{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-602.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-602.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-602.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-602.html"}],"law_id":78097,"edition_id":1,"section_id":78097,"structure_id":12899,"section_number":"58.1-602","catch_line":"Definitions","history":"Code 1950, \u00a7\u00a7 58-441.2, 58-441.3, 58-441.6; 1966, c. 151; 1972, c. 680; 1973, c. 313; 1974, c. 431; 1976, cc. 375, 489, 666, 712, 764, 770; 1977, cc. 247, 504; 1978, cc. 50, 82, 181, 505, 656, 665, 706, 784, 819; 1979, cc. 148, 205, 555, 556, 557, 558, 561, 562, 564, 572, 575; 1980, cc. 81, 610, 611, 617, 618, 621, 631, 753, 756; 1981, cc. 398, 400, 405, 409, 416, 599; 1982, cc. 533, 546, 547, 636, 649; 1983, cc. 100, 184, 384, 414, 557, 565, 599; 1984, cc. 419, 522, 675, 683, 690, 693; 1985, c. 473; 1986, c. 22; 1988, c. 899; 1989, cc. 581, 739; 1995, c. 96; 1999, cc. 138, 187, 723, 981; 2000, c. 425; 2004, c. 60; 2005, cc. 121, 122, 355; 2006, cc. 519, 541, 568, 602; 2007, c. 751; 2013, cc. 766, 783; 2014, c. 359; 2015, c. 252; 2017, c. 104; 2018, cc. 838, 840; 2019, cc. 815, 816, 854; 2020, cc. 327, 427, 428, 705, 708, 865; 2021, Sp. Sess. I, c. 383; 2022, cc. 7, 154, 434, 435, 640.","full_text":"As used in this chapter, unless the context clearly shows otherwise:\n\t\t“Accommodations” means any room or rooms, lodgings, or accommodations in any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, short-term rental, or any other place in which rooms, lodging, space, or accommodations are regularly furnished to transients for a consideration. “Accommodations” does not include rooms or space offered by a person in the business of providing conference rooms, meeting space, or event space if the person does not also offer rooms available for overnight sleeping.\n\t\t“Accommodations fee” means the room charge less the discount room charge, if any, provided that the accommodations fee shall not be less than $0.\n\t\t“Accommodations intermediary” means any person other than an accommodations provider that (i) facilitates the sale of an accommodation and (ii) either (a) charges a room charge to the customer, and charges an accommodations fee to the customer, which fee it retains as compensation for facilitating the sale; (b) collects a room charge from the customer; or (c) charges a fee, other than an accommodations fee, to the customer, which fee it retains as compensation for facilitating the sale. For purposes of this definition, “facilitates the sale” includes brokering, coordinating, or in any other way arranging for the purchase of the right to use accommodations via a transaction directly, including via one or more payment processors, between a customer and an accommodations provider.\n\t\t“Accommodations intermediary” does not include a person:\n\n1\n\nIf the accommodations are provided by an accommodations provider operating under a trademark, trade name, or service mark belonging to such person;2\n\nWho facilitates the sale of an accommodation if (i) the price paid by the customer to such person is equal to the price paid by such person to the accommodations provider for the use of the accommodations and (ii) the only compensation received by such person for facilitating the sale of the accommodation is a commission paid from the accommodations provider to such person; or3\n\nWho is licensed as a real estate licensee pursuant to Article 1 (§ 54.1-2100 et seq.) of Chapter 21 of Title 54.1, when acting within the scope of such license.\n\t\t\t“Accommodations provider” means any person that furnishes accommodations to the general public for compensation. The term “furnishes” includes the sale of use or possession or the sale of the right to use or possess.\n\t\t\t“Advertising” means the planning, creating, or placing of advertising in newspapers, magazines, billboards, broadcasting and other media, including, without limitation, the providing of concept, writing, graphic design, mechanical art, photography and production supervision. Any person providing advertising as defined in this section shall be deemed to be the user or consumer of all tangible personal property purchased for use in such advertising.\n\t\t\t“Affiliate” means the same as such term is defined in § 58.1-439.18.\n\t\t\t“Amplification, transmission, distribution, and network equipment” means production, distribution, and other equipment used to provide Internet-access services, such as computer and communications equipment and software used for storing, processing, and retrieving end-user subscribers’ requests. A “network” includes modems, fiber optic cables, coaxial cables, radio equipment, routing equipment, switching equipment, a cable modem termination system, associated software, transmitters, power equipment, storage devices, servers, multiplexers, and antennas, which network is used to provide Internet service, regardless of whether the provider of such service is also a telephone common carrier or whether such network is also used to provide services other than Internet services.\n\t\t\t“Business” includes any activity engaged in by any person, or caused to be engaged in by him, with the object of gain, benefit or advantage, either directly or indirectly.\n\t\t\t“Cost price” means the actual cost of an item or article of tangible personal property computed in the same manner as the sales price as defined in this section without any deductions therefrom on account of the cost of materials used, labor, or service costs, transportation charges, or any expenses whatsoever.\n\t\t\t“Custom program” means a computer program that is specifically designed and developed only for one customer. The combining of two or more prewritten programs does not constitute a custom computer program. A prewritten program that is modified to any degree remains a prewritten program and does not become custom.\n\t\t\t“Discount room charge” means the full amount charged by the accommodations provider to the accommodations intermediary, or an affiliate thereof, for furnishing the accommodations.\n\t\t\t“Distribution” means the transfer or delivery of tangible personal property for use, consumption, or storage by the distributee, and the use, consumption, or storage of tangible personal property by a person that has processed, manufactured, refined, or converted such property, but does not include the transfer or delivery of tangible personal property for resale or any use, consumption, or storage otherwise exempt under this chapter.\n\t\t\t“Gross proceeds” means the charges made or voluntary contributions received for the lease or rental of tangible personal property or for furnishing services, computed with the same deductions, where applicable, as for sales price as defined in this section over the term of the lease, rental, service, or use, but not less frequently than monthly. “Gross proceeds” does not include finance charges, carrying charges, service charges, or interest from credit extended on the lease or rental of tangible personal property under conditional lease or rental contracts or other conditional contracts providing for the deferred payments of the lease or rental price.\n\t\t\t“Gross sales” means the sum total of all retail sales of tangible personal property or services as defined in this chapter, without any deduction, except as provided in this chapter. “Gross sales” does not include the federal retailers’ excise tax or the federal diesel fuel excise tax imposed in § 4091 of the Internal Revenue Code if the excise tax is billed to the purchaser separately from the selling price of the article, or the Virginia retail sales or use tax, or any sales or use tax imposed by any county or city under § 58.1-605 or 58.1-606.\n\t\t\t“Import” and “imported” are words applicable to tangible personal property imported into the Commonwealth from other states as well as from foreign countries, and “export” and “exported” are words applicable to tangible personal property exported from the Commonwealth to other states as well as to foreign countries.\n\t\t\t“In this Commonwealth” or “in the Commonwealth” means within the limits of the Commonwealth of Virginia and includes all territory within these limits owned by or ceded to the United States of America.\n\t\t\t“Integrated process,” when used in relation to semiconductor manufacturing, means a process that begins with the research or development of semiconductor products, equipment, or processes, includes the handling and storage of raw materials at a plant site, and continues to the point that the product is packaged for final sale and either shipped or conveyed to a warehouse. Without limiting the foregoing, any semiconductor equipment, fuel, power, energy, supplies, or other tangible personal property shall be deemed used as part of the integrated process if its use contributes, before, during, or after production, to higher product quality, production yields, or process efficiencies. Except as otherwise provided by law, “integrated process” does not mean general maintenance or administration.\n\t\t\t“Internet” means, collectively, the myriad of computer and telecommunications facilities, which comprise the interconnected worldwide network of computer networks that employ the Transmission Control Protocol\/Internet Protocol, or any predecessor or successor to such protocol, to communicate information of all kinds by wire or radio.\n\t\t\t“Internet service” means a service that enables users to access content, information, and other services offered over the Internet.\n\t\t\t“Lease or rental” means the leasing or renting of tangible personal property and the possession or use thereof by the lessee or renter for a consideration, without transfer of the title to such property.\n\t\t\t“Manufacturing, processing, refining, or conversion” includes the production line of the plant starting with the handling and storage of raw materials at the plant site and continuing through the last step of production where the product is finished or completed for sale and conveyed to a warehouse at the production site, and also includes equipment and supplies used for production line testing and quality control. “Manufacturing” also includes the necessary ancillary activities of newspaper and magazine printing when such activities are performed by the publisher of any newspaper or magazine for sale daily or regularly at average intervals not exceeding three months.\n\t\t\tThe determination of whether any manufacturing, mining, processing, refining or conversion activity is industrial in nature shall be made without regard to plant size, existence or size of finished product inventory, degree of mechanization, amount of capital investment, number of employees or other factors relating principally to the size of the business. Further, “industrial in nature” includes, but is not limited to, those businesses classified in codes 10 through 14 and 20 through 39 published in the Standard Industrial Classification Manual for 1972 and any supplements issued thereafter.\n\t\t\t“Modular building” means, but is not limited to, single and multifamily houses, apartment units, commercial buildings, and permanent additions thereof, comprised of one or more sections that are intended to become real property, primarily constructed at a location other than the permanent site, built to comply with the Virginia Industrialized Building Safety Law (§ 36-70 et seq.) as regulated by the Virginia Department of Housing and Community Development, and shipped with most permanent components in place to the site of final assembly. For purposes of this chapter, “modular building” does not include a mobile office as defined in § 58.1-2401 or any manufactured building subject to and certified under the provisions of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. § 5401 et seq.).\n\t\t\t“Modular building manufacturer” means a person that owns or operates a manufacturing facility and is engaged in the fabrication, construction and assembling of building supplies and materials into modular buildings, as defined in this section, at a location other than at the site where the modular building will be assembled on the permanent foundation and may or may not be engaged in the process of affixing the modules to the foundation at the permanent site.\n\t\t\t“Modular building retailer” means any person that purchases or acquires a modular building from a modular building manufacturer, or from another person, for subsequent sale to a customer residing within or outside of the Commonwealth, with or without installation of the modular building to the foundation at the permanent site.\n\t\t\t“Motor vehicle” means a “motor vehicle” as defined in § 58.1-2401, taxable under the provisions of the Virginia Motor Vehicles Sales and Use Tax Act (§ 58.1-2400 et seq.) and upon the sale of which all applicable motor vehicle sales and use taxes have been paid.\n\t\t\t“Occasional sale” means a sale of tangible personal property not held or used by a seller in the course of an activity for which it is required to hold a certificate of registration, including the sale or exchange of all or substantially all the assets of any business and the reorganization or liquidation of any business, provided that such sale or exchange is not one of a series of sales and exchanges sufficient in number, scope and character to constitute an activity requiring the holding of a certificate of registration.\n\t\t\t“Open video system” means an open video system authorized pursuant to 47 U.S.C. § 573 and, for purposes of this chapter only, also includes Internet service regardless of whether the provider of such service is also a telephone common carrier.\n\t\t\t“Person” includes any individual, firm, copartnership, cooperative, nonprofit membership corporation, joint venture, association, corporation, estate, trust, business trust, trustee in bankruptcy, receiver, auctioneer, syndicate, assignee, club, society, or other group or combination acting as a unit, body politic or political subdivision, whether public or private, or quasi-public, and the plural of “person” means the same as the singular.\n\t\t\t“Prewritten program” means a computer program that is prepared, held or existing for general or repeated sale or lease, including a computer program developed for in-house use and subsequently sold or leased to unrelated third parties.\n\t\t\t“Qualifying locality” means Charlotte County, Gloucester County, Halifax County, Henry County, Mecklenburg County, Northampton County, Patrick County, Pittsylvania County, or the City of Danville.\n\t\t\t“Railroad rolling stock” means locomotives, of whatever motive power, autocars, railroad cars of every kind and description, and all other equipment determined by the Tax Commissioner to constitute railroad rolling stock.\n\t\t\t“Remote seller” means any dealer deemed to have sufficient activity within the Commonwealth to require registration under § 58.1-613 under the criteria specified in subdivision C 10 or 11 of § 58.1-612 or any software provider acting on behalf of such dealer.\n\t\t\t“Retail sale” or a “sale at retail” means a sale to any person for any purpose other than for resale in the form of tangible personal property or services taxable under this chapter, and shall include any such transaction as the Tax Commissioner upon investigation finds to be in lieu of a sale. All sales for resale must be made in strict compliance with regulations applicable to this chapter. Any dealer making a sale for resale which is not in strict compliance with such regulations shall be personally liable for payment of the tax.\n\t\t\tThe terms “retail sale” and a “sale at retail” specifically include the following: (i) the sale or charges for any accommodations furnished to transients for less than 90 continuous days; (ii) sales of tangible personal property to persons for resale when because of the operation of the business, or its very nature, or the lack of a place of business in which to display a certificate of registration, or the lack of a place of business in which to keep records, or the lack of adequate records, or because such persons are minors or transients, or because such persons are engaged in essentially service businesses, or for any other reason there is likelihood that the Commonwealth will lose tax funds due to the difficulty of policing such business operations; (iii) the separately stated charge made for automotive refinish repair materials that are permanently applied to or affixed to a motor vehicle during its repair; and (iv) the separately stated charge for equipment available for lease or purchase by a provider of satellite television programming to the customer of such programming. Equipment sold to a provider of satellite television programming for subsequent lease or purchase by the customer of such programming shall be deemed a sale for resale. The Tax Commissioner is authorized to promulgate regulations requiring vendors of or sellers to such persons to collect the tax imposed by this chapter on the cost price of such tangible personal property to such persons and may refuse to issue certificates of registration to such persons. The terms “retail sale” and a “sale at retail” also specifically include the separately stated charge made for supplies used during automotive repairs whether or not there is transfer of title or possession of the supplies and whether or not the supplies are attached to the automobile. The purchase of such supplies by an automotive repairer for sale to the customer of such repair services shall be deemed a sale for resale.\n\t\t\tThe term “transient” does not include a purchaser of camping memberships, time-shares, condominiums, or other similar contracts or interests that permit the use of, or constitute an interest in, real estate, however created or sold and whether registered with the Commonwealth or not. Further, a purchaser of a right or license which entitles the purchaser to use the amenities and facilities of a specific real estate project on an ongoing basis throughout its term shall not be deemed a transient, provided, however, that the term or time period involved is for seven years or more.\n\t\t\tThe terms “retail sale” and “sale at retail” do not include a transfer of title to tangible personal property after its use as tools, tooling, machinery or equipment, including dies, molds, and patterns, if (i) at the time of purchase, the purchaser is obligated, under the terms of a written contract, to make the transfer and (ii) the transfer is made for the same or a greater consideration to the person for whom the purchaser manufactures goods.\n\t\t\t“Retailer” means every person engaged in the business of making sales at retail, or for distribution, use, consumption, or storage to be used or consumed in the Commonwealth.\n\t\t\t“Room charge” means the full retail price charged to the customer for the use of the accommodations before taxes. “Room charge” includes any fee charged to the customer and retained as compensation for facilitating the sale, whether described as an accommodations fee, facilitation fee, or any other name. The room charge shall be determined in accordance with 23VAC10-210-730 and the related rulings of the Department on the same.\n\t\t\t“Sale” means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property and any rendition of a taxable service for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication, and the furnishing, preparing, or serving for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing, or serving such tangible personal property. A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price shall be deemed a sale.\n\t\t\t“Sales price” means the total amount for which tangible personal property or services are sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser, consumer, or lessee by the dealer, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, losses or any other expenses whatsoever. “Sales price” does not include (i) any cash discount allowed and taken; (ii) finance charges, carrying charges, service charges or interest from credit extended on sales of tangible personal property under conditional sale contracts or other conditional contracts providing for deferred payments of the purchase price; (iii) separately stated local property taxes collected; (iv) that portion of the amount paid by the purchaser as a discretionary gratuity added to the price of a meal; or (v) that portion of the amount paid by the purchaser as a mandatory gratuity or service charge added by a restaurant to the price of a meal, but only to the extent that such mandatory gratuity or service charge does not exceed 20 percent of the price of the meal. Where used articles are taken in trade, or in a series of trades as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference between the sales price of the new or used articles and the credit for the used articles.\n\t\t\t“Semiconductor cleanrooms” means the integrated systems, fixtures, piping, partitions, flooring, lighting, equipment, and all other property used to reduce contamination or to control airflow, temperature, humidity, vibration, or other environmental conditions required for the integrated process of semiconductor manufacturing.\n\t\t\t“Semiconductor equipment” means (i) machinery or tools or repair parts or replacements thereof; (ii) the related accessories, components, pedestals, bases, or foundations used in connection with the operation of the equipment, without regard to the proximity to the equipment, the method of attachment, or whether the equipment or accessories are affixed to the realty; (iii) semiconductor wafers and other property or supplies used to install, test, calibrate or recalibrate, characterize, condition, measure, or maintain the equipment and settings thereof; and (iv) equipment and supplies used for quality control testing of product, materials, equipment, or processes; or the measurement of equipment performance or production parameters regardless of where or when the quality control, testing, or measuring activity takes place, how the activity affects the operation of equipment, or whether the equipment and supplies come into contact with the product.\n\t\t\t“Short-term rental” means the same as such term is defined in § 15.2-983.\n\t\t\t“Storage” means any keeping or retention of tangible personal property for use, consumption or distribution in the Commonwealth, or for any purpose other than sale at retail in the regular course of business.\n\t\t\t“Tangible personal property” means personal property that may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses. “Tangible personal property” does not include stocks, bonds, notes, insurance or other obligations or securities. “Tangible personal property” includes (i) telephone calling cards upon their initial sale, which shall be exempt from all other state and local utility taxes, and (ii) manufactured signs.\n\t\t\t“Use” means the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business. “Use” does not include the exercise of any right or power, including use, distribution, or storage, over any tangible personal property sold to a nonresident donor for delivery outside of the Commonwealth to a nonresident recipient pursuant to an order placed by the donor from outside the Commonwealth via mail or telephone. “Use” does not include any sale determined to be a gift transaction, subject to tax under § 58.1-604.6.\n\t\t\t“Use tax” refers to the tax imposed upon the use, consumption, distribution, and storage as defined in this section.\n\t\t\t“Used directly,” when used in relation to manufacturing, processing, refining, or conversion, refers to those activities that are an integral part of the production of a product, including all steps of an integrated manufacturing or mining process, but not including ancillary activities such as general maintenance or administration. When used in relation to mining, “used directly” refers to the activities specified in this definition and, in addition, any reclamation activity of the land previously mined by the mining company required by state or federal law.\n\t\t\t“Video programmer” means a person that provides video programming to end-user subscribers.\n\t\t\t“Video programming” means video and\/or information programming provided by or generally considered comparable to programming provided by a cable operator, including, but not limited to, Internet service.","order_by":null,"text":{"0":{"id":279986,"text":"As used in this chapter, unless the context clearly shows otherwise:\n\t\t“Accommodations” means any room or rooms, lodgings, or accommodations in any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, short-term rental, or any other place in which rooms, lodging, space, or accommodations are regularly furnished to transients for a consideration. “Accommodations” does not include rooms or space offered by a person in the business of providing conference rooms, meeting space, or event space if the person does not also offer rooms available for overnight sleeping.\n\t\t“Accommodations fee” means the room charge less the discount room charge, if any, provided that the accommodations fee shall not be less than $0.\n\t\t“Accommodations intermediary” means any person other than an accommodations provider that (i) facilitates the sale of an accommodation and (ii) either (a) charges a room charge to the customer, and charges an accommodations fee to the customer, which fee it retains as compensation for facilitating the sale; (b) collects a room charge from the customer; or (c) charges a fee, other than an accommodations fee, to the customer, which fee it retains as compensation for facilitating the sale. For purposes of this definition, “facilitates the sale” includes brokering, coordinating, or in any other way arranging for the purchase of the right to use accommodations via a transaction directly, including via one or more payment processors, between a customer and an accommodations provider.\n\t\t“Accommodations intermediary” does not include a person:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":279987,"text":"If the accommodations are provided by an accommodations provider operating under a trademark, trade name, or service mark belonging to such person;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":279988,"text":"Who facilitates the sale of an accommodation if (i) the price paid by the customer to such person is equal to the price paid by such person to the accommodations provider for the use of the accommodations and (ii) the only compensation received by such person for facilitating the sale of the accommodation is a commission paid from the accommodations provider to such person; or","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":279989,"text":"Who is licensed as a real estate licensee pursuant to Article 1 (§ 54.1-2100 et seq.) of Chapter 21 of Title 54.1, when acting within the scope of such license.\n\t\t\t“Accommodations provider” means any person that furnishes accommodations to the general public for compensation. The term “furnishes” includes the sale of use or possession or the sale of the right to use or possess.\n\t\t\t“Advertising” means the planning, creating, or placing of advertising in newspapers, magazines, billboards, broadcasting and other media, including, without limitation, the providing of concept, writing, graphic design, mechanical art, photography and production supervision. Any person providing advertising as defined in this section shall be deemed to be the user or consumer of all tangible personal property purchased for use in such advertising.\n\t\t\t“Affiliate” means the same as such term is defined in § 58.1-439.18.\n\t\t\t“Amplification, transmission, distribution, and network equipment” means production, distribution, and other equipment used to provide Internet-access services, such as computer and communications equipment and software used for storing, processing, and retrieving end-user subscribers’ requests. A “network” includes modems, fiber optic cables, coaxial cables, radio equipment, routing equipment, switching equipment, a cable modem termination system, associated software, transmitters, power equipment, storage devices, servers, multiplexers, and antennas, which network is used to provide Internet service, regardless of whether the provider of such service is also a telephone common carrier or whether such network is also used to provide services other than Internet services.\n\t\t\t“Business” includes any activity engaged in by any person, or caused to be engaged in by him, with the object of gain, benefit or advantage, either directly or indirectly.\n\t\t\t“Cost price” means the actual cost of an item or article of tangible personal property computed in the same manner as the sales price as defined in this section without any deductions therefrom on account of the cost of materials used, labor, or service costs, transportation charges, or any expenses whatsoever.\n\t\t\t“Custom program” means a computer program that is specifically designed and developed only for one customer. The combining of two or more prewritten programs does not constitute a custom computer program. A prewritten program that is modified to any degree remains a prewritten program and does not become custom.\n\t\t\t“Discount room charge” means the full amount charged by the accommodations provider to the accommodations intermediary, or an affiliate thereof, for furnishing the accommodations.\n\t\t\t“Distribution” means the transfer or delivery of tangible personal property for use, consumption, or storage by the distributee, and the use, consumption, or storage of tangible personal property by a person that has processed, manufactured, refined, or converted such property, but does not include the transfer or delivery of tangible personal property for resale or any use, consumption, or storage otherwise exempt under this chapter.\n\t\t\t“Gross proceeds” means the charges made or voluntary contributions received for the lease or rental of tangible personal property or for furnishing services, computed with the same deductions, where applicable, as for sales price as defined in this section over the term of the lease, rental, service, or use, but not less frequently than monthly. “Gross proceeds” does not include finance charges, carrying charges, service charges, or interest from credit extended on the lease or rental of tangible personal property under conditional lease or rental contracts or other conditional contracts providing for the deferred payments of the lease or rental price.\n\t\t\t“Gross sales” means the sum total of all retail sales of tangible personal property or services as defined in this chapter, without any deduction, except as provided in this chapter. “Gross sales” does not include the federal retailers’ excise tax or the federal diesel fuel excise tax imposed in § 4091 of the Internal Revenue Code if the excise tax is billed to the purchaser separately from the selling price of the article, or the Virginia retail sales or use tax, or any sales or use tax imposed by any county or city under § 58.1-605 or 58.1-606.\n\t\t\t“Import” and “imported” are words applicable to tangible personal property imported into the Commonwealth from other states as well as from foreign countries, and “export” and “exported” are words applicable to tangible personal property exported from the Commonwealth to other states as well as to foreign countries.\n\t\t\t“In this Commonwealth” or “in the Commonwealth” means within the limits of the Commonwealth of Virginia and includes all territory within these limits owned by or ceded to the United States of America.\n\t\t\t“Integrated process,” when used in relation to semiconductor manufacturing, means a process that begins with the research or development of semiconductor products, equipment, or processes, includes the handling and storage of raw materials at a plant site, and continues to the point that the product is packaged for final sale and either shipped or conveyed to a warehouse. Without limiting the foregoing, any semiconductor equipment, fuel, power, energy, supplies, or other tangible personal property shall be deemed used as part of the integrated process if its use contributes, before, during, or after production, to higher product quality, production yields, or process efficiencies. Except as otherwise provided by law, “integrated process” does not mean general maintenance or administration.\n\t\t\t“Internet” means, collectively, the myriad of computer and telecommunications facilities, which comprise the interconnected worldwide network of computer networks that employ the Transmission Control Protocol\/Internet Protocol, or any predecessor or successor to such protocol, to communicate information of all kinds by wire or radio.\n\t\t\t“Internet service” means a service that enables users to access content, information, and other services offered over the Internet.\n\t\t\t“Lease or rental” means the leasing or renting of tangible personal property and the possession or use thereof by the lessee or renter for a consideration, without transfer of the title to such property.\n\t\t\t“Manufacturing, processing, refining, or conversion” includes the production line of the plant starting with the handling and storage of raw materials at the plant site and continuing through the last step of production where the product is finished or completed for sale and conveyed to a warehouse at the production site, and also includes equipment and supplies used for production line testing and quality control. “Manufacturing” also includes the necessary ancillary activities of newspaper and magazine printing when such activities are performed by the publisher of any newspaper or magazine for sale daily or regularly at average intervals not exceeding three months.\n\t\t\tThe determination of whether any manufacturing, mining, processing, refining or conversion activity is industrial in nature shall be made without regard to plant size, existence or size of finished product inventory, degree of mechanization, amount of capital investment, number of employees or other factors relating principally to the size of the business. Further, “industrial in nature” includes, but is not limited to, those businesses classified in codes 10 through 14 and 20 through 39 published in the Standard Industrial Classification Manual for 1972 and any supplements issued thereafter.\n\t\t\t“Modular building” means, but is not limited to, single and multifamily houses, apartment units, commercial buildings, and permanent additions thereof, comprised of one or more sections that are intended to become real property, primarily constructed at a location other than the permanent site, built to comply with the Virginia Industrialized Building Safety Law (§ 36-70 et seq.) as regulated by the Virginia Department of Housing and Community Development, and shipped with most permanent components in place to the site of final assembly. For purposes of this chapter, “modular building” does not include a mobile office as defined in § 58.1-2401 or any manufactured building subject to and certified under the provisions of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. § 5401 et seq.).\n\t\t\t“Modular building manufacturer” means a person that owns or operates a manufacturing facility and is engaged in the fabrication, construction and assembling of building supplies and materials into modular buildings, as defined in this section, at a location other than at the site where the modular building will be assembled on the permanent foundation and may or may not be engaged in the process of affixing the modules to the foundation at the permanent site.\n\t\t\t“Modular building retailer” means any person that purchases or acquires a modular building from a modular building manufacturer, or from another person, for subsequent sale to a customer residing within or outside of the Commonwealth, with or without installation of the modular building to the foundation at the permanent site.\n\t\t\t“Motor vehicle” means a “motor vehicle” as defined in § 58.1-2401, taxable under the provisions of the Virginia Motor Vehicles Sales and Use Tax Act (§ 58.1-2400 et seq.) and upon the sale of which all applicable motor vehicle sales and use taxes have been paid.\n\t\t\t“Occasional sale” means a sale of tangible personal property not held or used by a seller in the course of an activity for which it is required to hold a certificate of registration, including the sale or exchange of all or substantially all the assets of any business and the reorganization or liquidation of any business, provided that such sale or exchange is not one of a series of sales and exchanges sufficient in number, scope and character to constitute an activity requiring the holding of a certificate of registration.\n\t\t\t“Open video system” means an open video system authorized pursuant to 47 U.S.C. § 573 and, for purposes of this chapter only, also includes Internet service regardless of whether the provider of such service is also a telephone common carrier.\n\t\t\t“Person” includes any individual, firm, copartnership, cooperative, nonprofit membership corporation, joint venture, association, corporation, estate, trust, business trust, trustee in bankruptcy, receiver, auctioneer, syndicate, assignee, club, society, or other group or combination acting as a unit, body politic or political subdivision, whether public or private, or quasi-public, and the plural of “person” means the same as the singular.\n\t\t\t“Prewritten program” means a computer program that is prepared, held or existing for general or repeated sale or lease, including a computer program developed for in-house use and subsequently sold or leased to unrelated third parties.\n\t\t\t“Qualifying locality” means Charlotte County, Gloucester County, Halifax County, Henry County, Mecklenburg County, Northampton County, Patrick County, Pittsylvania County, or the City of Danville.\n\t\t\t“Railroad rolling stock” means locomotives, of whatever motive power, autocars, railroad cars of every kind and description, and all other equipment determined by the Tax Commissioner to constitute railroad rolling stock.\n\t\t\t“Remote seller” means any dealer deemed to have sufficient activity within the Commonwealth to require registration under § 58.1-613 under the criteria specified in subdivision C 10 or 11 of § 58.1-612 or any software provider acting on behalf of such dealer.\n\t\t\t“Retail sale” or a “sale at retail” means a sale to any person for any purpose other than for resale in the form of tangible personal property or services taxable under this chapter, and shall include any such transaction as the Tax Commissioner upon investigation finds to be in lieu of a sale. All sales for resale must be made in strict compliance with regulations applicable to this chapter. Any dealer making a sale for resale which is not in strict compliance with such regulations shall be personally liable for payment of the tax.\n\t\t\tThe terms “retail sale” and a “sale at retail” specifically include the following: (i) the sale or charges for any accommodations furnished to transients for less than 90 continuous days; (ii) sales of tangible personal property to persons for resale when because of the operation of the business, or its very nature, or the lack of a place of business in which to display a certificate of registration, or the lack of a place of business in which to keep records, or the lack of adequate records, or because such persons are minors or transients, or because such persons are engaged in essentially service businesses, or for any other reason there is likelihood that the Commonwealth will lose tax funds due to the difficulty of policing such business operations; (iii) the separately stated charge made for automotive refinish repair materials that are permanently applied to or affixed to a motor vehicle during its repair; and (iv) the separately stated charge for equipment available for lease or purchase by a provider of satellite television programming to the customer of such programming. Equipment sold to a provider of satellite television programming for subsequent lease or purchase by the customer of such programming shall be deemed a sale for resale. The Tax Commissioner is authorized to promulgate regulations requiring vendors of or sellers to such persons to collect the tax imposed by this chapter on the cost price of such tangible personal property to such persons and may refuse to issue certificates of registration to such persons. The terms “retail sale” and a “sale at retail” also specifically include the separately stated charge made for supplies used during automotive repairs whether or not there is transfer of title or possession of the supplies and whether or not the supplies are attached to the automobile. The purchase of such supplies by an automotive repairer for sale to the customer of such repair services shall be deemed a sale for resale.\n\t\t\tThe term “transient” does not include a purchaser of camping memberships, time-shares, condominiums, or other similar contracts or interests that permit the use of, or constitute an interest in, real estate, however created or sold and whether registered with the Commonwealth or not. Further, a purchaser of a right or license which entitles the purchaser to use the amenities and facilities of a specific real estate project on an ongoing basis throughout its term shall not be deemed a transient, provided, however, that the term or time period involved is for seven years or more.\n\t\t\tThe terms “retail sale” and “sale at retail” do not include a transfer of title to tangible personal property after its use as tools, tooling, machinery or equipment, including dies, molds, and patterns, if (i) at the time of purchase, the purchaser is obligated, under the terms of a written contract, to make the transfer and (ii) the transfer is made for the same or a greater consideration to the person for whom the purchaser manufactures goods.\n\t\t\t“Retailer” means every person engaged in the business of making sales at retail, or for distribution, use, consumption, or storage to be used or consumed in the Commonwealth.\n\t\t\t“Room charge” means the full retail price charged to the customer for the use of the accommodations before taxes. “Room charge” includes any fee charged to the customer and retained as compensation for facilitating the sale, whether described as an accommodations fee, facilitation fee, or any other name. The room charge shall be determined in accordance with 23VAC10-210-730 and the related rulings of the Department on the same.\n\t\t\t“Sale” means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property and any rendition of a taxable service for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication, and the furnishing, preparing, or serving for a consideration of any tangible personal property consumed on the premises of the person furnishing, preparing, or serving such tangible personal property. A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price shall be deemed a sale.\n\t\t\t“Sales price” means the total amount for which tangible personal property or services are sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser, consumer, or lessee by the dealer, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, losses or any other expenses whatsoever. “Sales price” does not include (i) any cash discount allowed and taken; (ii) finance charges, carrying charges, service charges or interest from credit extended on sales of tangible personal property under conditional sale contracts or other conditional contracts providing for deferred payments of the purchase price; (iii) separately stated local property taxes collected; (iv) that portion of the amount paid by the purchaser as a discretionary gratuity added to the price of a meal; or (v) that portion of the amount paid by the purchaser as a mandatory gratuity or service charge added by a restaurant to the price of a meal, but only to the extent that such mandatory gratuity or service charge does not exceed 20 percent of the price of the meal. Where used articles are taken in trade, or in a series of trades as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference between the sales price of the new or used articles and the credit for the used articles.\n\t\t\t“Semiconductor cleanrooms” means the integrated systems, fixtures, piping, partitions, flooring, lighting, equipment, and all other property used to reduce contamination or to control airflow, temperature, humidity, vibration, or other environmental conditions required for the integrated process of semiconductor manufacturing.\n\t\t\t“Semiconductor equipment” means (i) machinery or tools or repair parts or replacements thereof; (ii) the related accessories, components, pedestals, bases, or foundations used in connection with the operation of the equipment, without regard to the proximity to the equipment, the method of attachment, or whether the equipment or accessories are affixed to the realty; (iii) semiconductor wafers and other property or supplies used to install, test, calibrate or recalibrate, characterize, condition, measure, or maintain the equipment and settings thereof; and (iv) equipment and supplies used for quality control testing of product, materials, equipment, or processes; or the measurement of equipment performance or production parameters regardless of where or when the quality control, testing, or measuring activity takes place, how the activity affects the operation of equipment, or whether the equipment and supplies come into contact with the product.\n\t\t\t“Short-term rental” means the same as such term is defined in § 15.2-983.\n\t\t\t“Storage” means any keeping or retention of tangible personal property for use, consumption or distribution in the Commonwealth, or for any purpose other than sale at retail in the regular course of business.\n\t\t\t“Tangible personal property” means personal property that may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses. “Tangible personal property” does not include stocks, bonds, notes, insurance or other obligations or securities. “Tangible personal property” includes (i) telephone calling cards upon their initial sale, which shall be exempt from all other state and local utility taxes, and (ii) manufactured signs.\n\t\t\t“Use” means the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business. “Use” does not include the exercise of any right or power, including use, distribution, or storage, over any tangible personal property sold to a nonresident donor for delivery outside of the Commonwealth to a nonresident recipient pursuant to an order placed by the donor from outside the Commonwealth via mail or telephone. “Use” does not include any sale determined to be a gift transaction, subject to tax under § 58.1-604.6.\n\t\t\t“Use tax” refers to the tax imposed upon the use, consumption, distribution, and storage as defined in this section.\n\t\t\t“Used directly,” when used in relation to manufacturing, processing, refining, or conversion, refers to those activities that are an integral part of the production of a product, including all steps of an integrated manufacturing or mining process, but not including ancillary activities such as general maintenance or administration. When used in relation to mining, “used directly” refers to the activities specified in this definition and, in addition, any reclamation activity of the land previously mined by the mining company required by state or federal law.\n\t\t\t“Video programmer” means a person that provides video programming to end-user subscribers.\n\t\t\t“Video programming” means video and\/or information programming provided by or generally considered comparable to programming provided by a cable operator, including, but not limited to, Internet service.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":12899,"edition_id":1,"name":"Retail Sales and Use Tax","identifier":"6","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:43:59","date_modified":"2026-06-26 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The record of this law\u2019s original creation isn\u2019t available online. It has been modified 32 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1966, chapter 151; in 1972, chapter 680; in 1973, chapter 313; in 1974, chapter 431; in 1976, chapters 375, 489, 666, 712, 764, and 770; in 1977, chapters 247 and 504; in 1978, chapters 50, 82, 181, 505, 656, 665, 706, 784, and 819; in 1979, chapters 148, 205, 555, 556, 557, 558, 561, 562, 564, 572, and 575; in 1980, chapters 81, 610, 611, 617, 618, 621, 631, 753, and 756; in 1981, chapters 398, 400, 405, 409, 416, and 599; in 1982, chapters 533, 546, 547, 636, and 649; in 1983, chapters 100, 184, 384, 414, 557, 565, and 599; in 1984, chapters 419, 522, 675, 683, 690, and 693; in 1985, chapter 473; in 1986, chapter 22; in 1988, chapter 899; in 1989, chapters 581 and 739; in 1995, chapter 96<\/a>; in 1999, chapters 138<\/a>, 187<\/a>, 723<\/a>, and 981<\/a>; in 2000, chapter 425<\/a>; in 2004, chapter 60<\/a>; in 2005, chapters 121<\/a>, 122<\/a>, and 355<\/a>; in 2006, chapters 519<\/a>, 541<\/a>, 568<\/a>, and 602<\/a>; in 2007, chapter 751<\/a>; in 2013, chapters 766<\/a> and 783<\/a>; in 2014, chapter 359<\/a>; in 2015, chapter 252<\/a>; in 2017, chapter 104<\/a>; in 2018, chapters 838<\/a> and 840<\/a>; in 2019, chapters 815<\/a>, 816<\/a>, and 854<\/a>; in 2020, chapters 327<\/a>, 427<\/a>, 428<\/a>, 705<\/a>, 708<\/a>, and 865<\/a>; in 2022, chapters 7<\/a>, 154<\/a>, 434<\/a>, 435<\/a>, and 640<\/a>.<\/p>","references":[{"id":58262,"section_number":"2.2-2320.2","catch_line":"Tourism promotion grants","order_by":null,"url":"\/2.2-2320.2\/"},{"id":84453,"section_number":"58.1-2292","catch_line":"Definitions","order_by":null,"url":"\/58.1-2292\/"},{"id":84228,"section_number":"58.1-3506","catch_line":"Other classifications of tangible personal property for taxation","order_by":null,"url":"\/58.1-3506\/"},{"id":58143,"section_number":"58.1-3818.8","catch_line":"Definitions","order_by":null,"url":"\/58.1-3818.8\/"},{"id":78016,"section_number":"58.1-3843","catch_line":"Scope of transient occupancy tax","order_by":null,"url":"\/58.1-3843\/"},{"id":74403,"section_number":"58.1-609.10","catch_line":"Miscellaneous exemptions","order_by":null,"url":"\/58.1-609.10\/"},{"id":78185,"section_number":"58.1-609.6","catch_line":"Media-related exemptions","order_by":null,"url":"\/58.1-609.6\/"},{"id":70753,"section_number":"58.1-610.1","catch_line":"Modular building manufacturers and retailers","order_by":null,"url":"\/58.1-610.1\/"}],"refers_to":[{"id":81829,"section_number":"15.2-983","catch_line":"Creation of registry for short-term rental of property","order_by":null,"url":"\/15.2-983\/"},{"id":82255,"section_number":"36-70","catch_line":"Short title","order_by":null,"url":"\/36-70\/"},{"id":74059,"section_number":"54.1-2100","catch_line":"Definitions","order_by":null,"url":"\/54.1-2100\/"},{"id":75504,"section_number":"58.1-2400","catch_line":"Title","order_by":null,"url":"\/58.1-2400\/"},{"id":66072,"section_number":"58.1-2401","catch_line":"Definitions","order_by":null,"url":"\/58.1-2401\/"},{"id":71554,"section_number":"58.1-439.18","catch_line":"Definitions","order_by":null,"url":"\/58.1-439.18\/"},{"id":69587,"section_number":"58.1-604.6","catch_line":"Gift transactions","order_by":null,"url":"\/58.1-604.6\/"},{"id":64845,"section_number":"58.1-605","catch_line":"To what extent and under what conditions cities and counties may levy local sales taxes; collection thereof by Commonwealth and return of revenue to each city or county entitled thereto","order_by":null,"url":"\/58.1-605\/"},{"id":85798,"section_number":"58.1-606","catch_line":"To what extent and under what conditions cities and counties may levy local use tax; collection thereof by Commonwealth and return of revenues to the cities and counties","order_by":null,"url":"\/58.1-606\/"},{"id":76556,"section_number":"58.1-612","catch_line":"Tax collectible from dealers; \"dealer\" defined; jurisdiction","order_by":null,"url":"\/58.1-612\/"},{"id":67446,"section_number":"58.1-613","catch_line":"Dealers' certificates of registration","order_by":null,"url":"\/58.1-613\/"}],"permalink":{"id":254553,"object_type":"law","relational_id":78097,"identifier":"58.1-602","token":"58.1\/I\/6\/58.1-602","url":"\/58.1-602\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-602\/","token":"58.1\/I\/6\/58.1-602","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-602","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter, unless the context clearly shows otherwise:\n\t\t“Accommodations” means any room or rooms, lodgings, or accommodations in any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, short-term rental<\/span>, or any other place in which rooms, lodging, space, or accommodations are regularly furnished to transients for a consideration. “Accommodations” does not include rooms or space offered by a person<\/span> in the business<\/span> of providing conference rooms, meeting space, or event space if the person<\/span> does not also offer rooms available for overnight sleeping.\n\t\t“Accommodations fee<\/span>” means the room charge less the discount room charge<\/span>, if any, provided that the accommodations fee<\/span> shall not be less than $0.\n\t\t“Accommodations intermediary<\/span>” means any person<\/span> other than an accommodations provider<\/span> that (i) facilitates the sale<\/span> of an accommodation and (ii) either (a) charges a room charge to the customer, and charges an accommodations fee<\/span> to the customer, which fee it retains as compensation for facilitating the sale; (b) collects a room charge from the customer; or (c) charges a fee, other than an accommodations fee<\/span>, to the customer, which fee it retains as compensation for facilitating the sale. For purposes of this definition, “facilitates the sale<\/span>” includes brokering, coordinating, or in any other way arranging for the purchase of the right to use<\/span> accommodations via a transaction directly, including via one or more payment processors, between a customer and an accommodations provider<\/span>.\n\t\t“Accommodations intermediary<\/span>” does not include a person<\/span>:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the accommodations are provided by an accommodations provider<\/span> operating under a trademark, trade name, or service mark belonging to such person<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Who facilitates the sale<\/span> of an accommodation if (i) the price paid by the customer to such person<\/span> is equal to the price paid by such person<\/span> to the accommodations provider<\/span> for the use<\/span> of the accommodations and (ii) the only compensation received by such person<\/span> for facilitating the sale of the accommodation is a commission paid from the accommodations provider<\/span> to such person<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Who is licensed as a real estate licensee pursuant to Article 1 (§ 54.1-2100<\/a> et seq.) of Chapter 21 of Title 54.1, when acting within the scope of such license.\n\t\t\t“Accommodations provider<\/span>” means any person<\/span> that furnishes<\/span> accommodations to the general public for compensation. The term “furnishes<\/span>” includes the sale of use<\/span> or possession<\/span> or the sale of the right to use<\/span> or possess.\n\t\t\t“Advertising<\/span>” means the planning, creating, or placing of advertising<\/span> in newspapers, magazines, billboards, broadcasting and other media, including, without limitation, the providing of concept, writing, graphic design, mechanical art, photography and production supervision. Any person<\/span> providing advertising<\/span> as defined in this section shall be deemed to be the user or consumer of all tangible personal property<\/span> purchased for use<\/span> in such advertising<\/span>.\n\t\t\t“Affiliate<\/span>” means the same as such term is defined in § 58.1-439.18<\/a>.\n\t\t\t“Amplification, transmission, distribution<\/span>, and network equipment<\/span>” means production, distribution<\/span>, and other equipment used to provide Internet-access services, such as computer and communications equipment and software used for storing, processing, and retrieving end-user subscribers’ requests. A “network” includes modems, fiber optic cables, coaxial cables, radio equipment, routing equipment, switching equipment, a cable modem termination system, associated software, transmitters, power equipment, storage<\/span> devices, servers, multiplexers, and antennas, which network is used to provide Internet service<\/span>, regardless of whether the provider of such service is also a telephone common carrier or whether such network is also used to provide services other than Internet services<\/span>.\n\t\t\t“Business<\/span>” includes any activity engaged in by any person<\/span>, or caused to be engaged in by him, with the object<\/span> of gain, benefit or advantage, either directly or indirectly.\n\t\t\t“Cost price<\/span>” means the actual cost of an item or article of tangible personal property<\/span> computed in the same manner as the sales price<\/span> as defined in this section without any deductions therefrom on account of the cost of materials<\/span> used, labor, or service costs, transportation charges, or any expenses whatsoever.\n\t\t\t“Custom program<\/span>” means a computer program that is specifically designed and developed only for one customer. The combining of two or more prewritten programs<\/span> does not constitute a custom computer program. A prewritten program<\/span> that is modified to any degree remains a prewritten program<\/span> and does not become custom.\n\t\t\t“Discount room charge<\/span>” means the full amount charged by the accommodations provider<\/span> to the accommodations intermediary<\/span>, or an affiliate<\/span> thereof, for furnishing the accommodations.\n\t\t\t“Distribution<\/span>” means the transfer or delivery of tangible personal property<\/span> for use<\/span>, consumption, or storage<\/span> by the distributee, and the use<\/span>, consumption, or storage<\/span> of tangible personal property<\/span> by a person<\/span> that has processed, manufactured, refined, or converted such property, but does not include the transfer or delivery of tangible personal property<\/span> for resale or any use<\/span>, consumption, or storage<\/span> otherwise exempt under this chapter.\n\t\t\t“Gross proceeds<\/span>” means the charges made or voluntary contributions received for the lease or rental<\/span> of tangible personal property<\/span> or for furnishing services, computed with the same deductions, where applicable, as for sales price<\/span> as defined in this section over the term of the lease, rental, service, or use<\/span>, but not less frequently than monthly. “Gross proceeds<\/span>” does not include finance charges, carrying charges, service charges, or interest from credit extended on the lease or rental<\/span> of tangible personal property<\/span> under conditional lease or rental<\/span> contracts<\/span> or other conditional contracts<\/span> providing for the deferred payments of the lease or rental<\/span> price.\n\t\t\t“Gross sales<\/span>” means the sum total of all retail sales<\/span> of tangible personal property<\/span> or services as defined in this chapter, without any deduction, except as provided in this chapter. “Gross sales<\/span>” does not include the federal retailers<\/span>’ excise tax or the federal diesel fuel excise tax imposed in § 4091 of the Internal Revenue Code if the excise tax is billed to the purchaser separately from the selling price of the article, or the Virginia retail sales<\/span> or use<\/span> tax, or any sales or use<\/span> tax imposed by any county or city under § 58.1-605<\/a> or 58.1-606<\/a>.\n\t\t\t“Import” and “imported” are words applicable to tangible personal property<\/span> imported into the Commonwealth from other states as well as from foreign countries, and “export” and “exported” are words applicable to tangible personal property<\/span> exported from the Commonwealth to other states as well as to foreign countries.\n\t\t\t“In this Commonwealth<\/span>” or “in the Commonwealth<\/span>” means within the limits of the Commonwealth of Virginia and includes all territory within these limits owned by or ceded to the United States of America.\n\t\t\t“Integrated process<\/span>,” when used in relation to semiconductor manufacturing<\/span>, means a process that begins with the research or development of semiconductor products, equipment, or processes, includes the handling and storage<\/span> of raw materials<\/span> at a plant site, and continues to the point that the product is packaged for final sale and either shipped or conveyed to a warehouse. Without limiting the foregoing, any semiconductor equipment<\/span>, fuel, power, energy, supplies, or other tangible personal property<\/span> shall be deemed used as part of the integrated process<\/span> if its use<\/span> contributes, before, during, or after production, to higher product quality, production yields, or process efficiencies. Except as otherwise provided by law<\/span>, “integrated process<\/span>” does not mean general maintenance or administration.\n\t\t\t“Internet” means, collectively, the myriad of computer and telecommunications facilities, which comprise the interconnected worldwide network of computer networks<\/span> that employ the Transmission Control Protocol\/Internet Protocol, or any predecessor or successor to such protocol, to communicate information of all kinds by wire or radio.\n\t\t\t“Internet service<\/span>” means a service that enables users to access content, information, and other services offered over the Internet.\n\t\t\t“Lease or rental<\/span>” means the leasing or renting of tangible personal property<\/span> and the possession<\/span> or use<\/span> thereof by the lessee or renter for a consideration, without transfer of the title to such property.\n\t\t\t“Manufacturing<\/span>, processing, refining, or conversion<\/span>” includes the production line of the plant starting with the handling and storage<\/span> of raw materials<\/span> at the plant site and continuing through the last step of production where the product is finished or completed for sale and conveyed to a warehouse at the production site, and also includes equipment and supplies used for production line testing and quality control. “Manufacturing<\/span>” also includes the necessary ancillary activities of newspaper and magazine printing when such activities are performed by the publisher of any newspaper or magazine for sale daily or regularly at average intervals not exceeding three months.\n\t\t\tThe determination of whether any manufacturing<\/span>, mining, processing, refining or conversion activity is industrial in nature shall be made without regard to plant size, existence or size of finished product inventory, degree of mechanization, amount of capital investment, number of employees or other factors relating principally to the size of the business<\/span>. Further, “industrial in nature” includes, but is not limited to, those businesses classified in codes 10 through 14 and 20 through 39 published in the Standard Industrial Classification Manual for 1972 and any supplements issued thereafter.\n\t\t\t“Modular building” means, but is not limited to, single and multifamily houses, apartment units, commercial buildings, and permanent additions thereof, comprised of one or more sections that are intended to become real property, primarily constructed at a location other than the permanent site, built to comply with the Virginia Industrialized Building Safety Law<\/span> (§ 36-70<\/a> et seq.) as regulated by the Virginia Department<\/span> of Housing and Community Development, and shipped with most permanent components in place to the site of final assembly. For purposes of this chapter, “modular building” does not include a mobile office as defined in § 58.1-2401<\/a> or any manufactured building subject to and certified under the provisions of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. § 5401 et seq.).\n\t\t\t“Modular building manufacturer<\/span>” means a person<\/span> that owns or operates a manufacturing<\/span> facility and is engaged in the fabrication, construction and assembling of building supplies and materials<\/span> into modular buildings, as defined in this section, at a location other than at the site where the modular building will be assembled on the permanent foundation and may or may not be engaged in the process of affixing the modules to the foundation at the permanent site.\n\t\t\t“Modular building retailer<\/span>” means any person<\/span> that purchases or acquires a modular building from a modular building manufacturer<\/span>, or from another person<\/span>, for subsequent sale to a customer residing within or outside of the Commonwealth, with or without installation of the modular building to the foundation at the permanent site.\n\t\t\t“Motor vehicle<\/span>” means a “motor vehicle<\/span>” as defined in § 58.1-2401<\/a>, taxable under the provisions of the Virginia Motor Vehicles<\/span> Sales and Use<\/span> Tax Act (§ 58.1-2400<\/a> et seq.) and upon the sale of which all applicable motor vehicle<\/span> sales and use<\/span> taxes have been paid.\n\t\t\t“Occasional sale<\/span>” means a sale of tangible personal property<\/span> not held or used by a seller in the course of an activity for which it is required to hold a certificate of registration, including the sale or exchange of all or substantially all the assets<\/span> of any business<\/span> and the reorganization or liquidation<\/span> of any business<\/span>, provided that such sale or exchange is not one of a series of sales and exchanges sufficient in number, scope and character to constitute an activity requiring the holding of a certificate of registration.\n\t\t\t“Open video system<\/span>” means an open video system<\/span> authorized pursuant to 47 U.S.C. § 573 and, for purposes of this chapter only, also includes Internet service<\/span> regardless of whether the provider of such service is also a telephone common carrier.\n\t\t\t“Person<\/span>” includes any individual, firm, copartnership, cooperative, nonprofit membership corporation, joint venture, association, corporation, estate, trust, business<\/span> trust, trustee in bankruptcy<\/span>, receiver, auctioneer, syndicate, assignee, club, society, or other group or combination acting as a unit, body politic or political subdivision, whether public or private, or quasi-public, and the plural of “person<\/span>” means the same as the singular.\n\t\t\t“Prewritten program<\/span>” means a computer program that is prepared, held or existing for general or repeated sale or lease, including a computer program developed for in-house use<\/span> and subsequently sold or leased to unrelated third parties.\n\t\t\t“Qualifying locality<\/span>” means Charlotte County, Gloucester County, Halifax County, Henry County, Mecklenburg County, Northampton County, Patrick County, Pittsylvania County, or the City of Danville.\n\t\t\t“Railroad rolling stock<\/span>” means locomotives, of whatever motive power, autocars, railroad cars of every kind and description, and all other equipment determined by the Tax Commissioner<\/span> to constitute railroad rolling stock<\/span>.\n\t\t\t“Remote seller<\/span>” means any dealer deemed to have sufficient activity within the Commonwealth to require registration under § 58.1-613<\/a> under the criteria specified in subdivision C 10 or 11 of § 58.1-612<\/a> or any software provider acting on behalf of such dealer.\n\t\t\t“Retail sale<\/span>” or a “sale at retail<\/span>” means a sale to any person<\/span> for any purpose other than for resale in the form of tangible personal property<\/span> or services taxable under this chapter, and shall include any such transaction as the Tax Commissioner<\/span> upon investigation finds to be in lieu of a sale. All sales for resale must be made in strict compliance with regulations applicable to this chapter. Any dealer making a sale for resale which is not in strict compliance with such regulations shall be personally liable for payment of the tax.\n\t\t\tThe terms “retail sale<\/span>” and a “sale at retail<\/span>” specifically include the following: (i) the sale or charges for any accommodations furnished to transients for less than 90 continuous days; (ii) sales of tangible personal property<\/span> to persons<\/span> for resale when because of the operation of the business<\/span>, or its very nature, or the lack of a place of business<\/span> in which to display a certificate of registration, or the lack of a place of business<\/span> in which to keep records, or the lack of adequate records, or because such persons<\/span> are minors<\/span> or transients, or because such persons<\/span> are engaged in essentially service businesses, or for any other reason there is likelihood that the Commonwealth will lose tax funds due to the difficulty of policing such business<\/span> operations; (iii) the separately stated charge made for automotive refinish repair materials<\/span> that are permanently applied to or affixed to a motor vehicle<\/span> during its repair; and (iv) the separately stated charge for equipment available for lease or purchase by a provider of satellite television programming to the customer of such programming. Equipment sold to a provider of satellite television programming for subsequent lease or purchase by the customer of such programming shall be deemed a sale for resale. The Tax Commissioner<\/span> is authorized to promulgate regulations requiring vendors of or sellers to such persons<\/span> to collect the tax imposed by this chapter on the cost price<\/span> of such tangible personal property<\/span> to such persons<\/span> and may refuse to issue<\/span> certificates of registration to such persons<\/span>. The terms “retail sale<\/span>” and a “sale at retail<\/span>” also specifically include the separately stated charge made for supplies used during automotive repairs whether or not there is transfer of title or possession<\/span> of the supplies and whether or not the supplies are attached to the automobile. The purchase of such supplies by an automotive repairer for sale to the customer of such repair services shall be deemed a sale for resale.\n\t\t\tThe term “transient” does not include a purchaser of camping memberships, time-shares, condominiums, or other similar contracts<\/span> or interests that permit the use<\/span> of, or constitute an interest in, real estate, however created or sold and whether registered with the Commonwealth or not. Further, a purchaser of a right or license which entitles the purchaser to use<\/span> the amenities and facilities of a specific real estate project on an ongoing basis throughout its term shall not be deemed a transient, provided, however, that the term or time period involved is for seven years or more.\n\t\t\tThe terms “retail sale<\/span>” and “sale at retail<\/span>” do not include a transfer of title to tangible personal property<\/span> after its use<\/span> as tools, tooling, machinery or equipment, including dies, molds, and patterns, if (i) at the time of purchase, the purchaser is obligated, under the terms of a written contract<\/span>, to make the transfer and (ii) the transfer is made for the same or a greater consideration to the person<\/span> for whom the purchaser manufactures goods.\n\t\t\t“Retailer” means every person<\/span> engaged in the business<\/span> of making sales at retail, or for distribution<\/span>, use<\/span>, consumption, or storage<\/span> to be used or consumed in the Commonwealth<\/span>.\n\t\t\t“Room charge” means the full retail price charged to the customer for the use<\/span> of the accommodations before taxes. “Room charge” includes any fee charged to the customer and retained as compensation for facilitating the sale, whether described as an accommodations fee<\/span>, facilitation fee, or any other name. The room charge shall be determined in accordance with 23VAC10-210-730 and the related rulings of the Department<\/span> on the same.\n\t\t\t“Sale” means any transfer of title or possession<\/span>, or both, exchange, barter, lease or rental<\/span>, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property<\/span> and any rendition of a taxable service for a consideration, and includes the fabrication of tangible personal property<\/span> for consumers who furnish, either directly or indirectly, the materials<\/span> used in fabrication, and the furnishing, preparing, or serving for a consideration of any tangible personal property<\/span> consumed on the premises of the person<\/span> furnishing, preparing, or serving such tangible personal property<\/span>. A transaction whereby the possession<\/span> of property is transferred but the seller retains title as security for the payment of the price shall be deemed a sale.\n\t\t\t“Sales price<\/span>” means the total amount for which tangible personal property<\/span> or services are sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser, consumer, or lessee by the dealer, without any deduction therefrom on account of the cost of the property sold, the cost of materials<\/span> used, labor or service costs, losses or any other expenses whatsoever. “Sales price<\/span>” does not include (i) any cash discount allowed and taken; (ii) finance charges, carrying charges, service charges or interest from credit extended on sales of tangible personal property<\/span> under conditional sale contracts<\/span> or other conditional contracts<\/span> providing for deferred payments of the purchase price; (iii) separately stated local property taxes collected; (iv) that portion of the amount paid by the purchaser as a discretionary gratuity added to the price of a meal; or (v) that portion of the amount paid by the purchaser as a mandatory gratuity or service charge added by a restaurant to the price of a meal, but only to the extent that such mandatory gratuity or service charge does not exceed 20 percent of the price of the meal. Where used articles are taken in trade, or in a series of trades as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference between the sales price<\/span> of the new or used articles and the credit for the used articles.\n\t\t\t“Semiconductor cleanrooms<\/span>” means the integrated systems, fixtures, piping, partitions<\/span>, flooring, lighting, equipment, and all other property used to reduce contamination or to control airflow, temperature, humidity, vibration, or other environmental conditions required for the integrated process<\/span> of semiconductor manufacturing<\/span>.\n\t\t\t“Semiconductor equipment<\/span>” means (i) machinery or tools or repair parts or replacements thereof; (ii) the related accessories, components, pedestals, bases, or foundations used in connection with the operation of the equipment, without regard to the proximity to the equipment, the method of attachment<\/span>, or whether the equipment or accessories are affixed to the realty; (iii) semiconductor wafers and other property or supplies used to install, test, calibrate or recalibrate, characterize, condition, measure, or maintain the equipment and settings thereof; and (iv) equipment and supplies used for quality control testing of product, materials<\/span>, equipment, or processes; or the measurement of equipment performance or production parameters regardless of where or when the quality control, testing, or measuring activity takes place, how the activity affects the operation of equipment, or whether the equipment and supplies come into contact with the product.\n\t\t\t“Short-term rental<\/span>” means the same as such term is defined in § 15.2-983<\/a>.\n\t\t\t“Storage<\/span>” means any keeping or retention of tangible personal property<\/span> for use<\/span>, consumption or distribution<\/span> in the Commonwealth<\/span>, or for any purpose other than sale at retail<\/span> in the regular course of business<\/span>.\n\t\t\t“Tangible personal property<\/span>” means personal property that may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses. “Tangible personal property<\/span>” does not include stocks, bonds<\/span>, notes, insurance or other obligations or securities. “Tangible personal property<\/span>” includes (i) telephone calling cards upon their initial sale, which shall be exempt from all other state and local utility taxes, and (ii) manufactured signs.\n\t\t\t“Use<\/span>” means the exercise of any right or power over tangible personal property<\/span> incident to the ownership thereof, except that it does not include the sale at retail<\/span> of that property in the regular course of business<\/span>. “Use<\/span>” does not include the exercise of any right or power, including use<\/span>, distribution<\/span>, or storage<\/span>, over any tangible personal property<\/span> sold to a nonresident donor for delivery outside of the Commonwealth to a nonresident recipient pursuant to an order<\/span> placed by the donor from outside the Commonwealth via mail or telephone. “Use<\/span>” does not include any sale determined to be a gift transaction, subject to tax under § 58.1-604.6<\/a>.\n\t\t\t“Use<\/span> tax” refers to the tax imposed upon the use<\/span>, consumption, distribution<\/span>, and storage<\/span> as defined in this section.\n\t\t\t“Used directly,” when used in relation to manufacturing<\/span>, processing, refining, or conversion<\/span>, refers to those activities that are an integral part of the production of a product, including all steps of an integrated manufacturing<\/span> or mining process, but not including ancillary activities such as general maintenance or administration. When used in relation to mining, “used directly” refers to the activities specified in this definition and, in addition, any reclamation activity of the land previously mined by the mining company required by state or federal law<\/span>.\n\t\t\t“Video programmer<\/span>” means a person<\/span> that provides video programming<\/span> to end-user subscribers.\n\t\t\t“Video programming<\/span>” means video and\/or information programming provided by or generally considered comparable to programming provided by a cable operator, including, but not limited to, Internet service<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 58.1-602)\n\nAs used in this chapter, unless the context clearly shows otherwise:\n\t\t“Accommodations” means any room or rooms, lodgings, or\naccommodations in any hotel, motel, inn, tourist camp, tourist cabin, camping\ngrounds, club, short-term rental, or any other place in which rooms, lodging,\nspace, or accommodations are regularly furnished to transients for a\nconsideration. “Accommodations” does not include rooms or space\noffered by a person in the business of providing conference rooms, meeting\nspace, or event space if the person does not also offer rooms available for\novernight sleeping.\n\t\t“Accommodations fee” means the room charge less the discount room\ncharge, if any, provided that the accommodations fee shall not be less than $0.\n\t\t“Accommodations intermediary” means any person other than an\naccommodations provider that (i) facilitates the sale of an accommodation and\n(ii) either (a) charges a room charge to the customer, and charges an\naccommodations fee to the customer, which fee it retains as compensation for\nfacilitating the sale; (b) collects a room charge from the customer; or (c)\ncharges a fee, other than an accommodations fee, to the customer, which fee it\nretains as compensation for facilitating the sale. For purposes of this\ndefinition, “facilitates the sale” includes brokering, coordinating,\nor in any other way arranging for the purchase of the right to use\naccommodations via a transaction directly, including via one or more payment\nprocessors, between a customer and an accommodations provider.\n\t\t“Accommodations intermediary” does not include a person:\n\n1. If the accommodations are provided by an accommodations provider operating\nunder a trademark, trade name, or service mark belonging to such person;\n\n2. Who facilitates the sale of an accommodation if (i) the price paid by the\ncustomer to such person is equal to the price paid by such person to the\naccommodations provider for the use of the accommodations and (ii) the only\ncompensation received by such person for facilitating the sale of the\naccommodation is a commission paid from the accommodations provider to such\nperson; or\n\n3. Who is licensed as a real estate licensee pursuant to Article 1 (§\n54.1-2100 et seq.) of Chapter 21 of Title 54.1, when acting within the scope of\nsuch license.\n\t\t\t“Accommodations provider” means any person that furnishes\naccommodations to the general public for compensation. The term\n“furnishes” includes the sale of use or possession or the sale of\nthe right to use or possess.\n\t\t\t“Advertising” means the planning, creating, or placing of\nadvertising in newspapers, magazines, billboards, broadcasting and other media,\nincluding, without limitation, the providing of concept, writing, graphic\ndesign, mechanical art, photography and production supervision. Any person\nproviding advertising as defined in this section shall be deemed to be the user\nor consumer of all tangible personal property purchased for use in such\nadvertising.\n\t\t\t“Affiliate” means the same as such term is defined in §\n58.1-439.18.\n\t\t\t“Amplification, transmission, distribution, and network\nequipment” means production, distribution, and other equipment used to\nprovide Internet-access services, such as computer and communications equipment\nand software used for storing, processing, and retrieving end-user\nsubscribers’ requests. A “network” includes modems, fiber\noptic cables, coaxial cables, radio equipment, routing equipment, switching\nequipment, a cable modem termination system, associated software, transmitters,\npower equipment, storage devices, servers, multiplexers, and antennas, which\nnetwork is used to provide Internet service, regardless of whether the provider\nof such service is also a telephone common carrier or whether such network is\nalso used to provide services other than Internet services.\n\t\t\t“Business” includes any activity engaged in by any person, or\ncaused to be engaged in by him, with the object of gain, benefit or advantage,\neither directly or indirectly.\n\t\t\t“Cost price” means the actual cost of an item or article of\ntangible personal property computed in the same manner as the sales price as\ndefined in this section without any deductions therefrom on account of the cost\nof materials used, labor, or service costs, transportation charges, or any\nexpenses whatsoever.\n\t\t\t“Custom program” means a computer program that is specifically\ndesigned and developed only for one customer. The combining of two or more\nprewritten programs does not constitute a custom computer program. A prewritten\nprogram that is modified to any degree remains a prewritten program and does not\nbecome custom.\n\t\t\t“Discount room charge” means the full amount charged by the\naccommodations provider to the accommodations intermediary, or an affiliate\nthereof, for furnishing the accommodations.\n\t\t\t“Distribution” means the transfer or delivery of tangible\npersonal property for use, consumption, or storage by the distributee, and the\nuse, consumption, or storage of tangible personal property by a person that has\nprocessed, manufactured, refined, or converted such property, but does not\ninclude the transfer or delivery of tangible personal property for resale or any\nuse, consumption, or storage otherwise exempt under this chapter.\n\t\t\t“Gross proceeds” means the charges made or voluntary\ncontributions received for the lease or rental of tangible personal property or\nfor furnishing services, computed with the same deductions, where applicable, as\nfor sales price as defined in this section over the term of the lease, rental,\nservice, or use, but not less frequently than monthly. “Gross\nproceeds” does not include finance charges, carrying charges, service\ncharges, or interest from credit extended on the lease or rental of tangible\npersonal property under conditional lease or rental contracts or other\nconditional contracts providing for the deferred payments of the lease or rental\nprice.\n\t\t\t“Gross sales” means the sum total of all retail sales of tangible\npersonal property or services as defined in this chapter, without any deduction,\nexcept as provided in this chapter. “Gross sales” does not include\nthe federal retailers’ excise tax or the federal diesel fuel excise tax\nimposed in § 4091 of the Internal Revenue Code if the excise tax is billed\nto the purchaser separately from the selling price of the article, or the\nVirginia retail sales or use tax, or any sales or use tax imposed by any county\nor city under § 58.1-605 or 58.1-606.\n\t\t\t“Import” and “imported” are words applicable to\ntangible personal property imported into the Commonwealth from other states as\nwell as from foreign countries, and “export” and\n“exported” are words applicable to tangible personal property\nexported from the Commonwealth to other states as well as to foreign countries.\n\t\t\t“In this Commonwealth” or “in the Commonwealth” means\nwithin the limits of the Commonwealth of Virginia and includes all territory\nwithin these limits owned by or ceded to the United States of America.\n\t\t\t“Integrated process,” when used in relation to semiconductor\nmanufacturing, means a process that begins with the research or development of\nsemiconductor products, equipment, or processes, includes the handling and\nstorage of raw materials at a plant site, and continues to the point that the\nproduct is packaged for final sale and either shipped or conveyed to a\nwarehouse. Without limiting the foregoing, any semiconductor equipment, fuel,\npower, energy, supplies, or other tangible personal property shall be deemed\nused as part of the integrated process if its use contributes, before, during,\nor after production, to higher product quality, production yields, or process\nefficiencies. Except as otherwise provided by law, “integrated\nprocess” does not mean general maintenance or administration.\n\t\t\t“Internet” means, collectively, the myriad of computer and\ntelecommunications facilities, which comprise the interconnected worldwide\nnetwork of computer networks that employ the Transmission Control\nProtocol\/Internet Protocol, or any predecessor or successor to such protocol, to\ncommunicate information of all kinds by wire or radio.\n\t\t\t“Internet service” means a service that enables users to access\ncontent, information, and other services offered over the Internet.\n\t\t\t“Lease or rental” means the leasing or renting of tangible\npersonal property and the possession or use thereof by the lessee or renter for\na consideration, without transfer of the title to such property.\n\t\t\t“Manufacturing, processing, refining, or conversion” includes the\nproduction line of the plant starting with the handling and storage of raw\nmaterials at the plant site and continuing through the last step of production\nwhere the product is finished or completed for sale and conveyed to a warehouse\nat the production site, and also includes equipment and supplies used for\nproduction line testing and quality control. “Manufacturing” also\nincludes the necessary ancillary activities of newspaper and magazine printing\nwhen such activities are performed by the publisher of any newspaper or magazine\nfor sale daily or regularly at average intervals not exceeding three months.\n\t\t\tThe determination of whether any manufacturing, mining, processing, refining\nor conversion activity is industrial in nature shall be made without regard to\nplant size, existence or size of finished product inventory, degree of\nmechanization, amount of capital investment, number of employees or other\nfactors relating principally to the size of the business. Further,\n“industrial in nature” includes, but is not limited to, those\nbusinesses classified in codes 10 through 14 and 20 through 39 published in the\nStandard Industrial Classification Manual for 1972 and any supplements issued\nthereafter.\n\t\t\t“Modular building” means, but is not limited to, single and\nmultifamily houses, apartment units, commercial buildings, and permanent\nadditions thereof, comprised of one or more sections that are intended to become\nreal property, primarily constructed at a location other than the permanent\nsite, built to comply with the Virginia Industrialized Building Safety Law\n(§ 36-70 et seq.) as regulated by the Virginia Department of Housing and\nCommunity Development, and shipped with most permanent components in place to\nthe site of final assembly. For purposes of this chapter, “modular\nbuilding” does not include a mobile office as defined in § 58.1-2401\nor any manufactured building subject to and certified under the provisions of\nthe National Manufactured Housing Construction and Safety Standards Act of 1974\n(42 U.S.C. § 5401 et seq.).\n\t\t\t“Modular building manufacturer” means a person that owns or\noperates a manufacturing facility and is engaged in the fabrication,\nconstruction and assembling of building supplies and materials into modular\nbuildings, as defined in this section, at a location other than at the site\nwhere the modular building will be assembled on the permanent foundation and may\nor may not be engaged in the process of affixing the modules to the foundation\nat the permanent site.\n\t\t\t“Modular building retailer” means any person that purchases or\nacquires a modular building from a modular building manufacturer, or from\nanother person, for subsequent sale to a customer residing within or outside of\nthe Commonwealth, with or without installation of the modular building to the\nfoundation at the permanent site.\n\t\t\t“Motor vehicle” means a “motor vehicle” as defined in\n§ 58.1-2401, taxable under the provisions of the Virginia Motor Vehicles\nSales and Use Tax Act (§ 58.1-2400 et seq.) and upon the sale of which all\napplicable motor vehicle sales and use taxes have been paid.\n\t\t\t“Occasional sale” means a sale of tangible personal property not\nheld or used by a seller in the course of an activity for which it is required\nto hold a certificate of registration, including the sale or exchange of all or\nsubstantially all the assets of any business and the reorganization or\nliquidation of any business, provided that such sale or exchange is not one of a\nseries of sales and exchanges sufficient in number, scope and character to\nconstitute an activity requiring the holding of a certificate of registration.\n\t\t\t“Open video system” means an open video system authorized\npursuant to 47 U.S.C. § 573 and, for purposes of this chapter only, also\nincludes Internet service regardless of whether the provider of such service is\nalso a telephone common carrier.\n\t\t\t“Person” includes any individual, firm, copartnership,\ncooperative, nonprofit membership corporation, joint venture, association,\ncorporation, estate, trust, business trust, trustee in bankruptcy, receiver,\nauctioneer, syndicate, assignee, club, society, or other group or combination\nacting as a unit, body politic or political subdivision, whether public or\nprivate, or quasi-public, and the plural of “person” means the same\nas the singular.\n\t\t\t“Prewritten program” means a computer program that is prepared,\nheld or existing for general or repeated sale or lease, including a computer\nprogram developed for in-house use and subsequently sold or leased to unrelated\nthird parties.\n\t\t\t“Qualifying locality” means Charlotte County, Gloucester County,\nHalifax County, Henry County, Mecklenburg County, Northampton County, Patrick\nCounty, Pittsylvania County, or the City of Danville.\n\t\t\t“Railroad rolling stock” means locomotives, of whatever motive\npower, autocars, railroad cars of every kind and description, and all other\nequipment determined by the Tax Commissioner to constitute railroad rolling\nstock.\n\t\t\t“Remote seller” means any dealer deemed to have sufficient\nactivity within the Commonwealth to require registration under § 58.1-613\nunder the criteria specified in subdivision C 10 or 11 of § 58.1-612 or any\nsoftware provider acting on behalf of such dealer.\n\t\t\t“Retail sale” or a “sale at retail” means a sale to\nany person for any purpose other than for resale in the form of tangible\npersonal property or services taxable under this chapter, and shall include any\nsuch transaction as the Tax Commissioner upon investigation finds to be in lieu\nof a sale. All sales for resale must be made in strict compliance with\nregulations applicable to this chapter. Any dealer making a sale for resale\nwhich is not in strict compliance with such regulations shall be personally\nliable for payment of the tax.\n\t\t\tThe terms “retail sale” and a “sale at retail”\nspecifically include the following: (i) the sale or charges for any\naccommodations furnished to transients for less than 90 continuous days; (ii)\nsales of tangible personal property to persons for resale when because of the\noperation of the business, or its very nature, or the lack of a place of\nbusiness in which to display a certificate of registration, or the lack of a\nplace of business in which to keep records, or the lack of adequate records, or\nbecause such persons are minors or transients, or because such persons are\nengaged in essentially service businesses, or for any other reason there is\nlikelihood that the Commonwealth will lose tax funds due to the difficulty of\npolicing such business operations; (iii) the separately stated charge made for\nautomotive refinish repair materials that are permanently applied to or affixed\nto a motor vehicle during its repair; and (iv) the separately stated charge for\nequipment available for lease or purchase by a provider of satellite television\nprogramming to the customer of such programming. Equipment sold to a provider of\nsatellite television programming for subsequent lease or purchase by the\ncustomer of such programming shall be deemed a sale for resale. The Tax\nCommissioner is authorized to promulgate regulations requiring vendors of or\nsellers to such persons to collect the tax imposed by this chapter on the cost\nprice of such tangible personal property to such persons and may refuse to issue\ncertificates of registration to such persons. The terms “retail\nsale” and a “sale at retail” also specifically include the\nseparately stated charge made for supplies used during automotive repairs\nwhether or not there is transfer of title or possession of the supplies and\nwhether or not the supplies are attached to the automobile. The purchase of such\nsupplies by an automotive repairer for sale to the customer of such repair\nservices shall be deemed a sale for resale.\n\t\t\tThe term “transient” does not include a purchaser of camping\nmemberships, time-shares, condominiums, or other similar contracts or interests\nthat permit the use of, or constitute an interest in, real estate, however\ncreated or sold and whether registered with the Commonwealth or not. Further, a\npurchaser of a right or license which entitles the purchaser to use the\namenities and facilities of a specific real estate project on an ongoing basis\nthroughout its term shall not be deemed a transient, provided, however, that the\nterm or time period involved is for seven years or more.\n\t\t\tThe terms “retail sale” and “sale at retail” do not\ninclude a transfer of title to tangible personal property after its use as\ntools, tooling, machinery or equipment, including dies, molds, and patterns, if\n(i) at the time of purchase, the purchaser is obligated, under the terms of a\nwritten contract, to make the transfer and (ii) the transfer is made for the\nsame or a greater consideration to the person for whom the purchaser\nmanufactures goods.\n\t\t\t“Retailer” means every person engaged in the business of making\nsales at retail, or for distribution, use, consumption, or storage to be used or\nconsumed in the Commonwealth.\n\t\t\t“Room charge” means the full retail price charged to the customer\nfor the use of the accommodations before taxes. “Room charge”\nincludes any fee charged to the customer and retained as compensation for\nfacilitating the sale, whether described as an accommodations fee, facilitation\nfee, or any other name. The room charge shall be determined in accordance with\n23VAC10-210-730 and the related rulings of the Department on the same.\n\t\t\t“Sale” means any transfer of title or possession, or both,\nexchange, barter, lease or rental, conditional or otherwise, in any manner or by\nany means whatsoever, of tangible personal property and any rendition of a\ntaxable service for a consideration, and includes the fabrication of tangible\npersonal property for consumers who furnish, either directly or indirectly, the\nmaterials used in fabrication, and the furnishing, preparing, or serving for a\nconsideration of any tangible personal property consumed on the premises of the\nperson furnishing, preparing, or serving such tangible personal property. A\ntransaction whereby the possession of property is transferred but the seller\nretains title as security for the payment of the price shall be deemed a sale.\n\t\t\t“Sales price” means the total amount for which tangible personal\nproperty or services are sold, including any services that are a part of the\nsale, valued in money, whether paid in money or otherwise, and includes any\namount for which credit is given to the purchaser, consumer, or lessee by the\ndealer, without any deduction therefrom on account of the cost of the property\nsold, the cost of materials used, labor or service costs, losses or any other\nexpenses whatsoever. “Sales price” does not include (i) any cash\ndiscount allowed and taken; (ii) finance charges, carrying charges, service\ncharges or interest from credit extended on sales of tangible personal property\nunder conditional sale contracts or other conditional contracts providing for\ndeferred payments of the purchase price; (iii) separately stated local property\ntaxes collected; (iv) that portion of the amount paid by the purchaser as a\ndiscretionary gratuity added to the price of a meal; or (v) that portion of the\namount paid by the purchaser as a mandatory gratuity or service charge added by\na restaurant to the price of a meal, but only to the extent that such mandatory\ngratuity or service charge does not exceed 20 percent of the price of the meal.\nWhere used articles are taken in trade, or in a series of trades as a credit or\npart payment on the sale of new or used articles, the tax levied by this chapter\nshall be paid on the net difference between the sales price of the new or used\narticles and the credit for the used articles.\n\t\t\t“Semiconductor cleanrooms” means the integrated systems,\nfixtures, piping, partitions, flooring, lighting, equipment, and all other\nproperty used to reduce contamination or to control airflow, temperature,\nhumidity, vibration, or other environmental conditions required for the\nintegrated process of semiconductor manufacturing.\n\t\t\t“Semiconductor equipment” means (i) machinery or tools or repair\nparts or replacements thereof; (ii) the related accessories, components,\npedestals, bases, or foundations used in connection with the operation of the\nequipment, without regard to the proximity to the equipment, the method of\nattachment, or whether the equipment or accessories are affixed to the realty;\n(iii) semiconductor wafers and other property or supplies used to install, test,\ncalibrate or recalibrate, characterize, condition, measure, or maintain the\nequipment and settings thereof; and (iv) equipment and supplies used for quality\ncontrol testing of product, materials, equipment, or processes; or the\nmeasurement of equipment performance or production parameters regardless of\nwhere or when the quality control, testing, or measuring activity takes place,\nhow the activity affects the operation of equipment, or whether the equipment\nand supplies come into contact with the product.\n\t\t\t“Short-term rental” means the same as such term is defined in\n§ 15.2-983.\n\t\t\t“Storage” means any keeping or retention of tangible personal\nproperty for use, consumption or distribution in the Commonwealth, or for any\npurpose other than sale at retail in the regular course of business.\n\t\t\t“Tangible personal property” means personal property that may be\nseen, weighed, measured, felt, or touched, or is in any other manner perceptible\nto the senses. “Tangible personal property” does not include stocks,\nbonds, notes, insurance or other obligations or securities. “Tangible\npersonal property” includes (i) telephone calling cards upon their initial\nsale, which shall be exempt from all other state and local utility taxes, and\n(ii) manufactured signs.\n\t\t\t“Use” means the exercise of any right or power over tangible\npersonal property incident to the ownership thereof, except that it does not\ninclude the sale at retail of that property in the regular course of business.\n“Use” does not include the exercise of any right or power, including\nuse, distribution, or storage, over any tangible personal property sold to a\nnonresident donor for delivery outside of the Commonwealth to a nonresident\nrecipient pursuant to an order placed by the donor from outside the Commonwealth\nvia mail or telephone. “Use” does not include any sale determined to\nbe a gift transaction, subject to tax under § 58.1-604.6.\n\t\t\t“Use tax” refers to the tax imposed upon the use, consumption,\ndistribution, and storage as defined in this section.\n\t\t\t“Used directly,” when used in relation to manufacturing,\nprocessing, refining, or conversion, refers to those activities that are an\nintegral part of the production of a product, including all steps of an\nintegrated manufacturing or mining process, but not including ancillary\nactivities such as general maintenance or administration. When used in relation\nto mining, “used directly” refers to the activities specified in\nthis definition and, in addition, any reclamation activity of the land\npreviously mined by the mining company required by state or federal law.\n\t\t\t“Video programmer” means a person that provides video programming\nto end-user subscribers.\n\t\t\t“Video programming” means video and\/or information programming\nprovided by or generally considered comparable to programming provided by a\ncable operator, including, but not limited to, Internet service.\n\nHISTORY: Code 1950, \u00a7\u00a7 58-441.2, 58-441.3, 58-441.6; 1966, c. 151; 1972, c.\n680; 1973, c. 313; 1974, c. 431; 1976, cc. 375, 489, 666, 712, 764, 770; 1977,\ncc. 247, 504; 1978, cc. 50, 82, 181, 505, 656, 665, 706, 784, 819; 1979, cc.\n148, 205, 555, 556, 557, 558, 561, 562, 564, 572, 575; 1980, cc. 81, 610, 611,\n617, 618, 621, 631, 753, 756; 1981, cc. 398, 400, 405, 409, 416, 599; 1982, cc.\n533, 546, 547, 636, 649; 1983, cc. 100, 184, 384, 414, 557, 565, 599; 1984, cc.\n419, 522, 675, 683, 690, 693; 1985, c. 473; 1986, c. 22; 1988, c. 899; 1989, cc.\n581, 739; 1995, c. 96; 1999, cc. 138, 187, 723, 981; 2000, c. 425; 2004, c. 60;\n2005, cc. 121, 122, 355; 2006, cc. 519, 541, 568, 602; 2007, c. 751; 2013, cc.\n766, 783; 2014, c. 359; 2015, c. 252; 2017, c. 104; 2018, cc. 838, 840; 2019,\ncc. 815, 816, 854; 2020, cc. 327, 427, 428, 705, 708, 865; 2021, Sp. Sess. I, c.\n383; 2022, cc. 7, 154, 434, 435, 640.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}