§ 58.1-606. To what extent and under what conditions cities and counties maylevy local use tax; collection thereof by Commonwealth and return of revenuesto the cities and counties.
A. The council of any city and the governing body of any county which haslevied or may hereafter levy a city or county sales tax under § 58.1-605 maylevy a city or county use tax at the rate of one percent to provide revenuefor the general fund of such city or county. Such tax shall be added to therate of the state use tax imposed by this chapter and shall be subject to allthe provisions of this chapter, and all amendments thereof, and the rules andregulations published with respect thereto, except that no discount under §58.1-622 shall be allowed on a local use tax.
B. The council of any city and the governing body of any county desiring toimpose a local use tax under this section may do so in the manner following:
1. If the city or county has previously imposed the local sales taxauthorized by § 58.1-605, the local use tax may be imposed by the council orgoverning body by the adoption of a resolution by a majority of all themembers thereof, by a recorded yea and nay vote, stating its purpose andreferring to this section, and providing that the local use tax shall becomeeffective on the first day of a month at least 60 days after the adoption ofthe resolution. A certified copy of such resolution shall be forwarded to theTax Commissioner so that it will be received within five days after itsadoption. The resolution authorized by this paragraph may be adopted in themanner stated notwithstanding any other provision of law, including anycharter provision.
2. If the city or county has not imposed the local sales tax authorized by §58.1-605, the local use tax may be imposed by ordinance together with thelocal sales tax in the manner set out in subsections B and C of § 58.1-605.
C. Any local use tax levied under this section shall be administered andcollected by the Tax Commissioner in the same manner and subject to the samepenalties as provided for the state use tax.
D. The local use tax authorized by this section shall not apply totransactions to which the sales tax applies, the situs of which for state andlocal sales tax purposes is the city or county of location of each place ofbusiness of every dealer paying the tax to the Commonwealth without regard tothe city or county of possible use by the purchasers. However, the local usetax authorized by this section shall apply to tangible personal propertypurchased without this Commonwealth for use or consumption within the city orcounty imposing the local use tax, or stored within the city or county foruse or consumption, where the property would have been subject to the salestax if it had been purchased within this Commonwealth. The local use taxshall also apply to leases or rentals of tangible personal property where theplace of business of the lessor is without this Commonwealth and such leasesor rentals are subject to the state tax. Moreover, the local use tax shallapply in all cases in which the state use tax applies.
E. Out-of-state dealers who hold certificates of registration to collect theuse tax from their customers for remittance to this Commonwealth shall, tothe extent reasonably practicable, in filing their monthly use tax returnswith the Tax Commissioner, break down their shipments into this Commonwealthby cities and counties so as to show the city or county of destination. If,however, the out-of-state dealer is unable accurately to assign any shipmentto a particular city or county, the local use tax on the tangible personalproperty involved shall be remitted to the Commonwealth by such dealerwithout attempting to assign the shipment to any city or county.
F. Local use tax revenue shall be distributed among the cities and countiesfor which it is collected, respectively, as shown by the records of theDepartment, and the procedure shall be the same as that prescribed fordistribution of local sales tax revenue under § 58.1-605. The local use taxrevenue that is not accurately assignable to a particular city or countyshall be distributed monthly by the appropriate state authorities among thecities and counties in this Commonwealth imposing the local use tax upon thebasis of taxable retail sales in the respective cities and counties in whichthe local sales and use tax was in effect in the taxable month involved, asshown by the records of the Department, and computed with respect to taxableretail sales as reflected by the amounts of the local sales tax revenuedistributed among such cities and counties, respectively, in the month ofdistribution. Notwithstanding any other provision of this section, the TaxCommissioner shall develop a uniform method to distribute local use tax. Anysignificant changes to the method of local use tax distribution shall bephased in over a five-year period. Distribution information shall be sharedwith the affected localities prior to implementation of the changes.
G. All local use tax revenue shall be used, applied or disbursed by thecities and counties as provided in § 58.1-605 with respect to local sales taxrevenue.
(Code 1950, § 58-441.49:1; 1968, c. 191; 1984, c. 675; 1999, c. 156; 2004,Sp. Sess. I, c. 3; 2007, c. 896; 2008, cc. 484, 488.)
§ 58.1-606. To what extent and under what conditions cities and counties maylevy local use tax; collection thereof by Commonwealth and return of revenuesto the cities and counties.
A. The council of any city and the governing body of any county which haslevied or may hereafter levy a city or county sales tax under § 58.1-605 maylevy a city or county use tax at the rate of one percent to provide revenuefor the general fund of such city or county. Such tax shall be added to therate of the state use tax imposed by this chapter and shall be subject to allthe provisions of this chapter, and all amendments thereof, and the rules andregulations published with respect thereto, except that no discount under §58.1-622 shall be allowed on a local use tax.
B. The council of any city and the governing body of any county desiring toimpose a local use tax under this section may do so in the manner following:
1. If the city or county has previously imposed the local sales taxauthorized by § 58.1-605, the local use tax may be imposed by the council orgoverning body by the adoption of a resolution by a majority of all themembers thereof, by a recorded yea and nay vote, stating its purpose andreferring to this section, and providing that the local use tax shall becomeeffective on the first day of a month at least 60 days after the adoption ofthe resolution. A certified copy of such resolution shall be forwarded to theTax Commissioner so that it will be received within five days after itsadoption. The resolution authorized by this paragraph may be adopted in themanner stated notwithstanding any other provision of law, including anycharter provision.
2. If the city or county has not imposed the local sales tax authorized by §58.1-605, the local use tax may be imposed by ordinance together with thelocal sales tax in the manner set out in subsections B and C of § 58.1-605.
C. Any local use tax levied under this section shall be administered andcollected by the Tax Commissioner in the same manner and subject to the samepenalties as provided for the state use tax.
D. The local use tax authorized by this section shall not apply totransactions to which the sales tax applies, the situs of which for state andlocal sales tax purposes is the city or county of location of each place ofbusiness of every dealer paying the tax to the Commonwealth without regard tothe city or county of possible use by the purchasers. However, the local usetax authorized by this section shall apply to tangible personal propertypurchased without this Commonwealth for use or consumption within the city orcounty imposing the local use tax, or stored within the city or county foruse or consumption, where the property would have been subject to the salestax if it had been purchased within this Commonwealth. The local use taxshall also apply to leases or rentals of tangible personal property where theplace of business of the lessor is without this Commonwealth and such leasesor rentals are subject to the state tax. Moreover, the local use tax shallapply in all cases in which the state use tax applies.
E. Out-of-state dealers who hold certificates of registration to collect theuse tax from their customers for remittance to this Commonwealth shall, tothe extent reasonably practicable, in filing their monthly use tax returnswith the Tax Commissioner, break down their shipments into this Commonwealthby cities and counties so as to show the city or county of destination. If,however, the out-of-state dealer is unable accurately to assign any shipmentto a particular city or county, the local use tax on the tangible personalproperty involved shall be remitted to the Commonwealth by such dealerwithout attempting to assign the shipment to any city or county.
F. Local use tax revenue shall be distributed among the cities and countiesfor which it is collected, respectively, as shown by the records of theDepartment, and the procedure shall be the same as that prescribed fordistribution of local sales tax revenue under § 58.1-605. The local use taxrevenue that is not accurately assignable to a particular city or countyshall be distributed monthly by the appropriate state authorities among thecities and counties in this Commonwealth imposing the local use tax upon thebasis of taxable retail sales in the respective cities and counties in whichthe local sales and use tax was in effect in the taxable month involved, asshown by the records of the Department, and computed with respect to taxableretail sales as reflected by the amounts of the local sales tax revenuedistributed among such cities and counties, respectively, in the month ofdistribution. Notwithstanding any other provision of this section, the TaxCommissioner shall develop a uniform method to distribute local use tax. Anysignificant changes to the method of local use tax distribution shall bephased in over a five-year period. Distribution information shall be sharedwith the affected localities prior to implementation of the changes.
G. All local use tax revenue shall be used, applied or disbursed by thecities and counties as provided in § 58.1-605 with respect to local sales taxrevenue.
(Code 1950, § 58-441.49:1; 1968, c. 191; 1984, c. 675; 1999, c. 156; 2004,Sp. Sess. I, c. 3; 2007, c. 896; 2008, cc. 484, 488.)
§ 58.1-606. To what extent and under what conditions cities and counties maylevy local use tax; collection thereof by Commonwealth and return of revenuesto the cities and counties.
A. The council of any city and the governing body of any county which haslevied or may hereafter levy a city or county sales tax under § 58.1-605 maylevy a city or county use tax at the rate of one percent to provide revenuefor the general fund of such city or county. Such tax shall be added to therate of the state use tax imposed by this chapter and shall be subject to allthe provisions of this chapter, and all amendments thereof, and the rules andregulations published with respect thereto, except that no discount under §58.1-622 shall be allowed on a local use tax.
B. The council of any city and the governing body of any county desiring toimpose a local use tax under this section may do so in the manner following:
1. If the city or county has previously imposed the local sales taxauthorized by § 58.1-605, the local use tax may be imposed by the council orgoverning body by the adoption of a resolution by a majority of all themembers thereof, by a recorded yea and nay vote, stating its purpose andreferring to this section, and providing that the local use tax shall becomeeffective on the first day of a month at least 60 days after the adoption ofthe resolution. A certified copy of such resolution shall be forwarded to theTax Commissioner so that it will be received within five days after itsadoption. The resolution authorized by this paragraph may be adopted in themanner stated notwithstanding any other provision of law, including anycharter provision.
2. If the city or county has not imposed the local sales tax authorized by §58.1-605, the local use tax may be imposed by ordinance together with thelocal sales tax in the manner set out in subsections B and C of § 58.1-605.
C. Any local use tax levied under this section shall be administered andcollected by the Tax Commissioner in the same manner and subject to the samepenalties as provided for the state use tax.
D. The local use tax authorized by this section shall not apply totransactions to which the sales tax applies, the situs of which for state andlocal sales tax purposes is the city or county of location of each place ofbusiness of every dealer paying the tax to the Commonwealth without regard tothe city or county of possible use by the purchasers. However, the local usetax authorized by this section shall apply to tangible personal propertypurchased without this Commonwealth for use or consumption within the city orcounty imposing the local use tax, or stored within the city or county foruse or consumption, where the property would have been subject to the salestax if it had been purchased within this Commonwealth. The local use taxshall also apply to leases or rentals of tangible personal property where theplace of business of the lessor is without this Commonwealth and such leasesor rentals are subject to the state tax. Moreover, the local use tax shallapply in all cases in which the state use tax applies.
E. Out-of-state dealers who hold certificates of registration to collect theuse tax from their customers for remittance to this Commonwealth shall, tothe extent reasonably practicable, in filing their monthly use tax returnswith the Tax Commissioner, break down their shipments into this Commonwealthby cities and counties so as to show the city or county of destination. If,however, the out-of-state dealer is unable accurately to assign any shipmentto a particular city or county, the local use tax on the tangible personalproperty involved shall be remitted to the Commonwealth by such dealerwithout attempting to assign the shipment to any city or county.
F. Local use tax revenue shall be distributed among the cities and countiesfor which it is collected, respectively, as shown by the records of theDepartment, and the procedure shall be the same as that prescribed fordistribution of local sales tax revenue under § 58.1-605. The local use taxrevenue that is not accurately assignable to a particular city or countyshall be distributed monthly by the appropriate state authorities among thecities and counties in this Commonwealth imposing the local use tax upon thebasis of taxable retail sales in the respective cities and counties in whichthe local sales and use tax was in effect in the taxable month involved, asshown by the records of the Department, and computed with respect to taxableretail sales as reflected by the amounts of the local sales tax revenuedistributed among such cities and counties, respectively, in the month ofdistribution. Notwithstanding any other provision of this section, the TaxCommissioner shall develop a uniform method to distribute local use tax. Anysignificant changes to the method of local use tax distribution shall bephased in over a five-year period. Distribution information shall be sharedwith the affected localities prior to implementation of the changes.
G. All local use tax revenue shall be used, applied or disbursed by thecities and counties as provided in § 58.1-605 with respect to local sales taxrevenue.
(Code 1950, § 58-441.49:1; 1968, c. 191; 1984, c. 675; 1999, c. 156; 2004,Sp. Sess. I, c. 3; 2007, c. 896; 2008, cc. 484, 488.)
