TITLE 58.1. TAXATION.

§§ 58.1-3, 58.1-609.10, and 58.1-609.11 amended.
Sales and use tax; nonprofit entities. Modifies the process for exempting nonprofit entities from sales and use tax as such process was designed by the 2003 General Assembly to go into effect on July 1, 2004, by: (i) permitting churches to continue self-renewal exemptions; (ii) grandfathering and creating a new category of the types of organizations that are exempt from collecting sales and use tax on fund-raising sales of tangible personal property; and (iii) making several technical amendments. HB 515; CH. 536/SB 585; CH. 515.

§ 58.1-3 amended.
Taxation; secrecy of information. Allows the Tax Commissioner to provide tax information about employers and employees to the Commissioner of Labor and Industry to facilitate the collection of unpaid wages. The information would be used solely for satisfying the wage claims made under the payment of wage law and would be subject to agreement between Labor and Industry and Taxation. SB 165; CH. 166.

§ 58.1-3 amended.
Taxation; secrecy of information. Allows the Tax Commissioner to provide to the Department of the Treasury for its confidential use the tax information needed to locate the holders of unclaimed property. SB 166; CH. 582.

§ 58.1-3 amended.
Taxation; secrecy of information. Allows the Tax Commissioner to provide earnings information to the director of the Department of Human Resource Management to assist in collecting overpayments resulting from the failure of injured workers to report income. SB 403; CH. 594.

§ 58.1-9 amended.
Individual income tax preparers; electronic filing; penalty. Requires income tax return preparers who prepared at least 100 individual income tax returns for any taxable year beginning on January 1, 2004, (200 returns for taxable years beginning January 1, 2003) to file tax returns for all subsequent taxable years using electronic means or software that produces a two-dimensional barcode using two-dimensional-technology reflecting information. HB 1159; CH. 562.

§ 58.1-301 amended.
Income tax; the Commonwealth's system of taxation and conformity of terms. Changes the date that Virginia conforms with the provisions of the Internal Revenue Code from December 31, 2002, to December 31, 2003. SB 526; CH. 512 (effective 4/12/04).
§§ 58.1-302, 58.1-321, 58.1-322, 58.1-339.8, 58.1-391, 58.1-392, 58.1-402, 58.1-441, 58.1-603, 58.1-604, 58.1-604.1, 58.1-605, 58.1-606, 58.1-609.3, 58.1-611.1, 58.1-614, 58.1-626, 58.1-638, 58.1-639, 58.1-801, 58.1-803, 58.1-807, 58.1-808, 58.1-1001, 58.1-1009, 58.1-1018, 58.1-1206, and 58.1-3833 amended; §§ 32.1-366, 32.1-367, 58.1-390.1, 58.1-390.2, 58.1-393.1, 58.1-394.1, 58.1-394.2, 58.1-395, 58.1-628.2, 58.1-638.1, and 58.1-1021.01 through 58.1-1021.05 added; §§ 58.1-390, 58.1-394, 58.1-627, and 58.1-628 repealed. Omnibus Tax Bill. Makes several changes to the cigarette, recordation, income and sales taxes as follows:
Sales tax on food: Reduces the state sales tax on food by one-half cent effective July 1, 2005, an additional one-half cent effective July 1, 2006, and an additional one-half cent effective July 1, 2007.
Income tax: Increases the personal exemption amount from $800 to $900, effective January 1, 2006.
Increases the standard deduction for married individuals from $5,000 to $6,000, effective January 1, 2005.
Raises the filing threshold from $5,000 to $7,000 for individuals and from $8,000 to $14,000 for married couples, effective January 1, 2005.
Maintains the age deduction as it currently exists for taxpayers aged 65 and older as of January 1, 2004. Taxpayers who are currently 62 through 64 as of such date will continue to receive their current deduction, but once they reach 65, they will be subject to a means test. Those taxpayers who currently are younger than 62 as of January 1, 2004, will not receive the $6,000 deduction for age and will be subject to a means test once they turn 65 for their $12,000 deduction. These changes are effective January 1, 2004.
The bill allows low-income taxpayers to claim an income tax credit based upon the federal earned income tax credit in lieu of the current low-income tax credit beginning January 1, 2006.
Requires additions to federal taxable income for certain deductions for intangible and interest expense, but provides certain safe-harbors related to Delaware holding companies, effective January 1, 2004.
Pass-through entities: Requires pass-through entities' information returns to be filed with the Tax Department, effective for taxable years beginning on and after January 1, 2004.
Cigarette tax: Increases the state cigarette tax from 2.5 cents to 20 cents per pack. Beginning July 1, 2005, the rate increases to 30 cents per pack. The bill also establishes a cigarette wholesaler tax at the rate of 10% beginning March 1, 2005.
Recordation tax: Increases the state recordation tax from 15 cents to 25 cents per $100.
Sales tax: Increases the state sales and use tax one-half percent from 3.5 percent to 4 percent, which when combined with the local 1% sales tax will raise the combined rate from 4.5% to 5%, effective August 1, 2004.
Eliminates sales tax exemptions for certain public service corporations. HB 5018; CH. 3, 2004 Special Session.

§§ 58.1-305 and 58.1-306 amended.
Income tax; filing returns with the commissioner of the revenue and the Department of Taxation. Clarifies that taxpayers may file their individual and fiduciary income tax returns with the Department of Taxation as well as the local commissioners of the revenue. HB 902; CH. 544.

§ 58.1-306 amended.
Income tax returns. Allows the Department of Taxation to include the mailing addresses of the Department and the local commissioners of the revenue with the appropriate income tax forms and filing instructions. HB 104; CH. 521.

§ 58.1-339.4 amended.
Income tax; qualified equity and subordinated debt investment tax credit. Reduces the annual revenue level required for a company to qualify for the credit from $5 million to $3 million; excludes companies from participating in the credit that have already successfully raised more than $3 million in total investment capital; eliminates the availability of the credit to professional/institutional investors such as larger venture capital funds; and adjusts the tax penalties under the credit so they do not create disincentives to investment, and are in line with counterparts in competitive states. The provisions of this bill shall be effective for taxable years beginning on or after January 1, 2005. HB 282; CH. 614.

§§ 30-19.1:10 and 58.1-344.3 added.
Voluntary contributions of tax refunds to certain organizations. Provides requirements for adding new and removing current organizations that are recipients of voluntary contributions of tax refunds. The bill limits the number of organizations who may receive such voluntary contributions to a list of 25 organizations and designates the next two additions to such list in the event another organization is removed. HB 1486; CH. 649.

§ 58.1-439 amended.
Income tax; major business facility job tax credit. Lowers the threshold amount of jobs from 100 to 25 that must be created in order to take the major business facility job tax credit in severely economically distressed areas that have an unemployment rate of at least twice the average statewide unemployment rate and applies only to taxable years 2004 and 2005. The total amount of credit permitted annually in such areas is limited to $100,000 in the aggregate. HB 615; CH. 619.

§ 58.1-439 amended.
Taxation; major business facility job tax credit. Extends the sunset date for the major business facility job tax credit from January 1, 2005, to January 1, 2010. SB 231; CH. 170.

§ 58.1-439.7 amended.
Corporate income taxes; tax credit for machinery and equipment used to produce property from recyclable materials. Extends the sunset date from December 31, 2003, to December 31, 2006, for a corporate income tax credit for machinery and equipment used to produce personal property from recyclable materials. SB 690; CH. 611.
§ 58.1-439.12:01. See Budget Bill; HB 5001.

§ 58.1-513 amended.
Land preservation income tax credits. Permits any pass-through entity that allocates or transfers land preservation income tax credits among taxpayers to designate with the Tax Commissioner a general partner, member/manager, or shareholder of the entity as the individual that the Tax Commissioner must first proceed against for the collection of taxes in the event any portion of the credit is disallowed in the future. HB 1185; CH. 635.

§ 58.1-602 amended.
Sales and use tax; telephone calling cards. Makes telephone calling cards subject to the state sales and use tax and exempts them from all other state and local utility taxes. HB 246; CH. 60.

§ 58.1-608.3 amended.
Sales tax revenues; allocation. Adds Newport News to the cities that are permitted to keep a portion of the state sales tax collected in certain public facilities for which bonds have been issued. HB 1208; CH. 566.

§ 58.1-608.3 amended.
Entitlement to certain sales tax revenues. Entitles the City of Salem (described by population) to all sales tax revenues generated by transactions taking place in certain public facilities to pay the cost of bonds issued to pay for such public facilities. Such entitlement shall continue for the lifetime of such bonds, which entitlement shall not exceed 30 years, and all such sales tax revenues shall be applied to repayment of the bonds. HB 1243; CH. 568.

§ 58.1-608.3 amended.
Sales tax; revenues generated from transactions in certain public facilities in Newport News. Entitles the City of Newport News to sales tax revenues generated from public facilities constructed or substantially renovated from the proceeds of bonds issued by the City between July 1, 2004, and July 1, 2007. SB 398; CH. 506.

§ 58.1-609.5 amended.
Sales and use tax exemption for software and content delivered electronically. Expressly exempts the electronic delivery of software, data, content and other information services via the Internet from the Commonwealth's sales and use tax. This bill clarifies existing law by codifying a long line of State Tax Commissioner Rulings (97-405 and 02-111). SB 632; CH. 607.

§ 58.1-609.6 amended.
Sales tax; exemption for textbooks and other educational materials for free distribution. Extends the sunset date from July 1, 2004, to July 1, 2008, for textbooks and other educational materials withdrawn from inventory at book-publishing distribution facilities for free distribution to professors. HB 1084; CH. 63/SB 347; CH. 590.

§ 58.1-609.6 amended.
Sales and use tax exemption; advertising businesses. Extends the sunset date from July 1, 2004, to July 1, 2008, for the exemption from sales and use tax for the purchase of printing materials by advertising businesses when the printed material is distributed outside the Commonwealth. SB 533; CH. 821.

§ 58.1-609.6 amended.
Sales tax exemption for film, video, and audio. Extends the expiration date for the exemption of sales tax for film, video, and audio from July 1, 2004, to July 1, 2009. HB 1262; CH. 101/SB 571; CH. 606.

§ 58.1-615 amended.
Sales and use tax; dealers filing returns. Allows a dealer to deliver sales tax returns to his local commissioner of the revenue or local treasurer instead of the State Tax Commissioner. HB 1241; CH. 567.

§ 58.1-807 amended.
Recordation tax; leases. Provides that the tax on the recordation of leases of oil and gas rights and of outdoor advertising signs owned by a person in the business of outdoor advertising shall equal $25. The bill sets a tax of $50 on the recordation of leases of coal and other mineral rights. Under current law, the tax on the recordation of leases of oil and gas rights and of outdoor advertising signs may not exceed $25, and the tax on the recordation of leases of coal and other mineral rights may not exceed $50.
The bill also provides that the tax on the recordation of a lease of a communications tower or a communications tower site shall be $75. The tax on the recordation of each lease to affix communications equipment or antenna to any such tower or other structure shall be at a rate of $15. SB 399; CH. 974.

§ 58.1-811 amended.
State recordation taxes; exemptions. Exempts the recordation of contracts related to real or personal property to the same extent as deeds are exempt, and exempts conveyances from the United States from the grantor's tax. HB 975; CH. 626.

§§ 58.1-811 and 58.1-3606 amended.
Churches; recordation taxes on incorporated churches or religious bodies. The bill exempts from state and local recordation taxes deeds conveying real estate to an incorporated church or religious body, deeds of trust or mortgages given by an incorporated church or religious body, and deeds conveying real estate from an incorporated church or religious body. SB 73; CH. 492 (effective 1/1/04).

§ 58.1-812 amended; § 58.1-817 added.
Deed recordation fee for open-space preservation. Imposes a $1 fee on every deed admitted to record as of July 1, 2004, in those jurisdictions where open-space easements are held by the Virginia Outdoors Foundation. The bill requires the State Comptroller to distribute on a monthly basis the revenue from such collected fees to the Virginia Outdoors Foundation. The Foundation, established to promote the preservation of open-space lands and to encourage private gifts of money, securities, land or other property to preserve the natural, scenic, historic, scientific, open-space and recreational areas of the Commonwealth, shall hold and administer these funds in accordance with its statutory purpose and powers. HB 549; CH. 990.

§§ 58.1-1000, 58.1-1003 through 58.1-3005, 58.1-1009 through 58.1-1011, 58.1-1013, and 58.1-1014. See § 3.1-336.2; HB 862.

§ 58.1-1017. See § 18.2-511; HB 1123/SB 320.

§ 58.1-1803 amended.
Taxation; collection of delinquent state taxes by local government treasurers. Allows the Department of Taxation to appoint local government treasurers to collect delinquent state taxes in the same manner as they collect delinquent local taxes. HB 924; CH. 546.

§§ 58.1-2201, 58.1-2204, 58.1-2216, 58.1-2237, 58.1-2266, 58.1-2271, and 58.1-2283 amended.
Fuels tax. Makes several technical corrections, adds new civil penalties for persons failing to submit reports and data required under the fuels tax laws, and allows a jeopardy assessment against any licensed distributor or importer who fails to pay the tax due the supplier. HB 17; CH. 340.

§§ 58.1-2402 and 58.1-2425 amended.
Bonds; Virginia Public Building Authority. Authorizes the Virginia Public Building Authority to issue bonds in the amount of $159,300,000 to finance the undertaking, development, acquisition and construction of the first phase of the Statewide Agencies Radio System and establishes a fee at the rate of two percent of the amount charged for daily rental vehicles, which revenues from such fee are dedicated for debt service payments on such bonds. HB 106; CH. 522.

§ 58.1-2501. See § 38.2-100; SB 156.

§ 58.1-2606 amended.
Taxation of certain electric suppliers' real and personal property. Clarifies that localities may tax certain electric suppliers' generating equipment at a rate less than the local real estate tax rate. SB 366; CH. 504.

§ 58.1-2628 amended.
Annual report filing by utilities. Provides that the real and tangible personal property in the Commonwealth leased and operated by each electric supplier and corporation in the business of furnishing heat, light and power by means of electricity includes only those assets directly associated with production facilities and shall not mean real estate or vehicles. The provisions apply for tax years beginning on or after January 1, 2004. SB 120; CH. 661 (effective 4/12/04).

§§ 58.1-2628 and 58.1-2674.1 amended; § 58.1-400.3 added.
Taxation; minimum tax on certain electric suppliers. Requires certain electric suppliers to pay a minimum tax rather than the corporate income tax for any year their minimum tax liability is greater than their corporate income tax liability. The minimum tax is equal to 1.45 percent of the electric supplier's gross receipts minus the state's portion of the electric utility consumption tax billed to consumers. For electric cooperatives that are exempt from federal taxation under § 501 of the Internal Revenue Code, the minimum tax is equal to 1.45 percent of the cooperative's gross receipts from sales to nonmembers minus the consumption tax collected from nonmembers. Also included are provisions dealing with electric suppliers that file consolidated or combined returns. The bill will be effective for taxable years beginning on or after January 1, 2004. SB 681; CH. 716 (effective 4/12/04).

§§ 58.1-3103 and 58.1-3983.1 amended.
Local taxes; appeals. Permits any taxpayer who is aggrieved by the assessment of any tangible personal property tax on airplanes, boats, campers, recreational vehicles or trailers to appeal such assessment to the State Tax Commissioner for a determination of the issue. Either party may appeal the determination of the State Tax Commissioner to the circuit court. The bill requires the Department of Taxation to develop and publish guidelines for such appeals no later than November 1, 2004, and exempts the development of the guidelines from the Administrative Process Act. HB 464; CH. 534 (effective - see bill).

§ 58.1-3172.1 amended.
Remote access fees; treasurers. Allows local treasurers who provide electronic access to public records to charge a fee to cover operational expenses. The fee goes into a special nonreverting local fund. HB 465; CH. 223.

§ 58.1-3211 amended.
Real property tax exemption; elderly and disabled. Changes the financial criteria that localities may use in determining eligibility for real estate exemptions or deferrals for the elderly or disabled by: (i) increasing from $8,500 to $10,000 the amount of income of a nonspouse relative living with an elderly or disabled person; (ii) increasing from $5,000 to $10,000 the maximum amount of assets that an elderly or disabled person needing live-in assistance from a relative and enjoying a real estate tax exemption may transfer without adequate consideration, and still exclude the relative's income for purposes of determining maximum income for the tax exemption; (iii) increasing from $100,000 to $200,000 the maximum financial work cap; and (iv) increasing from $7,500 to $10,000 the maximum amount a locality may exclude from the income of a totally disabled person in calculating maximum income allowed. HB 94; CH. 77.

§ 58.1-3211 amended.
Real property tax exemption; elderly and disabled. Increases from one to 10 the maximum number of acres a locality may exclude in calculating maximum financial worth of the elderly or disabled for real estate tax exemptions. HB 97; CH. 78.

§ 58.1-3211 amended.
Real estate tax exemptions for the elderly and disabled. Adds Charlottesville to certain specified cities and counties that are authorized to have higher caps on total income and total financial worth than other cities and counties in determining real estate tax exemptions for the elderly and disabled. HB 154; CH. 5.

§ 58.1-3211 amended.
Real property tax; exemptions for elderly and handicapped. Permits Goochland County to increase the income and financial worth limitations used to determine whether certain elderly or handicapped persons are eligible for exemption from or deferral of real property tax. HB 403; CH. 6/SB 122; CH. 494.

§ 58.1-3211 amended.
Real property tax; exemptions for elderly and handicapped. Permits Northern Virginia localities to increase the income and financial worth limitations (from $62,000 to $72,000 and from $240,000 to $340,000) used to determine whether certain elderly or handicapped persons are eligible for exemption from or deferral of real property tax. SB 361; CH. 503.

§ 58.1-3274 amended.
Real Estate Assessments. Allows Powhatan County to establish its own real estate assessment department. HB 1461; CH. 576.

§§ 58.1-3400 and 58.1-3651 amended.
Property tax exemptions. Clarifies the process localities must follow to exempt from real or personal property taxes the property of certain charitable and other related organizations. HB 1076; CH. 557 (effective 4/12/04).

§§ 58.1-3505 and 58.1-3506 amended.
Tangible personal property classifications for taxation. Specifies that localities may exempt from personal property, in whole or in part, or set a different tax rate for trailers primarily used by farmers to transport farm animals or other farm products. HB 1030; CH. 556.
§§ 3.1-1111, 30-133, 58.1-3506, 58.1-3506.1, 58.1-3523, 58.1-3524, and 58.1-3912 amended; §§ 58.1-3525 through 58.1-3533, 58.1-3536, and 58.1-3916.01 repealed. Personal property tax relief. Modifies the Personal Property Tax Relief Act of 1998 by setting the total statewide reimbursement amount at $950 million for tax years 2006 and thereafter. Each county's, city's, or town's share of the $950 million for each such tax year shall be determined pro rata based upon the actual payments to such county, city, or town for tax year 2005 as compared to the actual payments to all counties, cities, and towns for tax year 2005. SB 5005; CH. 1, 2004 Special Session.

§ 58.1-3506 amended.
Taxation; special classification of certain motor vehicles for local taxation. Increases from one to two the number of specially classified motor vehicles in households containing both a member and an auxiliary member of a volunteer rescue squad or a volunteer fire department. Such special classifications are used for local taxation of certain personal property. HB 143; CH. 4/SB 349; CH. 591.

§ 58.1-3528 amended.
Personal Property Tax Relief Act of 1998. Permits treasurers not to collect de minimus personal property tax balances on a taxpayer's qualifying vehicle of $5 or less without affecting the locality's reimbursement from the state for the qualifying vehicle. HB 926; CH. 547.

§ 58.1-3713 amended.
Coal and gas road improvement tax; distribution of revenues to local public service authority. Provides that any revenues generated by the coal and gas road improvement tax and designated for local water projects shall be distributed to the local public service authority rather than the local governing body. HB 1426; CH. 871.

§§ 58.1-3713 and 58.1-3713.01 amended.
Coal and gas road improvement tax; water/sewer projects. Adds sewer systems and lines to water projects as an option for localities to use a portion of the coal and gas road improvement tax revenues. The bill also provides that any revenues generated by the coal and gas road improvement tax and designated for local water or sewer projects shall be distributed to the local public service authority rather than the local governing body. SB 642; CH. 893.

§ 58.1-3724. See § 9.1-102; HB 1057.

§ 58.1-3812 amended.
Local telecommunication tax; the Towns of Herndon and Vienna. Authorizes the Towns of Herndon and Vienna to impose the local tax on the purchase of telecommunication service and prohibits Fairfax County from simultaneously imposing such a tax within such towns. Under current law, such towns would have had to impose such tax on or before January 1, 2000, to continue to impose such tax in the manner provided. HB 372; CH. 43.

§ 58.1-3812 amended.
Local consumer utility tax. Allows the local governing body of the Town of Iron Gate to impose the local consumer utility tax on mobile phones by adopting a local ordinance on or after July 1, 2004. While such town ordinance remains in effect, Alleghany County shall not impose the tax within the limits of the town. SB 14; CH. 489.

§ 58.1-3812 amended.
Local consumer utility tax. Allows the local governing bodies of the Towns of Herndon and Vienna to impose the local consumer utility tax on mobile phones by adopting a local ordinance on or after July 1, 2004. Each town may adopt such ordinance. While the town ordinance remains in effect, Fairfax County shall not impose the tax within the limits of the respective town that has adopted the ordinance. SB 316; CH. 172.

§ 58.1-3812 amended.
Local consumer utility tax. Allows the local governing body of the Towns of Vienna and Clifton to impose the local consumer utility tax on mobile phones by adopting a local ordinance on or after July 1, 2004. While the town ordinance remains in effect, Fairfax County shall not impose the tax within the limits of such town. SB 627; CH. 516.

§§ 58.1-3814 and 58.1-3816.2 amended.
Local consumer utility tax; exemption for churches. Broadens the permissive exemption from the consumer utility tax that localities may provide to certain churches or religious bodies. HB 743; CH. 8.

§§ 58.1-3814 and 58.1-3816.2 amended.
Local consumer utility tax; exemption for churches. Allows any county, city or town to exempt from the consumer utility tax utilities consumed on property of churches or nonprofit associations that are exempt from the local property taxes. SB 71; CH. 159.

§ 58.1-3819 amended.
Transient occupancy tax. Authorizes Floyd County to levy a transient occupancy tax at the rate of five percent. Any revenues attributable to the portion of the tax greater than two percent shall be spent for promoting tourism, travel or business that generates tourism or travel in the County. HB 739; CH. 7.

§§ 58.1-3819, 58.1-3822, 58.1-3823, 58.1-3833, and 58.1-3842 amended.
Transient occupancy taxes and food and beverage taxes. Makes technical changes to the transient occupancy taxes and the food and beverage taxes for counties by replacing indirect references to specific counties with the names of the counties. SB 684; CH. 610.

§ 58.1-3823 amended.
Transient occupancy tax. Permits the Counties of Chesterfield, Hanover, and Henrico to impose a transient occupancy tax at the rate of one percent with additional revenues designated and spent for the development and improvement of the Virginia Performing Arts Foundations' facilities in Richmond, for promoting the use of the Richmond Centre, and for promoting tourism, travel or business that generates tourism and travel in the Richmond metropolitan area. HB 741; CH. 50.

§ 58.1-3823 amended.
Transient occupancy tax; additional amount for overnight accommodations in greater Williamsburg area. Allows the Counties of James City and York to impose an additional transient occupancy tax of up to $2 for overnight accommodations. The revenues collected from the additional tax must be used for advertising the Historic Triangle area (City of Williamsburg, Counties of James City and York) as an overnight destination. The additional tax expires January 1, 2008, unless any one of the governing bodies of the City of Williamsburg and the Counties of James City and York fails to adopt an ordinance by August 1, 2004, imposing the tax, in which event the additional tax will expire on such date. Establishes the Williamsburg Area Destination Marketing Committee of the Williamsburg Area Convention and Visitors Bureau to direct such advertising. SB 652; CH. 828.

§ 58.1-3824 added.
Transient occupancy tax; Fairfax County. Provides for an additional two percent transient occupancy tax in Fairfax County beginning July 1, 2004, and ending June 30, 2008, subject to the board of supervisors of the County appropriating the revenues from such tax to a nonprofit convention and visitor's bureau and to the Fairfax County Economic Development Authority. No more than 75 percent of the revenues from such tax shall be designated for and appropriated to the Fairfax County Economic Development Authority to be spent for tourism promotion and no less than 25 percent of the revenues from such tax shall be designated for and appropriated to a nonprofit convention and visitor's bureau located in Fairfax County. HB 1001; CH. 9.

§ 58.1-3824 added.
Transient occupancy tax; Rockbridge County and the Cities of Lexington and Buena Vista. Authorizes an additional two percent transient occupancy tax to be imposed by the governing bodies in the County of Rockbridge and the Cities of Lexington and Buena Vista. Revenues collected from the tax shall be appropriated for the payment of principal and interest on promissory notes executed by the Virginia Horse Center Foundation or the Virginia Equine Center Foundation prior to January 1, 2004, that were part of an agreement for the Rockbridge Industrial Development Authority to issue bonds on behalf of or for improvements at the Virginia Horse Center Foundation, Virginia Equine Center Foundation, or the Virginia Equine Center. The tax may no longer be imposed after the final payment of principal and interest on all such notes. SB 517; CH. 598.

§ 58.1-3916.02 added.
Real property taxes; alternative due dates for Prince William County seniors. Allows Prince William County to provide alternative due dates for payment of real property taxes to taxpayers aged 65 or older, without penalty or interest. HB 928; CH. 548.

§§ 58.1-3965 and 58.1-3970.1. See § 15.2-906; HB 1456.

§ 58.1-3967 amended.
Delinquent real estate taxes; actions to collect; necessary parties. Provides that anyone who acquires an interest in real estate that is the subject of an action to collect delinquent taxes after filing of suit and a lis pendens shall not be deemed a necessary party, but shall be permitted to intervene in the proceedings to file his claim. Failure to file such a claim shall bar any such claim. HB 1453; CH. 645.

§ 58.1-3975 added.
Taxation; nonjudicial sale of tax delinquent property. Allows unimproved real property that is assessed at less than $10,000 with taxes that have been delinquent at least five years and is either less that 4,000 square feet or has been determined by the local zoning administrator to be unsuitable for building to be sold by the local treasurer or other officer responsible for collecting taxes. Notice of the sale must be mailed to the registered owner and anyone having an interest in the property, and notice shall be posted at the circuit courthouse of the locality and on the property if it fronts on a street. HB 925; CH. 100.

§ 58.1-3983.1 amended.
Local business taxes; written opinions of State Tax Commissioner. Authorizes the State Tax Commissioner to issue written opinions regarding machinery and tools tax, business tangible personal property tax, and merchant's capital tax and the administration of such taxes prior to the filing of an appeal. HB 295; CH. 527.

§ 58.1-3994 added.
Local taxes; offers in compromise. Authorizes (i) the commissioner of the revenue or other tax assessment official to compromise and settle certain tax assessments prior to the exhaustion of all administrative and judicial review, upon a determination that there is substantial doubt under applicable law as to the taxpayer's liability; and (ii) the treasurer or other tax collection official to compromise and settle the tax amount due and payable upon a determination that collection of the entire amount is in substantial doubt and the best interests of the locality will be served by such compromise. HB 293; CH. 526.

§ 58.1-3994 added.
Local taxation; effect of application for correction of assessment or appeal upon applications for local permits and licenses. Prohibits localities from denying permits and licenses to persons who have failed to pay taxes, penalties and interest pending correction of an assessment; appeal by locality of an assessment correction; application for correcting or an appeal of a local business tax; or correction or equalization of an assessment of real property. However, localities do not have to issue licenses or permits if the unpaid taxes, penalties and interest would be jeopardized by delay and the issuance of the licenses or permits would prejudice or impede collection efforts. Also, there is no requirement to issue a local vehicle license or a vehicle registration or renewal of registration that is withheld pursuant to § 46.2-752. HB 298; CH. 902.

§§ 58.1-4004, 58.1-4006, 58.1-4007, 58.1-4010, 58.1-4014, and 58.1-4020.1 amended.
Lottery. Modifies several provisions of the Virginia Lottery Law, generally granting to the Department and Director greater latitude and authority in which to operate the lottery. Among the changes: (i) monthly meetings of the Board are reduced to a minimum of quarterly meetings, (ii) flexibility is given to the Board to determine the types of games qualifying as a lottery, (iii) clarification is made that the Department is not subject to the Virginia Public Procurement Act, (iv) theft of a lottery ticket or prize is established as a crime, and (v) certain notice and venue requirements for assignment of lottery prizes are established. HB 1027; CH. 630.

§§ 58.1-4008 and 58.1-4009 amended.
Lottery. Modifies for board members and officers and employees of lottery vendors, the process for criminal background checks, including the taking of fingerprints. HB 1028; CH. 555.