{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-608.3.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-608.3.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-608.3.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-608.3.html"}],"law_id":67607,"edition_id":1,"section_id":67607,"structure_id":12899,"section_number":"58.1-608.3","catch_line":"Entitlement to certain sales tax revenues","history":"1995, c. 173; 1996, cc. 105, 819; 1998, cc. 492, 497; 1999, cc. 141, 184; 2000, c. 474; 2001, c. 522; 2004, cc. 506, 566, 568; 2006, cc. 581, 608; 2009, cc. 7, 47, 93, 499, 836; 2011, c. 274; 2012, cc. 678, 789, 830; 2013, cc. 568, 724, 766; 2014, cc. 551, 718; 2018, c. 25; 2020, cc. 62, 329, 1230, 1275.","full_text":"A\n\nAs used in this section, the following words and terms have the following meanings, unless some other meaning is plainly intended:\n\t\t\t“Bonds” means any obligations of a municipality for the payment of money.\n\t\t\t“Cost,” as applied to any public facility or to extensions or additions to any public facility, includes: (i) the purchase price of any public facility acquired by the municipality or the cost of acquiring all of the capital stock of the corporation owning the public facility and the amount to be paid to discharge any obligations in order to vest title to the public facility or any part of it in the municipality; (ii) expenses incident to determining the feasibility or practicability of the public facility; (iii) the cost of plans and specifications, surveys and estimates of costs and of revenues; (iv) the cost of all land, property, rights, easements and franchises acquired; (v) the cost of improvements, property or equipment; (vi) the cost of engineering, legal and other professional services; (vii) the cost of construction or reconstruction; (viii) the cost of all labor, materials, machinery and equipment; (ix) financing charges; (x) interest before and during construction and for up to one year after completion of construction; (xi) start-up costs and operating capital; (xii) payments by a municipality of its share of the cost of any multijurisdictional public facility; (xiii) administrative expense; (xiv) any amounts to be deposited to reserve or replacement funds; and (xv) other expenses as may be necessary or incident to the financing of the public facility. Any obligation or expense incurred by the public facility in connection with any of the foregoing items of cost may be regarded as a part of the cost.\n\t\t\t“Municipality” means any county, city, town, authority, commission, or other public entity.\n\t\t\t“Public facility” means (i) any auditorium, coliseum, convention center, or conference center, which is owned by a Virginia county, city, town, authority, or other public entity and where exhibits, meetings, conferences, conventions, seminars, or similar public events may be conducted; (ii) any hotel which is owned by a foundation whose sole purpose is to benefit a baccalaureate public institution of higher education in the Commonwealth and which is attached to and is an integral part of such facility, together with any lands reasonably necessary for the conduct of the operation of such events; (iii) any hotel which is attached to and is an integral part of such facility; (iv) any hotel that is adjacent to a convention center owned by a public entity and where the hotel owner enters into a public-private partnership whereby the locality contributes infrastructure, real property, or conference space; (v) a sports complex consisting of a minor league baseball stadium and related tournament, training, and parking facilities, where a municipality owns a component of the sports complex; or (vi) any outdoor amphitheater, provided that a locality owns, wholly or partly, and contributes to financing the construction of such amphitheater. However, such public facility must be located in the City of Chesapeake, City of Fredericksburg, City of Hampton, City of Lynchburg, City of Newport News, City of Norfolk, City of Portsmouth, City of Richmond, City of Roanoke, City of Salem, City of Staunton, City of Suffolk, City of Virginia Beach, City of Winchester, or Town of Wise. Any property, real, personal, or mixed, which is necessary or desirable in connection with any such auditorium, coliseum, convention center, sports complex, or conference center, including, without limitation, facilities for food preparation and serving, parking facilities, and office space, is encompassed within this definition. However, structures commonly referred to as “shopping centers” or “malls” shall not constitute a public facility hereunder. A public facility shall not include residential condominiums, townhomes, or other residential units. In addition, only a new public facility, or a public facility which will undergo a substantial and significant renovation or expansion, shall be eligible under subsection C. A new public facility is one whose construction began after December 31, 1991. A substantial and significant renovation entails a project whose cost is at least 50 percent of the original cost of the facility being renovated and shall have begun after December 31, 1991. A substantial and significant expansion entails an increase in floor space of at least 50 percent over that existing in the preexisting facility and shall have begun after December 31, 1991; or an increase in floor space of at least 10 percent over that existing in a public facility that qualified as such under this section and was constructed after December 31, 1991.\n\t\t\t“Sales tax revenues” means such tax collections realized under the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.), as limited herein. “Sales tax revenues” does not include the revenue generated by (i) the 0.5 percent sales and use tax increase enacted by the 1986 Special Session of the General Assembly which shall be paid to the Commonwealth Transportation Fund established pursuant to § 33.2-1524, (ii) the 1.0 percent of the state sales and use tax revenue distributed among the counties and cities of the Commonwealth pursuant to subsection D of § 58.1-638 on the basis of school age population, or (iii) any sales and use tax revenues generated by increases or allocation changes imposed by the 2013 Session of the General Assembly.B\n\nNotwithstanding the definition of “public facility” in subsection A, a development project that meets the requirements for a “development of regional impact” set forth herein shall be deemed to be a public facility under the provisions of this section. The locality in which the public facility is located shall be entitled to all sales tax revenues generated by transactions taking place at such public facility solely to pay the cost of any bonds issued to pay the cost, or portion thereof, of such public facility pursuant to subsection C. For purposes of this subsection, the development of regional impact must be located in the City of Bristol.\n\t\t\tFor purposes of this subsection, a “development of regional impact” means a development project (i) towards which the locality contributes infrastructure or real property as part of a public-private partnership with the developer that is equal to at least 20 percent of the aggregate cost of development, (ii) that is reasonably expected to require a capital investment of at least $50 million, (iii) that is reasonably expected to generate at least $5 million annually in state sales and use tax revenue from sales within the development, (iv) that is reasonably expected to attract at least one million visitors annually, (v) that is reasonably expected to create at least 2,000 permanent jobs, (vi) that is located in a locality that had a rate of unemployment at least three percentage points higher than the statewide average in November 2011, and (vii) that is located in a locality that is adjacent to a state that has adopted a Border Region Retail Tourism Development District Act. Within 30 days from the date of notification by a locality that it intends to contribute infrastructure or real property as part of a public-private partnership with the developer of a development of regional impact, the Department of Taxation shall review the findings of the locality with respect to clauses (i) through (vi) and shall file a written report with the Chairmen of the House Committee on Finance, the House Committee on Appropriations, and the Senate Committee on Finance and Appropriations.C\n\nAny municipality which has issued bonds (i) after December 31, 1991, but before January 1, 1996, (ii) on or after January 1, 1998, but before July 1, 1999, (iii) on or after January 1, 1999, but before July 1, 2001, (iv) on or after July 1, 2000, but before July 1, 2003, (v) on or after July 1, 2001, but before July 1, 2005, (vi) on or after July 1, 2004, but before July 1, 2007, (vii) on or after July 1, 2009, but before July 1, 2012, (viii) on or after January 1, 2011, but prior to July 1, 2015, or (ix) on or after January 1, 2013, but prior to July 1, 2024, to pay the cost, or portion thereof, of any public facility shall be entitled to all sales tax revenues generated by transactions taking place in such public facility. In the case of a public facility described in clause (v) of the definition of public facility, all such sales tax revenues shall be applied solely to repayment of the bonds issued to pay the cost, or portion thereof, of the municipality-owned component of the sports complex. Such entitlement shall continue for the lifetime of such bonds, or any refinancing or refunding thereof, but in no event shall such entitlement exceed 35 years from the initial date that any bonds were issued to pay the cost, or a portion thereof, of any public facility, and all such sales tax revenues shall be applied to repayment of the bonds. The State Comptroller shall remit such sales tax revenues to the municipality on a quarterly basis, subject to such reasonable processing delays as may be required by the Department of Taxation to calculate the actual net sales tax revenues derived from the public facility. The State Comptroller shall make such remittances to eligible municipalities, as provided herein, notwithstanding any provisions to the contrary in the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.). No such remittances shall be made until construction is completed and, in the case of a renovation or expansion, until the governing body of the municipality has certified that the renovation or expansion is completed; however, in the case of any public facility consisting of more than one building or structure, such remittances shall be made on a quarterly basis beginning with the first quarter in which any sales tax revenue is generated by transactions taking place at any building or structure within such public facility, whether or not construction of all or any portion, phase, building, or structure of such public facility has been completed.D\n\nNothing in this section shall be construed as authorizing the pledging of the faith and credit of the Commonwealth of Virginia, or any of its revenues, for the payment of any bonds. Any appropriation made pursuant to this section shall be made only from sales tax revenues derived from the public facility for which bonds may have been issued to pay the cost, in whole or in part, of such public facility.","order_by":null,"text":{"0":{"id":244934,"text":"As used in this section, the following words and terms have the following meanings, unless some other meaning is plainly intended:\n\t\t\t“Bonds” means any obligations of a municipality for the payment of money.\n\t\t\t“Cost,” as applied to any public facility or to extensions or additions to any public facility, includes: (i) the purchase price of any public facility acquired by the municipality or the cost of acquiring all of the capital stock of the corporation owning the public facility and the amount to be paid to discharge any obligations in order to vest title to the public facility or any part of it in the municipality; (ii) expenses incident to determining the feasibility or practicability of the public facility; (iii) the cost of plans and specifications, surveys and estimates of costs and of revenues; (iv) the cost of all land, property, rights, easements and franchises acquired; (v) the cost of improvements, property or equipment; (vi) the cost of engineering, legal and other professional services; (vii) the cost of construction or reconstruction; (viii) the cost of all labor, materials, machinery and equipment; (ix) financing charges; (x) interest before and during construction and for up to one year after completion of construction; (xi) start-up costs and operating capital; (xii) payments by a municipality of its share of the cost of any multijurisdictional public facility; (xiii) administrative expense; (xiv) any amounts to be deposited to reserve or replacement funds; and (xv) other expenses as may be necessary or incident to the financing of the public facility. Any obligation or expense incurred by the public facility in connection with any of the foregoing items of cost may be regarded as a part of the cost.\n\t\t\t“Municipality” means any county, city, town, authority, commission, or other public entity.\n\t\t\t“Public facility” means (i) any auditorium, coliseum, convention center, or conference center, which is owned by a Virginia county, city, town, authority, or other public entity and where exhibits, meetings, conferences, conventions, seminars, or similar public events may be conducted; (ii) any hotel which is owned by a foundation whose sole purpose is to benefit a baccalaureate public institution of higher education in the Commonwealth and which is attached to and is an integral part of such facility, together with any lands reasonably necessary for the conduct of the operation of such events; (iii) any hotel which is attached to and is an integral part of such facility; (iv) any hotel that is adjacent to a convention center owned by a public entity and where the hotel owner enters into a public-private partnership whereby the locality contributes infrastructure, real property, or conference space; (v) a sports complex consisting of a minor league baseball stadium and related tournament, training, and parking facilities, where a municipality owns a component of the sports complex; or (vi) any outdoor amphitheater, provided that a locality owns, wholly or partly, and contributes to financing the construction of such amphitheater. However, such public facility must be located in the City of Chesapeake, City of Fredericksburg, City of Hampton, City of Lynchburg, City of Newport News, City of Norfolk, City of Portsmouth, City of Richmond, City of Roanoke, City of Salem, City of Staunton, City of Suffolk, City of Virginia Beach, City of Winchester, or Town of Wise. Any property, real, personal, or mixed, which is necessary or desirable in connection with any such auditorium, coliseum, convention center, sports complex, or conference center, including, without limitation, facilities for food preparation and serving, parking facilities, and office space, is encompassed within this definition. However, structures commonly referred to as “shopping centers” or “malls” shall not constitute a public facility hereunder. A public facility shall not include residential condominiums, townhomes, or other residential units. In addition, only a new public facility, or a public facility which will undergo a substantial and significant renovation or expansion, shall be eligible under subsection C. A new public facility is one whose construction began after December 31, 1991. A substantial and significant renovation entails a project whose cost is at least 50 percent of the original cost of the facility being renovated and shall have begun after December 31, 1991. A substantial and significant expansion entails an increase in floor space of at least 50 percent over that existing in the preexisting facility and shall have begun after December 31, 1991; or an increase in floor space of at least 10 percent over that existing in a public facility that qualified as such under this section and was constructed after December 31, 1991.\n\t\t\t“Sales tax revenues” means such tax collections realized under the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.), as limited herein. “Sales tax revenues” does not include the revenue generated by (i) the 0.5 percent sales and use tax increase enacted by the 1986 Special Session of the General Assembly which shall be paid to the Commonwealth Transportation Fund established pursuant to § 33.2-1524, (ii) the 1.0 percent of the state sales and use tax revenue distributed among the counties and cities of the Commonwealth pursuant to subsection D of § 58.1-638 on the basis of school age population, or (iii) any sales and use tax revenues generated by increases or allocation changes imposed by the 2013 Session of the General Assembly.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":244935,"text":"Notwithstanding the definition of “public facility” in subsection A, a development project that meets the requirements for a “development of regional impact” set forth herein shall be deemed to be a public facility under the provisions of this section. The locality in which the public facility is located shall be entitled to all sales tax revenues generated by transactions taking place at such public facility solely to pay the cost of any bonds issued to pay the cost, or portion thereof, of such public facility pursuant to subsection C. For purposes of this subsection, the development of regional impact must be located in the City of Bristol.\n\t\t\tFor purposes of this subsection, a “development of regional impact” means a development project (i) towards which the locality contributes infrastructure or real property as part of a public-private partnership with the developer that is equal to at least 20 percent of the aggregate cost of development, (ii) that is reasonably expected to require a capital investment of at least $50 million, (iii) that is reasonably expected to generate at least $5 million annually in state sales and use tax revenue from sales within the development, (iv) that is reasonably expected to attract at least one million visitors annually, (v) that is reasonably expected to create at least 2,000 permanent jobs, (vi) that is located in a locality that had a rate of unemployment at least three percentage points higher than the statewide average in November 2011, and (vii) that is located in a locality that is adjacent to a state that has adopted a Border Region Retail Tourism Development District Act. Within 30 days from the date of notification by a locality that it intends to contribute infrastructure or real property as part of a public-private partnership with the developer of a development of regional impact, the Department of Taxation shall review the findings of the locality with respect to clauses (i) through (vi) and shall file a written report with the Chairmen of the House Committee on Finance, the House Committee on Appropriations, and the Senate Committee on Finance and Appropriations.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":244936,"text":"Any municipality which has issued bonds (i) after December 31, 1991, but before January 1, 1996, (ii) on or after January 1, 1998, but before July 1, 1999, (iii) on or after January 1, 1999, but before July 1, 2001, (iv) on or after July 1, 2000, but before July 1, 2003, (v) on or after July 1, 2001, but before July 1, 2005, (vi) on or after July 1, 2004, but before July 1, 2007, (vii) on or after July 1, 2009, but before July 1, 2012, (viii) on or after January 1, 2011, but prior to July 1, 2015, or (ix) on or after January 1, 2013, but prior to July 1, 2024, to pay the cost, or portion thereof, of any public facility shall be entitled to all sales tax revenues generated by transactions taking place in such public facility. In the case of a public facility described in clause (v) of the definition of public facility, all such sales tax revenues shall be applied solely to repayment of the bonds issued to pay the cost, or portion thereof, of the municipality-owned component of the sports complex. Such entitlement shall continue for the lifetime of such bonds, or any refinancing or refunding thereof, but in no event shall such entitlement exceed 35 years from the initial date that any bonds were issued to pay the cost, or a portion thereof, of any public facility, and all such sales tax revenues shall be applied to repayment of the bonds. The State Comptroller shall remit such sales tax revenues to the municipality on a quarterly basis, subject to such reasonable processing delays as may be required by the Department of Taxation to calculate the actual net sales tax revenues derived from the public facility. The State Comptroller shall make such remittances to eligible municipalities, as provided herein, notwithstanding any provisions to the contrary in the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.). No such remittances shall be made until construction is completed and, in the case of a renovation or expansion, until the governing body of the municipality has certified that the renovation or expansion is completed; however, in the case of any public facility consisting of more than one building or structure, such remittances shall be made on a quarterly basis beginning with the first quarter in which any sales tax revenue is generated by transactions taking place at any building or structure within such public facility, whether or not construction of all or any portion, phase, building, or structure of such public facility has been completed.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":244937,"text":"Nothing in this section shall be construed as authorizing the pledging of the faith and credit of the Commonwealth of Virginia, or any of its revenues, for the payment of any bonds. Any appropriation made pursuant to this section shall be made only from sales tax revenues derived from the public facility for which bonds may have been issued to pay the cost, in whole or in part, of such public facility.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"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 03:43:59","permalink":{"id":254543,"object_type":"structure","relational_id":12899,"identifier":"6","token":"58.1\/I\/6","url":"\/58.1\/I\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 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holiday","url":"\/58.1-639.1\/","token":"58.1\/I\/6\/58.1-639.1","metadata":false}],"previous_section":{"id":87400,"structure_id":12899,"section_number":"58.1-608.2","catch_line":"Repealed","url":"\/58.1-608.2\/","token":"58.1\/I\/6\/58.1-608.2","metadata":false},"next_section":{"id":58026,"structure_id":12899,"section_number":"58.1-608.4","catch_line":"Suspension of exemption","url":"\/58.1-608.4\/","token":"58.1\/I\/6\/58.1-608.4","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-608.3\/","history_text":"

This law was first created in 1995. The record of its establishment is cataloged in chapter 173<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 14 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 1996, chapters 105<\/a> and 819<\/a>; in 1998, chapters 492<\/a> and 497<\/a>; in 1999, chapters 141<\/a> and 184<\/a>; in 2000, chapter 474<\/a>; in 2001, chapter 522<\/a>; in 2004, chapters 506<\/a>, 566<\/a>, and 568<\/a>; in 2006, chapters 581<\/a> and 608<\/a>; in 2009, chapters 7<\/a>, 47<\/a>, 93<\/a>, 499<\/a>, and 836<\/a>; in 2011, chapter 274<\/a>; in 2012, chapters 678<\/a>, 789<\/a>, and 830<\/a>; in 2013, chapters 568<\/a>, 724<\/a>, and 766<\/a>; in 2014, chapters 551<\/a> and 718<\/a>; in 2018, chapter 25<\/a>; in 2020, chapters 62<\/a>, 329<\/a>, 1230<\/a>, and 1275<\/a>.<\/p>","references":[{"id":73135,"section_number":"58.1-3851.1","catch_line":"Entitlement to tax revenues from tourism project","order_by":null,"url":"\/58.1-3851.1\/"},{"id":85374,"section_number":"58.1-3851.2","catch_line":"Entitlement to tax revenues from tourism project of regional significance","order_by":null,"url":"\/58.1-3851.2\/"},{"id":78617,"section_number":"58.1-3851.3","catch_line":"Entitlement to tax revenues from a major tourism project","order_by":null,"url":"\/58.1-3851.3\/"}],"refers_to":[{"id":72795,"section_number":"33.2-1524","catch_line":"Commonwealth Transportation Fund","order_by":null,"url":"\/33.2-1524\/"},{"id":63208,"section_number":"58.1-600","catch_line":"Short title","order_by":null,"url":"\/58.1-600\/"},{"id":71974,"section_number":"58.1-638","catch_line":"Disposition of state sales and use tax revenue","order_by":null,"url":"\/58.1-638\/"}],"permalink":{"id":254633,"object_type":"law","relational_id":67607,"identifier":"58.1-608.3","token":"58.1\/I\/6\/58.1-608.3","url":"\/58.1-608.3\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-608.3\/","token":"58.1\/I\/6\/58.1-608.3","dublin_core":{"Title":"Entitlement to certain sales tax revenues","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-608.3","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, the following words and terms have the following meanings, unless some other meaning is plainly intended:\n\t\t\t“Bonds<\/span><\/span>” means any obligations of a municipality<\/span> for the payment of money.\n\t\t\t“Cost,” as applied to any public facility<\/span> or to extensions or additions to any public facility<\/span>, includes: (i) the purchase price of any public facility<\/span> acquired by the municipality<\/span> or the cost of acquiring all of the capital stock of the corporation owning the public facility<\/span> and the amount to be paid to discharge any obligations in order<\/span> to vest title to the public facility<\/span> or any part of it in the municipality<\/span>; (ii) expenses incident to determining the feasibility or practicability of the public facility<\/span>; (iii) the cost of plans and specifications, surveys and estimates of costs and of revenues; (iv) the cost of all land, property, rights, easements and franchises acquired; (v) the cost of improvements, property or equipment; (vi) the cost of engineering, legal and other professional services; (vii) the cost of construction or reconstruction; (viii) the cost of all labor, materials<\/span>, machinery and equipment; (ix) financing charges; (x) interest before and during construction and for up to one year after completion of construction; (xi) start-up costs and operating capital; (xii) payments by a municipality<\/span> of its share of the cost of any multijurisdictional public facility<\/span>; (xiii) administrative expense; (xiv) any amounts to be deposited to reserve or replacement funds; and (xv) other expenses as may be necessary or incident to the financing of the public facility<\/span>. Any obligation or expense incurred by the public facility<\/span> in connection with any of the foregoing items of cost may be regarded as a part of the cost.\n\t\t\t“Municipality<\/span>” means any county, city, town, authority, commission, or other public entity.\n\t\t\t“Public facility<\/span>” means (i) any auditorium, coliseum, convention center, or conference center, which is owned by a Virginia county, city, town, authority, or other public entity and where exhibits, meetings, conferences, conventions, seminars, or similar public events may be conducted; (ii) any hotel which is owned by a foundation whose sole purpose is to benefit a baccalaureate public institution of higher education in the Commonwealth<\/span> and which is attached to and is an integral part of such facility, together with any lands reasonably necessary for the conduct of the operation of such events; (iii) any hotel which is attached to and is an integral part of such facility; (iv) any hotel that is adjacent to a convention center owned by a public entity and where the hotel owner enters into a public-private partnership whereby the locality contributes infrastructure, real property, or conference space; (v) a sports complex consisting of a minor<\/span> league baseball stadium and related tournament, training, and parking facilities, where a municipality<\/span> owns a component of the sports complex; or (vi) any outdoor amphitheater, provided that a locality owns, wholly or partly, and contributes to financing the construction of such amphitheater. However, such public facility<\/span> must be located in the City of Chesapeake, City of Fredericksburg, City of Hampton, City of Lynchburg, City of Newport News, City of Norfolk, City of Portsmouth, City of Richmond, City of Roanoke, City of Salem, City of Staunton, City of Suffolk, City of Virginia Beach, City of Winchester, or Town of Wise. Any property, real, personal, or mixed, which is necessary or desirable in connection with any such auditorium, coliseum, convention center, sports complex, or conference center, including, without limitation, facilities for food preparation and serving, parking facilities, and office space, is encompassed within this definition. However, structures commonly referred to as “shopping centers<\/span>” or “malls<\/span>” shall not constitute a public facility<\/span> hereunder. A public facility<\/span> shall not include residential condominiums, townhomes, or other residential units. In addition, only a new public facility<\/span>, or a public facility<\/span> which will undergo a substantial and significant renovation or expansion, shall be eligible under subsection C. A new public facility<\/span> is one whose construction began after December 31, 1991. A substantial and significant renovation entails a project whose cost is at least 50 percent of the original cost of the facility being renovated and shall have begun after December 31, 1991. A substantial and significant expansion entails an increase in floor space of at least 50 percent over that existing in the preexisting facility and shall have begun after December 31, 1991; or an increase in floor space of at least 10 percent over that existing in a public facility<\/span> that qualified as such under this section and was constructed after December 31, 1991.\n\t\t\t“Sales tax revenues<\/span>” means such tax collections realized under the Virginia Retail Sales<\/span> and Use<\/span> Tax Act (§ 58.1-600<\/a> et seq.), as limited herein. “Sales tax revenues<\/span>” does not include the revenue generated by (i) the 0.5 percent sales and use<\/span> tax increase enacted by the 1986 Special Session of the General Assembly which shall be paid to the Commonwealth Transportation Fund established pursuant to § 33.2-1524<\/a>, (ii) the 1.0 percent of the state sales and use<\/span> tax revenue distributed among the counties and cities of the Commonwealth pursuant to subsection D of § 58.1-638<\/a> on the basis of school age population, or (iii) any sales and use<\/span> tax revenues generated by increases or allocation changes imposed by the 2013 Session of the General Assembly. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding the definition of “public facility<\/span>” in subsection A, a development project that meets the requirements for a “development of regional impact<\/span>” set forth herein shall be deemed to be a public facility<\/span> under the provisions of this section. The locality in which the public facility<\/span> is located shall be entitled to all sales tax revenues<\/span> generated by transactions taking place at such public facility<\/span> solely to pay the cost of any bonds<\/span><\/span> issued to pay the cost, or portion thereof, of such public facility<\/span> pursuant to subsection C. For purposes of this subsection, the development of regional impact<\/span> must be located in the City of Bristol.\n\t\t\tFor purposes of this subsection, a “development of regional impact<\/span>” means a development project (i) towards which the locality contributes infrastructure or real property as part of a public-private partnership with the developer that is equal to at least 20 percent of the aggregate cost of development, (ii) that is reasonably expected to require a capital investment of at least $50 million, (iii) that is reasonably expected to generate at least $5 million annually in state sales and use<\/span> tax revenue from sales within the development, (iv) that is reasonably expected to attract at least one million visitors annually, (v) that is reasonably expected to create at least 2,000 permanent jobs, (vi) that is located in a locality that had a rate of unemployment at least three percentage points higher than the statewide average in November 2011, and (vii) that is located in a locality that is adjacent to a state that has adopted a Border Region Retail Tourism Development District Act. Within 30 days from the date of notification by a locality that it intends to contribute infrastructure or real property as part of a public-private partnership with the developer of a development of regional impact<\/span>, the Department<\/span> of Taxation shall review the findings<\/span> of the locality with respect to clauses (i) through (vi) and shall file a written report with the Chairmen of the House Committee on Finance, the House Committee on Appropriations, and the Senate Committee on Finance and Appropriations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any municipality<\/span> which has issued bonds<\/span><\/span> (i) after December 31, 1991, but before January 1, 1996, (ii) on or after January 1, 1998, but before July 1, 1999, (iii) on or after January 1, 1999, but before July 1, 2001, (iv) on or after July 1, 2000, but before July 1, 2003, (v) on or after July 1, 2001, but before July 1, 2005, (vi) on or after July 1, 2004, but before July 1, 2007, (vii) on or after July 1, 2009, but before July 1, 2012, (viii) on or after January 1, 2011, but prior to July 1, 2015, or (ix) on or after January 1, 2013, but prior to July 1, 2024, to pay the cost, or portion thereof, of any public facility<\/span> shall be entitled to all sales tax revenues<\/span> generated by transactions taking place in such public facility<\/span>. In the case of a public facility<\/span> described in clause (v) of the definition of public facility<\/span>, all such sales tax revenues<\/span> shall be applied solely to repayment of the bonds<\/span><\/span> issued to pay the cost, or portion thereof, of the municipality<\/span>-owned component of the sports complex. Such entitlement shall continue for the lifetime of such bonds<\/span><\/span>, or any refinancing or refunding thereof, but in no event shall such entitlement exceed 35 years from the initial date that any bonds<\/span><\/span> were issued to pay the cost, or a portion thereof, of any public facility<\/span>, and all such sales tax revenues<\/span> shall be applied to repayment of the bonds<\/span><\/span>. The State Comptroller shall remit such sales tax revenues<\/span> to the municipality<\/span> on a quarterly basis, subject to such reasonable processing delays as may be required by the Department<\/span> of Taxation to calculate the actual net sales tax revenues<\/span> derived from the public facility<\/span>. The State Comptroller shall make such remittances to eligible municipalities, as provided herein, notwithstanding any provisions to the contrary in the Virginia Retail Sales<\/span> and Use<\/span> Tax Act (§ 58.1-600<\/a> et seq.). No such remittances shall be made until construction is completed and, in the case of a renovation or expansion, until the governing body of the municipality<\/span> has certified that the renovation or expansion is completed; however, in the case of any public facility<\/span> consisting of more than one building or structure, such remittances shall be made on a quarterly basis beginning with the first quarter in which any sales tax revenue is generated by transactions taking place at any building or structure within such public facility<\/span>, whether or not construction of all or any portion, phase, building, or structure of such public facility<\/span> has been completed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Nothing in this section shall be construed as authorizing the pledging of the faith and credit of the Commonwealth of Virginia, or any of its revenues, for the payment of any bonds<\/span><\/span>. Any appropriation made pursuant to this section shall be made only from sales tax revenues<\/span> derived from the public facility<\/span> for which bonds<\/span><\/span> may have been issued to pay the cost, in whole or in part, of such public facility<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nENTITLEMENT TO CERTAIN SALES TAX REVENUES (\u00a7 58.1-608.3)\n\nA. As used in this section, the following words and terms have the following\nmeanings, unless some other meaning is plainly intended:\n\t\t\t“Bonds” means any obligations of a municipality for the payment\nof money.\n\t\t\t“Cost,” as applied to any public facility or to extensions or\nadditions to any public facility, includes: (i) the purchase price of any public\nfacility acquired by the municipality or the cost of acquiring all of the\ncapital stock of the corporation owning the public facility and the amount to be\npaid to discharge any obligations in order to vest title to the public facility\nor any part of it in the municipality; (ii) expenses incident to determining the\nfeasibility or practicability of the public facility; (iii) the cost of plans\nand specifications, surveys and estimates of costs and of revenues; (iv) the\ncost of all land, property, rights, easements and franchises acquired; (v) the\ncost of improvements, property or equipment; (vi) the cost of engineering, legal\nand other professional services; (vii) the cost of construction or\nreconstruction; (viii) the cost of all labor, materials, machinery and\nequipment; (ix) financing charges; (x) interest before and during construction\nand for up to one year after completion of construction; (xi) start-up costs and\noperating capital; (xii) payments by a municipality of its share of the cost of\nany multijurisdictional public facility; (xiii) administrative expense; (xiv)\nany amounts to be deposited to reserve or replacement funds; and (xv) other\nexpenses as may be necessary or incident to the financing of the public\nfacility. Any obligation or expense incurred by the public facility in\nconnection with any of the foregoing items of cost may be regarded as a part of\nthe cost.\n\t\t\t“Municipality” means any county, city, town, authority,\ncommission, or other public entity.\n\t\t\t“Public facility” means (i) any auditorium, coliseum, convention\ncenter, or conference center, which is owned by a Virginia county, city, town,\nauthority, or other public entity and where exhibits, meetings, conferences,\nconventions, seminars, or similar public events may be conducted; (ii) any hotel\nwhich is owned by a foundation whose sole purpose is to benefit a baccalaureate\npublic institution of higher education in the Commonwealth and which is attached\nto and is an integral part of such facility, together with any lands reasonably\nnecessary for the conduct of the operation of such events; (iii) any hotel which\nis attached to and is an integral part of such facility; (iv) any hotel that is\nadjacent to a convention center owned by a public entity and where the hotel\nowner enters into a public-private partnership whereby the locality contributes\ninfrastructure, real property, or conference space; (v) a sports complex\nconsisting of a minor league baseball stadium and related tournament, training,\nand parking facilities, where a municipality owns a component of the sports\ncomplex; or (vi) any outdoor amphitheater, provided that a locality owns, wholly\nor partly, and contributes to financing the construction of such amphitheater.\nHowever, such public facility must be located in the City of Chesapeake, City of\nFredericksburg, City of Hampton, City of Lynchburg, City of Newport News, City\nof Norfolk, City of Portsmouth, City of Richmond, City of Roanoke, City of\nSalem, City of Staunton, City of Suffolk, City of Virginia Beach, City of\nWinchester, or Town of Wise. Any property, real, personal, or mixed, which is\nnecessary or desirable in connection with any such auditorium, coliseum,\nconvention center, sports complex, or conference center, including, without\nlimitation, facilities for food preparation and serving, parking facilities, and\noffice space, is encompassed within this definition. However, structures\ncommonly referred to as “shopping centers” or “malls”\nshall not constitute a public facility hereunder. A public facility shall not\ninclude residential condominiums, townhomes, or other residential units. In\naddition, only a new public facility, or a public facility which will undergo a\nsubstantial and significant renovation or expansion, shall be eligible under\nsubsection C. A new public facility is one whose construction began after\nDecember 31, 1991. A substantial and significant renovation entails a project\nwhose cost is at least 50 percent of the original cost of the facility being\nrenovated and shall have begun after December 31, 1991. A substantial and\nsignificant expansion entails an increase in floor space of at least 50 percent\nover that existing in the preexisting facility and shall have begun after\nDecember 31, 1991; or an increase in floor space of at least 10 percent over\nthat existing in a public facility that qualified as such under this section and\nwas constructed after December 31, 1991.\n\t\t\t“Sales tax revenues” means such tax collections realized under\nthe Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.), as limited\nherein. “Sales tax revenues” does not include the revenue generated\nby (i) the 0.5 percent sales and use tax increase enacted by the 1986 Special\nSession of the General Assembly which shall be paid to the Commonwealth\nTransportation Fund established pursuant to § 33.2-1524, (ii) the 1.0\npercent of the state sales and use tax revenue distributed among the counties\nand cities of the Commonwealth pursuant to subsection D of § 58.1-638 on\nthe basis of school age population, or (iii) any sales and use tax revenues\ngenerated by increases or allocation changes imposed by the 2013 Session of the\nGeneral Assembly.\n\nB. Notwithstanding the definition of “public facility” in subsection\nA, a development project that meets the requirements for a “development of\nregional impact” set forth herein shall be deemed to be a public facility\nunder the provisions of this section. The locality in which the public facility\nis located shall be entitled to all sales tax revenues generated by transactions\ntaking place at such public facility solely to pay the cost of any bonds issued\nto pay the cost, or portion thereof, of such public facility pursuant to\nsubsection C. For purposes of this subsection, the development of regional\nimpact must be located in the City of Bristol.\n\t\t\tFor purposes of this subsection, a “development of regional\nimpact” means a development project (i) towards which the locality\ncontributes infrastructure or real property as part of a public-private\npartnership with the developer that is equal to at least 20 percent of the\naggregate cost of development, (ii) that is reasonably expected to require a\ncapital investment of at least $50 million, (iii) that is reasonably expected to\ngenerate at least $5 million annually in state sales and use tax revenue from\nsales within the development, (iv) that is reasonably expected to attract at\nleast one million visitors annually, (v) that is reasonably expected to create\nat least 2,000 permanent jobs, (vi) that is located in a locality that had a\nrate of unemployment at least three percentage points higher than the statewide\naverage in November 2011, and (vii) that is located in a locality that is\nadjacent to a state that has adopted a Border Region Retail Tourism Development\nDistrict Act. Within 30 days from the date of notification by a locality that it\nintends to contribute infrastructure or real property as part of a\npublic-private partnership with the developer of a development of regional\nimpact, the Department of Taxation shall review the findings of the locality\nwith respect to clauses (i) through (vi) and shall file a written report with\nthe Chairmen of the House Committee on Finance, the House Committee on\nAppropriations, and the Senate Committee on Finance and Appropriations.\n\nC. Any municipality which has issued bonds (i) after December 31, 1991, but\nbefore January 1, 1996, (ii) on or after January 1, 1998, but before July 1,\n1999, (iii) on or after January 1, 1999, but before July 1, 2001, (iv) on or\nafter July 1, 2000, but before July 1, 2003, (v) on or after July 1, 2001, but\nbefore July 1, 2005, (vi) on or after July 1, 2004, but before July 1, 2007,\n(vii) on or after July 1, 2009, but before July 1, 2012, (viii) on or after\nJanuary 1, 2011, but prior to July 1, 2015, or (ix) on or after January 1, 2013,\nbut prior to July 1, 2024, to pay the cost, or portion thereof, of any public\nfacility shall be entitled to all sales tax revenues generated by transactions\ntaking place in such public facility. In the case of a public facility described\nin clause (v) of the definition of public facility, all such sales tax revenues\nshall be applied solely to repayment of the bonds issued to pay the cost, or\nportion thereof, of the municipality-owned component of the sports complex. Such\nentitlement shall continue for the lifetime of such bonds, or any refinancing or\nrefunding thereof, but in no event shall such entitlement exceed 35 years from\nthe initial date that any bonds were issued to pay the cost, or a portion\nthereof, of any public facility, and all such sales tax revenues shall be\napplied to repayment of the bonds. The State Comptroller shall remit such sales\ntax revenues to the municipality on a quarterly basis, subject to such\nreasonable processing delays as may be required by the Department of Taxation to\ncalculate the actual net sales tax revenues derived from the public facility.\nThe State Comptroller shall make such remittances to eligible municipalities, as\nprovided herein, notwithstanding any provisions to the contrary in the Virginia\nRetail Sales and Use Tax Act (§ 58.1-600 et seq.). No such remittances\nshall be made until construction is completed and, in the case of a renovation\nor expansion, until the governing body of the municipality has certified that\nthe renovation or expansion is completed; however, in the case of any public\nfacility consisting of more than one building or structure, such remittances\nshall be made on a quarterly basis beginning with the first quarter in which any\nsales tax revenue is generated by transactions taking place at any building or\nstructure within such public facility, whether or not construction of all or any\nportion, phase, building, or structure of such public facility has been\ncompleted.\n\nD. Nothing in this section shall be construed as authorizing the pledging of the\nfaith and credit of the Commonwealth of Virginia, or any of its revenues, for\nthe payment of any bonds. Any appropriation made pursuant to this section shall\nbe made only from sales tax revenues derived from the public facility for which\nbonds may have been issued to pay the cost, in whole or in part, of such public\nfacility.\n\nHISTORY: 1995, c. 173; 1996, cc. 105, 819; 1998, cc. 492, 497; 1999, cc. 141,\n184; 2000, c. 474; 2001, c. 522; 2004, cc. 506, 566, 568; 2006, cc. 581, 608;\n2009, cc. 7, 47, 93, 499, 836; 2011, c. 274; 2012, cc. 678, 789, 830; 2013, cc.\n568, 724, 766; 2014, cc. 551, 718; 2018, c. 25; 2020, cc. 62, 329, 1230, 1275.","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}}