HB 1765; CH. 401.

§ 58.1-609.1 amended.

Sales and use tax liability of industrial development authorities. Curtails the sales and use tax exemption currently available to industrial development authorities (IDAs) that purchase construction materials tax-free and furnish them to private companies. The measure excludes tangible personal property purchased by IDAs from the governmental sales tax exemption unless it is paid for out of public funds. An exception is carved out for the Advanced Shipbuilding and Carrier Integration Center. SB 781; CH. 471.

§ 58.1-609.2 amended.

Agricultural sales and use tax exemptions; forest products. Defines the harvesting of forest products to include operations prior to the transport of the harvested products that are necessary for removing forest products from the harvesting site, complying with environmental protection and safety requirements, obtaining access to the harvesting site, and loading cut forest products onto highway vehicles. Currently machinery and tools used directly in the harvesting of forest products are exempt from sales and use tax. SB 864; CH. 229.

§§ 58.1-609.7 and 58.1-609.10 amended.

Sales and use tax; exemptions. Extends the expiration date for sales and use tax exemptions for the Cave Spring Softball League, the Lewis-Gale Foundation and the Tranquillity Cancer Foundation to June 30, 2000. The measure also makes the sales and use tax exemption for Williamsburg Radiation Therapy Services effective retroactive to July 1, 1995. HB 1552; CH. 1440.

§ 58.1-609.7 amended.

Sales and use tax; medical-related exemption. Exempts controlled drugs purchased for use by optometrists in their professional practice and eyeglass cases and contact lens storage and cleaning materials, when distributed free of charge, from the retail sales and use tax. HB 1650; CH. 523.

§ 58.1-609.7 amended.

Medical-related sale and use tax exemption. Exempts from the retail sales and use tax controlled drugs purchased for use by optometrists, licensed nurse practitioners, or licensed physician assistants in their professional practice and eyeglass cases and contact lens storage and cleaning materials, when distributed free of charge. SB 782; CH. 472.

§ 58.1-609.7 amended.

Sales and use tax; medical-related exemptions. Clarifies that medicines and drugs purchased for use or consumption by for-profit hospitals are exempt from sales tax. SB 869; CH. 847 (effective 7/1/00).

§ 58.1-611.1 added.

Sales and use tax on food products for home consumption. Reduces the state sales and use tax rate on food purchased for human consumption one-half percent each year for four years beginning January 1, 2000, for a total reduction of two percent. On and after April 1, 2003, the state sales and use tax rate on such food will be one and one-half percent. The Transportation Trust fund one-half percent, the school-age population one percent and the local option one percent rate will not be affected by this legislation. The gradual rate reduction will not occur in any year if (i) the actual general fund revenues for the second fiscal year preceding a fiscal year in which a rate reduction is planned do not exceed the official general fund revenue estimates for such second fiscal year, as estimated in the most recently enacted and approved general appropriation act, by at least one percent or (ii) any of the circuit breakers in the Personal Property Tax Relief Act of 1998 occur. SB 735; CH. 466.

§ 58.1-638 amended.

Washington Metropolitan Area Transit Authority (WMATA). Requires that local payments of WMATA rail transit bonds shall be paid first and apportioned to each locality using the WMATA capital formula, using 95 percent of state aid for these payment, and that remaining funds shall be apportioned to reflect WMATA's allocation formulas by using the relative WMATA-allocated subsidies and relative shares of local transit subsidies. The bill further requires that capital costs must include 20 percent of annual local bus capital expenses and that the Northern Virginia Transportation Commission's November 5, 1998, hold-harmless protections remain in effect. HB 1492; CH. 397/SB 749; CH. 281.

§ 58.1-638. See § 33.1-269; SB 1256.

§ 58.1-811 amended. Recordation tax exemption in Amherst County. Provides an exemption from recordation tax on deeds transferring property in Amherst County from a Habitat for Humanity-type nonprofit organization. The exemption also applies to deeds of trust or mortgage securing loans made by such an organization. HB 1722; CH. 400.

§ 58.1-815.1. See Bonds; HB 2088.

§§ 58.1-1101 and 58.1-3507 amended.

Taxation of well drilling equipment. Equalizes the taxation of water well drilling machinery and mining machinery. Currently, water well drilling machinery is taxable as personal property generally, while the same type of machinery is taxable as intangible personal property or machinery and tools if used in mining. SB 1312; CH. 396.

§ 58.1-1205 amended.

Bank franchise tax; computation of net capital. Requires all banks to add back to taxable capital one-half of the bank's loan loss reserve net of applicable deferred tax. The measure is retroactive to tax years beginning on or after January 1,1995, unless the statute of limitations for a refund or assessment has expired. Any bank entitled to a reserve for loan losses under § 585 of the Internal Revenue Code for a tax year from 1995 through 1998 shall for such year add to its gross capital the amount by which the bank's net loan loss reserves exceed the reserve allowable under § 585. If a locality's obligation to make refunds to banks exceeds the amount of additional assessments collected by the locality for tax years 1995 through 1998, the amount of the excess refunds shall be refunded by the Commonwealth from additional taxes collected by the Commonwealth as the result of this act. Any bank franchise tax return required to be filed by March 1, 1999, shall be due instead by April 1, 1999. SB 1017; CH. 84 (effective 3/12/99).

§§ 58.1-2401, 58.1-2403, and 58.1-2425.

See § 46.2-100; HB 2016.

§ 58.1-2526 amended. State Corporation Commission taxes; refund of overpayment. Authorizes the SCC to refund excess payments of retaliatory taxes. SB 908; CH. 571.

§ 58.1-2606 amended.

Local taxation of real and tangible personal property of public service corporations. Requires aircraft owned by public service corporations to be taxed at the same rate as other aircraft in the locality. Currently, such aircraft are taxed at the real property tax rate. HB 2092; CH. 866.

§ 58.1-2706 amended.

Road tax; credit for payment of motor fuel, diesel fuel and liquefied gases tax. Makes motor carriers eligible for a 16 cents per gallon credit against the road tax on liquefied gases. This is the same credit amount available for motor fuel and diesel fuel. HB 1934; CH. 94.

§ 58.1-3013 amended.

Payment of taxes by credit card. Authorizes any treasurer to accept payment of local taxes, fees, and charges by credit card. Currently, the local governing body must adopt an ordinance authorizing their use. The amount of service charge a treasurer may levy is increased from four percent to the greater of 4.5 percent or six dollars. HB 2497; CH. 216.

§ 58.1-3118 amended.

Personal property tax; book produced by electronic means. Allows the commissioner of the revenue to produce the personal property tax book by electronic means in addition to the methods now authorized, including microfiche, microfilm and other microphotographic processes. HB 1944; CH. 52.

§ 58.1-3123 amended.

Town treasurers. Provides that town officials who perform the duties of treasurer shall have the same authority in the collection of taxes that is available to county and city treasurers. HB 1814; CH. 90 (effective 3/15/99); HB 1841; CH. 777 (effective 3/28/99).

§§ 58.1-3128 and 58.1-3921 amended. Local revenue collection procedures. Clarifies that writs, warrants, summons or other process that a treasurer is authorized to serve shall be served by the sheriff or by the treasurer or his designee and provides treasurers with 60 days from the end of the fiscal year to prepare lists of delinquent taxpayers. Currently, the lists are due by August 1. HB 1942; CH. 192.

§ 58.1-3211 amended.

Taxable real estate; exemptions for elderly and disabled. Permits the Town of Lovettsville to raise the income and net worth requirements for elderly and disabled persons to qualify for real property tax exemptions or deferrals, to the same higher levels which certain localities, including Loudoun County, may use. HB 2136; CH. 205.

§§ 58.1-3231, 58.1-3234 and 58.1-3237 amended. Special assessments; sliding scale and roll back taxes. Permits localities to establish a sliding scale tax rate which would lower tax rates for real estate subject to land-use taxation which is held for longer periods of time. The landowner and locality are required to execute and record a written agreement, for a term not exceeding 20 years. A change in use prior to the end of the agreed-upon holding period will result in a tax due from the date of the agreement at the highest tax rate for the year it ceases to be in a land-use program. HB 2754; CH. 1026.

§ 58.1-3245.1 amended. Tax increment financing; open-space uses. Provides that real estate devoted to open-space use constitutes a public facility which may be financed using tax increment financing. HB 1877; CH. 190/SB 1221; CH. 162.

§ 58.1-3292 amended; § 58.1-3292.1 added.

Real estate tax assessments; new construction. Authorizes any county operating under the urban county executive form of government to provide by ordinance that new buildings shall be assessed when substantially completed or fit for use and occupancy. Real estate taxes on the newly constructed buildings shall be prorated based on the number of days in the tax year that the building is completed. Penalties for nonpayment of tax on new construction completed after November 1 shall not be imposed until the later of December 5 or 30 days after completion. Currently, any locality may elect to assess new buildings if completion occurs prior to November 1, and if it is completed after that date, the new construction is not assessed until the following January 1. SB 776; CH. 760.

§ 58.1-3506 amended.

Classification for business personal property. Establishes a separate class of tangible personal property for tax rate purposes consisting of business personal property used in manufacturing, testing, or operating satellites by a trade or business located within a Multicounty Transportation Improvement District, such as the Route 28 tax district. The classification applies only to property put into service within the District on or after July 1, 1999. The authorization for this classification expires on the first to occur of June 30, 2009, or the date that a special improvements tax is no longer levied on property within the Multicounty Transportation Improvement District. The rate of tax on property in this category shall not exceed the locality's machinery and tools tax rate. The measure also eliminates the classification for machines and tools assessed at $100 million or more and used in a commercial airline's maintenance, repair, and rebuilding facility. SB 995; CH. 289.

§§ 58.1-3506, 58.1-3902 and 58.1-3912 amended.

Tangible personal property tax on certain small boats and watercraft. Adds two new classifications, for tangible personal property tax purposes, for watercraft which is under 18 feet and either motorized or nonmotorized. It also requires marina owners who report to the commissioners of the revenue to include, with the list of boat owners, certain boat-by-size categories. Finally, it allows the treasurer not to send a tax bill if the amount is for $20 or less. SB 1134; CH. 358.

§§ 58.1-3509 and 58.1-3704 amended.

Tax on merchants. Allows localities to exempt merchants from the merchant's capital tax, the BPOL tax, or both. HB 2062; CH. 200.

§ 58.1-3523 amended.

Personal property tax relief. Provides that a locality's tangible personal property tax rate to be used in calculating the state's payment obligations under the Personal Property Tax Relief Act will be the rate in effect on July 1, 1997, or August 1, 1997, whichever is greater. Currently, the August 1, 1997, rate is used for all localities. This measure is effective retroactive to January 1, 1998. HB 1851; CH. 189 (effective 3/17/99).

§ 58.1-3526 amended.

Certification of value of qualifying vehicles. Allows commissioners of the revenue to identify vehicles qualifying for the tax relief provided under the Personal Property Tax Relief Act of 1998 by means other than use of the certified personal property tax book. HB 2312; CH. 99.

§ 58.1-3650.749 amended.

Property tax exemption; Samaritan House, Inc. Makes the property tax exemption for the Samaritan House, Inc., (formerly, Virginia Beach Ecumenical Housing, Inc.) for its real and personal property located in the City of Virginia Beach. In 1998, the General Assembly enacted a property tax exemption for Samaritan House, Inc., but did not provide that it was retroactive to the date that Virginia Beach Ecumenical Housing, Inc., changed its name to Samaritan House, Inc. HB 1802; CH. 30 (effective 9/23/96).

§ 58.1-3650.804 added. Property tax exemption; Forest Youth Athletic Association. Provides a local tax exemption for the Forest Youth Athletic Association, located in Bedford County. HB 1515; CH. 237/SB 784; CH. 223.

§ 58.1-3650.804 added. Property tax exemption; Maupin-Sizemore Foundation. Provides a local tax exemption for the Maupin-Sizemore Foundation, located in the City of Bedford. HB 1516; CH. 238/SB 785; CH. 224.

§ 58.1-3650.804 added.

Property tax exemption; Colonial Beach Moose Lodge. Provides a local tax exemption for Colonial Beach Moose Lodge #1267 in Westmoreland County. HB 1526; CH. 239.

§ 58.1-3650.804 added.

Property tax exemption; 121 Verona Corporation. Provides a local tax exemption for the 121 Verona Corporation in Augusta County. HB 1549; CH. 240.

§ 58.1-3650.804 added.

Property tax exemption; Blue Ridge Housing Development Corp. Grants a property tax exemption to the Blue Ridge Housing Development Corp., for real property it owns in the City of Roanoke. HB 1554; CH. 517.

§ 58.1-3650.804 added.

Property tax exemption; Alliance for the Physically Disabled, Inc. Exempts real and personal property located in Fairfax County and owned by the Alliance for the Physically Disabled, Inc. HB 1572; CH. 25.

§§ 58.1-3650.804 and 58.1-3650.805 added.

Property tax exemption; Central Virginia Education Telecommunication Corporation and Rainbow Center 4-H Therapeutic Equestrian Program, Inc. Provides a local property tax exemption for Central Virginia Education Telecommunication Corporation located in Stafford County and the Rainbow Center 4-H Therapeutic Equestrian Program, Inc., in Prince William County. HB 1597; CH. 340.

§ 58.1-3650.804 added.

Property tax exemption; Point of Honor, Inc. Exempts property of Point of Honor, Inc., located in the City of Lynchburg, from taxation. HB 1602; CH. 270/SB 786; CH. 264.

§ 58.1-3650.804 added. Property tax exemption; Wintergreen Nature Foundation. Provides a local property tax exemption for the Wintergreen Nature Foundation in Nelson County. HB 1617; CH. 26.

§ 58.1-3650.804 added.

Personal property tax; Middlesex County Museum, Inc. Provides a local property tax exemption for Middlesex County Museum, Inc., in Middlesex County. HB 1621; CH. 173.

§ 58.1-3650.804 added.

Property tax exemption; CANDII. Provides a local property tax exemption for CANDII, in the City of Hampton. HB 1641; CH. 13/SB 840; CH. 477.

§ 58.1-3650.804 added.

Property tax exemption; Isle of Wight-Smithfield-Windsor Chamber of Commerce. Provides a local property tax exemption for the Isle of Wight-Smithfield-Windsor Chamber of Commerce in Isle of Wight County. HB 1646; CH. 522.

§ 58.1-3650.804 added.

Property tax exemption; Central Valley Habitat for Humanity, Inc. Provides a local property tax exemption for Central Valley Habitat for Humanity, Inc., located in Rockingham County. HB 1649; CH. 175.

§ 58.1-3650.804 added.

Property tax exemption; Vetshouse, Inc. Provides local property tax exemption for Vetshouse, Inc., in the City of Virginia Beach HB 1674; CH. 179/SB 772; CH. 137.

§ 58.1-3650.804 added.

Property tax exemption; Virginia Beach "HOME," Inc. Provides a local property tax exemption for Virginia Beach "HOME," Inc., in the City of Virginia Beach. HB 1675; CH. 243.

§§ 58.1-3650.804 and 58.1-3650.806 added.

Property tax exemptions; Francis Makemie Society, Accomack County Nursing Home Commission, Inc., and Eastern Shore of Virginia Habitat for Humanity, Inc. Provides local property tax exemptions for the Francis Makemie Society and Accomack County Nursing Home Commission, Inc., in Accomack County and the Eastern Shore of Virginia Habitat for Humanity, Inc. HB 1684; CH. 655.

§ 58.1-3650.804 added.

Property tax exemption; Meals on Wheels of Greater Richmond, Inc. Provides a local property tax exemption, effective January 1, 2000, for Meals on Wheels of Greater Richmond, Inc., in Henrico County. HB 1694; CH. 657/HB 1784; CH. 660/SB 732; CH. 616/SB 862; CH. 621.

§ 58.1-3650.804 added.

Property tax exemption; Blanks Memorial Foundation, Ltd. Provides a local tax exemption for Blanks Memorial Foundation, Ltd., in Halifax County. HB 1712; CH. 305.

§ 58.1-3650.804 added.

Property tax exemption; Newport News Green Foundation, Inc. Provides a property tax exemption for Newport News Green Foundation, Inc., in the City of Newport News. HB 1723; CH. 27/SB 795; CH. 226.

§ 58.1-3650.804 added.

Property tax exemption; Odiero, Ltd. Provides a personal property tax exemption for Odiero, Ltd., operating as SEEDS (Seek Education, Explore, DiScover), located in Montgomery County. HB 1724; CH. 244/SB 825; CH. 474.

§ 58.1-3650.804 added.

Property tax exemption; DeHart Botanical Gardens, Inc. Provides a property tax exemption for DeHart Botanical Gardens, Inc., in Patrick County. HB 1728; CH. 524.

§ 58.1-3650.804 added.

Property tax exemption; Highland Center, Inc. Provides a property tax exemption for Highland Center, Inc., in Highland County. HB 1749; CH. 245.

§§ 58.1-3650.804, 58.1-3650.805, and 58.1-3650.806 added.

Property tax exemptions; Beach Health Clinic, Inc., Judeo-Christian Outreach Center, Inc., and Virginia Beach "HOME," Inc. Exempts property of Beach Health Clinic, Inc., Judeo-Christian Outreach Center, Inc., and Virginia Beach "HOME," Inc., located in the City of Virginia Beach, from taxation. The exemptions for Beach Health Clinic, Inc., and Judeo-Christian Outreach Center, Inc., are effective retroactive beginning July 1, 1998. HB 1764; CH. 246.

§§ 58.1-3650.804 and 58.1-3650.809 added.

Property tax exemptions; American Roentgen Ray Society, et al. Exempts the following organizations from property taxes in Loudoun County: The Center for Pastoral Counseling; Door of Hope; Loudoun Transportation Association; Regional Properties, Inc.; Resources for Independence of Virginia, Inc.; and the American Roentgen Ray Society. HB 1781; CH. 28.

§ 58.1-3650.804 added. Property tax exemption; Chesterfield Alternatives, Inc. Exempts certain property of Chesterfield Alternatives, Inc., located in Chesterfield County, from taxation. HB 1787; CH. 36.

§ 58.1-3650.804 added.

Property tax exemption; Richmond Animal League. Exempts certain property of Richmond Animal League, located in Chesterfield County, from taxation. HB 1788; CH. 29.

§ 58.1-3650.804 added. Property tax exemption; Larrymore Lawns Community Park Association. Provides a property tax exemption for Larrymore Lawns Community Park Association in the City of Norfolk for locations known as 7001 Winn Lane, 164.09 ft. Larrymore Lawns Sec. 1 S S Winn Avenue, and parcel 220.66 ft. S S Johnston Road. HB 1809; CH. 247/SB 859; CH. 478.

§ 58.1-3650.804 added.

Property tax exemption; United Way branch. Provides a local real estate tax exemption for the property located at 2515 Walmer Avenue and owned by the United Way of South Hampton Roads. HB 1811; CH. 31.

§ 58.1-3650.804 added.

Property tax exemption; Capital Area Community Food Bank, Inc. Exempts certain real and personal property of the Capital Area Community Food Bank, Inc., located in Fairfax County, from taxation. SB 741; CH. 134.

§ 58.1-3650.804 added. Property tax exemption; Somerset-Olde Creek Recreation Club, Inc. Exempts certain property of the Somerset-Olde Creek Recreation Club, Inc., located in Fairfax County, from taxation. SB 755; CH. 468.

§ 58.1-3650.804 added. Property tax exemption; Judeo-Christian Outreach Center, Inc. Exempts property of Judeo-Christian Outreach Center, Inc., located in the City of Virginia Beach, from taxation. The organization obtained a property tax exemption in 1990 when it was named Virginia Beach Christian Outreach Group, Inc. The exemption is retroactive to July 1, 1998. SB 773; CH. 222.

§§ 58.1-3650.804, 58.1-3650.805, and 58.1-3650.806 added.

Property tax exemptions. Exempts from taxation the property of (i) American Type Culture Collection, located in Prince William County; (ii) Lakeview Swim Club, Inc., located in Fairfax County; and (iii) Rainbow Center 4-H Therapeutic Equestrian Program, Inc., located in Prince William County. SB 783; CH. 566.

§ 58.1-3650.804 added.

Property tax exemption; Virginia Association for the Blind, Inc. Exempts property of the Virginia Association for the Blind, Inc., located in the City of Chesapeake, from taxation. SB 789; CH. 225.

§ 58.1-3650.804 added.

Property tax exemption; Beach Health Clinic, Inc. Exempts property of Beach Health Clinic, Inc., located in the City of Virginia Beach, from taxation. SB 811; CH. 227 (effective 7/1/98).

§ 58.1-3650.804 added.

Property tax exemption; Goodwin House, Inc. Exempts certain property of Goodwin House, Inc., located in the City of Alexandria, from taxation effective January 1, 1999. SB 873; CH. 147.

§ 58.1-3715 amended.

BPOL tax; out-of-state contractors. Subjects any contractor without a definite place of business in any Virginia locality to the BPOL tax or fee imposed by a locality when the amount of the business done there will exceed $25,000 for the license year. HB 2106; CH. 203.

§ 58.1-3734 amended.

BPOL tax; license tax on motor vehicle dealers. Allows localities to provide by ordinance that any motor vehicle dealer who collects excess business license tax from purchasers shall return the overpayment to the purchasers within 120 days of discovering the overpayment and certifying such to the local commissioner of the revenue or other local assessing official. Any amounts which are not refunded shall be paid to the commissioner of the revenue or other local assessing official as additional business license tax. HB 1930; CH. 862.

§ 58.1-3734 amended.

Soil survey. Extends the date for completion of the inventory of Virginia's soil resources from the year 2000 to 2006 and makes completion of the survey contingent upon the availability of state and federal resources. SB 1028; CH. 957.

§ 58.1-3813 amended.

Local tax; E-911. Provides that counties with populations of no less than 10,000 and no more than 12,000, no less than 21,000 and no more than 21,500, and no less than 27,500 and no more than 28,000 may authorize the payment of the E-911 director with the proceeds of the E-911 tax. Such counties would include Culpeper, Greene, Madison, and Orange. Bedford, Frederick, Tazewell, and Washington Counties already have the authority to use proceeds from the E-911 tax for payment of the director's salary. HB 1569; CH. 364.

§ 58.1-3818 amended; § 15.2-1104.1 added.

Admissions tax. Provides that localities may elect not to charge admissions tax for attendance of any event, the net receipts of which go wholly to charitable purposes, if the sponsor of the event is exempt from sales and use tax under the categories for educational, medical, nonprofit civic and community service, or miscellaneous organizations. HB 1810; CH. 986.

§ 58.1-3819 amended.

Transient occupancy tax. Authorizes Rockbridge County (described by population) to levy a transient occupancy tax at a rate not to exceed five percent. HB 1618; CH. 241.

§ 58.1-3819 amended.

Transient occupancy tax; Prince William County. Allows any county which has adopted the county executive form of government and which is contiguous to any county operating under the urban county executive form of government to impose an additional three percent for the transient occupancy tax and to use the additional amount for tourism and marketing of tourism, as determined by consulting with local tourism organizations. HB 2086; CH. 253.

§ 58.1-3819 amended.

Transient occupancy tax; increase in certain counties. Allows Franklin County, defined by population brackets, to increase the transient occupancy tax from two percent to five percent. The additional tax revenues from the portion of the rate over two percent must be spent for tourism initiatives as determined in consultation with local tourism industry organizations. HB 2386; CH. 260.

§ 58.1-3819 amended.

Transient occupancy tax. Adds Rockbridge County, defined by population brackets, to the list of counties authorized to levy a transient occupancy tax at a rate not exceeding five percent. Currently, it is subject to the general rate limitation of two percent. The revenue generated by the portion of rate in excess of two percent is required to be used for tourism, marketing of tourism or initiatives that, as determined in consultation with the local tourism industry organizations, attract travelers to the locality and generate tourism revenues in the locality. SB 1050; CH. 233.

§ 58.1-3819 amended.

Transient occupancy tax. Adds Franklin County, defined by population brackets, to the list of counties authorized to levy a transient occupancy tax at a rate not exceeding five percent. Currently, it is subject to the general rate limitation of two percent. The revenue generated by the portion of rate in excess of two percent is required to be used for promoting tourism or travel, or business that generates tourism or travel, in the locality. SB 1098; CH. 234.

§ 58.1-3822 amended.

Additional transient occupancy tax; sunset date. Extends the sunset date from December 31, 1999, to December 31, 2002, for the additional transient occupancy tax allowed any county with the county manager plan of government. HB 1626; CH. 242/SB 837; CH. 228.

§§ 58.1-3833 and 58.1-3840 amended; § 58.1-611.1 added. Sales and use tax; reduced rate on food purchased for human consumption; Food Tax Reduction Program. Reduces the state sales and use tax rate on food purchased for human consumption one-half percent each year for four years beginning January 1, 2000, for a total reduction of two percent. The next one-half percent will be removed April 1, 2001, until on and after April 1, 2003, the state sales and use tax rate on such food will be one and one-half percent. The local option one percent rate will not be affected by this legislation. The gradual rate reduction will not occur in any year when the actual general fund revenues for the second fiscal year preceding a fiscal year in which a rate reduction is planned do not exceed the official general fund revenue estimates for such second fiscal year, as estimated in the most recently enacted and approved general appropriation act, by at least one percent or if any of the circuit breakers in the Personal Property Tax Relief Act of 1998 occur. Finally, a Food Tax Reserve Fund is created on the books of the Comptroller to be used for purposes of the Food Tax Reduction Program. HB 1601; CH. 366 (effective-see bill).

§ 58.1-3842 added.

Combined transient occupancy and food and beverage tax. Authorizes Rappahannock County, defined by population brackets, to levy a combined transient occupancy and food and beverage tax on the aggregate charges for rooms and meals when such charges are not separately stated. This measure applies only to bed and breakfast establishments. The maximum rate of the combined tax is four percent of the combined charges. The tax may be levied only if the county has approved a food and beverage tax by referendum. SB 778; CH. 617.

§ 58.1-3906 amended.

Taxation; failure to pay certain local taxes. Provides that any member, manager or employee of a limited liability company is an individual who may be held personally liable for any delinquent local admissions, transient occupancy, food and beverage, or daily rental tax which he willfully fails to pay. HB 2154; CH. 541.

§ 58.1-3942. See § 46.2-640; HB 1581.

§ 58.1-3958 amended.

Local administrative costs for delinquent taxpayers. Allows localities to impose a fee for administrative costs when collecting on a nuisance abatement lien equal to the lesser of $150 or 25 percent of the cost, but in no event less than $25. HB 2535; CH. 389.

§§ 58.1-3965 and 58.1-3969 amended. Local tax administration; sale of land for delinquent taxes. Provides that real estate may be presumed to be abandoned if it is assessed at $20,000 and (i) the tax is delinquent for three years and (a) the land or structure has been declared a nuisance (b) proper notice has been given but the owner of record has failed to act, and (c) the locality has placed liens on the property to pay for abatement of code violations which have not been paid; or (ii) the tax is delinquent for seven years. If property is deemed abandoned, the court shall not be required to refer the case to a commissioner in chancery prior to its sale for delinquent taxes. Currently referral to a commissioner in chancery is optional. HB 2211; CH. 674.

§ 58.1-3967 amended.

Distribution of proceeds of tax sales. Establishes a procedure addressing the distribution of the portion of the proceeds from the tax sale of real estate due to the unknown beneficiary of a lien on the property. The proceeds from the sale of property sold for delinquent taxes are required to be applied, after payment of the taxes, penalties, interest, fees, and costs, to liens against the property, and any balance is to be paid to the former owner. If the beneficiary of a deed of trust or other lien on the property is unknown and does not claim his money within two years of the sale, the clerk of court is required to pay the money to the locality. If the lienholder later comes forward and shows he is entitled to the funds, the locality may pay the money to him, which is the same process currently in effect with respect to unknown former owners of the land. Currently, the proceeds due to an unknown lienholder escheat to the Commonwealth. HB 1977; CH. 403.

§ 58.1-3967 amended; § 58.1-3970.1 added.

Local taxes; deeding title of certain real estate to locality. Allows for certain real estate on which delinquent taxes or other liens are due to be conveyed to the locality by a special commissioner appointed by the circuit court in lieu of the locality selling it at public auction. Notice must be given and opportunity for a hearing provided before the special commissioner is appointed. Any surplus from the locality's eventual sale of the property shall be payable to the former owner, his heirs or assigns, or to the beneficiaries of any lien against the property. HB 2231; CH. 869.

§ 58.1-3980 amended.

Corrections of local taxes. Authorizes taxpayers assessed with any local tax to apply to the commissioner of the revenue or other assessing official for a correction of the assessment. Currently, taxpayers may apply to the commissioner or other official only about taxes on tangible personal property, machinery and tools, or merchants' capital, and regarding local license taxes. HB 1941; CH. 123.

§§ 58.1-3980 and 58.1-3981 amended. Correcting erroneous real estate assessments. Authorizes commissioners of revenue to correct real estate assessments resulting from factual errors made by other appraisers conducting general reassessments without a petition to court by the taxpayer or the commissioner. A commissioner currently has the ability to make such corrections if the commissioner conducted the erroneous assessment or if the mistake was clerical. Currently, a taxpayer or the commissioner is required to petition the circuit court for relief from an erroneous assessment caused by the factual error of a real estate appraiser. HB 2313; CH. 677/SB 914; CH. 624.

§ 58.1-3984 amended; § 58.1-3983.1 added.

Local business taxes; appeals and rulings. Provides for a similar appeals and rulings process through the local assessor and the state Tax Commissioner for all local business taxes (i.e. machinery and tools tax, business tangible personal property tax and merchant's capital tax) as is currently allowed for the BPOL tax. The effective date is January 1, 2000, except the provisions relating to valuation will be effective for assessments made on or after January 1, 2001. The bill also directs interested parties to propose recommendations relating to valuation, rate classification, and associated matters by December 15, 1999. HB 2085; CH. 202/SB 780; CH. 470 (effective-see bill).

§ 58.1-4007 amended.

Lottery; powers of Board. Provides that the Lottery Board shall have the power to accept, modify or reject any revenue projections before they are forwarded to the Governor. HB 1507; CH. 716.

§ 58.1-4007.1 amended.

State lottery law; Gamblers Anonymous. Removes the sunset date on the provision requiring that all lottery tickets bear a telephone number for Gamblers Anonymous or similar organizations. HB 2190; CH. 736.

§ 58.1-4019 amended.

Identity of lottery winners. Limits the requirement that lottery prize winners disclose their identity and social security number to instances where the prize is greater than $100 and the winning ticket is redeemed at an office of the Lottery Department. Currently, the identity and social security number of all natural persons receiving any portion of the proceeds of a winning lottery ticket, regardless of the prize amount or where redeemed, must be provided. HB 2475; CH. 34.