{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-623.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-623.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-623.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-623.1.html"}],"law_id":74769,"edition_id":1,"section_id":74769,"structure_id":12899,"section_number":"58.1-623.1","catch_line":"Misuse of exemption certificates; suspension of exemptions; penalties","history":"1989, c. 12; 1999, cc. 762, 776; 2002, c. 775; 2003, cc. 757, 758.","full_text":"A\n\nWhenever the Tax Commissioner determines that any person has misused an exemption certificate, the Tax Commissioner, after giving such person 10-days’ notice in writing specifying the time and place of hearing and requiring him to show cause why the exemption should not be suspended, may suspend the exemption held by such person. The notice may be personally served or served by registered mail directed to the last known address of such person.B\n\nAny person who knowingly uses or gives an exemption certificate during a period of suspension of an exemption under this section shall be guilty of a Class 1 misdemeanor.C\n\nIt shall be the duty of any person whose exemption is suspended under the provisions of this section to notify each dealer from whom purchases or leases of tangible personal property are made, of the suspension of its exemption, and of the invalidity of any exemption certificates filed with such dealers.D\n\nIn lieu of the suspension of a person’s exemption under subsection A, the Tax Commissioner may assess a penalty of up to $1,000 for the misuse of an exemption certificate by that person or by any other person who, with the consent or knowledge of the exemption holder, has misused the certificate. The penalty shall be assessed and collected as a part of the tax, and the person so assessed may appeal the penalty pursuant to the provisions of Article 2 (§ 58.1-1820 et seq.) of Chapter 18 of this title.E\n\nIn any instance in which the Tax Commissioner determines that there has been any misuse of an exemption certificate, the person holding the exemption shall be liable for the full amount of tax, and any interest thereon, applicable to any purchase improperly made with his exemption certificate.F\n\nThe suspension of the exemption shall require that the person pay the full amount of the tax at the time of purchase and apply for a refund of the tax so paid. No interest shall be paid on any such refund. Upon application of the person whose certificate has been suspended, the Tax Commissioner, for good cause shown, may reinstate the person’s certificate; however, any such suspension period shall run for at least one year.G\n\nNotwithstanding § 58.1-3, the Tax Commissioner may report any gross misuses of exemption certificates to the Secretary of Finance and the chairmen of the money committees, for their confidential use, prior to the beginning of the following session of the General Assembly.","order_by":null,"text":{"0":{"id":268694,"text":"Whenever the Tax Commissioner determines that any person has misused an exemption certificate, the Tax Commissioner, after giving such person 10-days’ notice in writing specifying the time and place of hearing and requiring him to show cause why the exemption should not be suspended, may suspend the exemption held by such person. The notice may be personally served or served by registered mail directed to the last known address of such person.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":268695,"text":"Any person who knowingly uses or gives an exemption certificate during a period of suspension of an exemption under this section shall be guilty of a Class 1 misdemeanor.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":268696,"text":"It shall be the duty of any person whose exemption is suspended under the provisions of this section to notify each dealer from whom purchases or leases of tangible personal property are made, of the suspension of its exemption, and of the invalidity of any exemption certificates filed with such dealers.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":268697,"text":"In lieu of the suspension of a person’s exemption under subsection A, the Tax Commissioner may assess a penalty of up to $1,000 for the misuse of an exemption certificate by that person or by any other person who, with the consent or knowledge of the exemption holder, has misused the certificate. The penalty shall be assessed and collected as a part of the tax, and the person so assessed may appeal the penalty pursuant to the provisions of Article 2 (§ 58.1-1820 et seq.) of Chapter 18 of this title.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":268698,"text":"In any instance in which the Tax Commissioner determines that there has been any misuse of an exemption certificate, the person holding the exemption shall be liable for the full amount of tax, and any interest thereon, applicable to any purchase improperly made with his exemption certificate.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":268699,"text":"The suspension of the exemption shall require that the person pay the full amount of the tax at the time of purchase and apply for a refund of the tax so paid. No interest shall be paid on any such refund. Upon application of the person whose certificate has been suspended, the Tax Commissioner, for good cause shown, may reinstate the person’s certificate; however, any such suspension period shall run for at least one year.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":268700,"text":"Notwithstanding § 58.1-3, the Tax Commissioner may report any gross misuses of exemption certificates to the Secretary of Finance and the chairmen of the money committees, for their confidential use, prior to the beginning of the following session of the General Assembly.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"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 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 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dealers' certificate of registration numbers","url":"\/58.1-623.01\/","token":"58.1\/I\/6\/58.1-623.01","metadata":false},"next_section":{"id":55956,"structure_id":12899,"section_number":"58.1-623.2","catch_line":"Cigarette exemption certificate","url":"\/58.1-623.2\/","token":"58.1\/I\/6\/58.1-623.2","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-623.1\/","history_text":"

This law was first created in 1989. The record of its establishment is cataloged in chapter 12 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. Unfortunately, the 1989 \u201cActs\u201d aren\u2019t available online. It has been modified 3 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 1999, chapters 762<\/a> and 776<\/a>; in 2002, chapter 775<\/a>; in 2003, chapters 757<\/a> and 758<\/a>.<\/p>","references":[{"id":58026,"section_number":"58.1-608.4","catch_line":"Suspension of exemption","order_by":null,"url":"\/58.1-608.4\/"},{"id":55956,"section_number":"58.1-623.2","catch_line":"Cigarette exemption certificate","order_by":null,"url":"\/58.1-623.2\/"}],"refers_to":[{"id":78490,"section_number":"58.1-1820","catch_line":"Definitions","order_by":null,"url":"\/58.1-1820\/"},{"id":57817,"section_number":"58.1-3","catch_line":"Secrecy of information; penalties","order_by":null,"url":"\/58.1-3\/"}],"permalink":{"id":254781,"object_type":"law","relational_id":74769,"identifier":"58.1-623.1","token":"58.1\/I\/6\/58.1-623.1","url":"\/58.1-623.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-623.1\/","token":"58.1\/I\/6\/58.1-623.1","dublin_core":{"Title":"Misuse of exemption certificates; suspension of exemptions; penalties","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-623.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Whenever the Tax Commissioner<\/span> determines that any person<\/span> has misused an exemption certificate, the Tax Commissioner<\/span>, after giving such person<\/span> 10-days’ notice in writing specifying the time and place of hearing<\/span> and requiring him to show cause why the exemption should not be suspended, may suspend the exemption held by such person<\/span>. The notice may be personally served or served by registered mail directed to the last known address of such person<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any person<\/span> who knowingly uses<\/span> or gives an exemption certificate during a period of suspension of an exemption under this section shall be guilty of a Class 1 misdemeanor<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> It shall be the duty of any person<\/span> whose exemption is suspended under the provisions of this section to notify each dealer from whom purchases or leases of tangible personal property<\/span> are made, of the suspension of its exemption, and of the invalidity of any exemption certificates filed with such dealers. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In lieu of the suspension of a person<\/span>’s exemption under subsection A, the Tax Commissioner<\/span> may assess a penalty<\/span> of up to $1,000 for the misuse of an exemption certificate by that person<\/span> or by any other person<\/span> who, with the consent or knowledge of the exemption holder, has misused the certificate. The penalty<\/span> shall be assessed and collected as a part of the tax, and the person<\/span> so assessed may appeal<\/span> the penalty<\/span> pursuant to the provisions of Article 2 (§ 58.1-1820<\/a> et seq.) of Chapter 18 of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In any instance in which the Tax Commissioner<\/span> determines that there has been any misuse of an exemption certificate, the person<\/span> holding the exemption shall be liable for the full amount of tax, and any interest thereon, applicable to any purchase improperly made with his exemption certificate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The suspension of the exemption shall require that the person<\/span> pay the full amount of the tax at the time of purchase and apply for a refund of the tax so paid. No interest shall be paid on any such refund. Upon application of the person<\/span> whose certificate has been suspended, the Tax Commissioner<\/span>, for good cause shown, may reinstate the person<\/span>’s certificate; however, any such suspension period shall run for at least one year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Notwithstanding § 58.1-3<\/a>, the Tax Commissioner<\/span> may report any gross misuses of exemption certificates to the Secretary of Finance and the chairmen of the money committees, for their confidential use<\/span>, prior to the beginning of the following session of the General Assembly. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMISUSE OF EXEMPTION CERTIFICATES; SUSPENSION OF EXEMPTIONS; PENALTIES (\u00a7\n58.1-623.1)\n\nA. Whenever the Tax Commissioner determines that any person has misused an\nexemption certificate, the Tax Commissioner, after giving such person\n10-days’ notice in writing specifying the time and place of hearing and\nrequiring him to show cause why the exemption should not be suspended, may\nsuspend the exemption held by such person. The notice may be personally served\nor served by registered mail directed to the last known address of such person.\n\nB. Any person who knowingly uses or gives an exemption certificate during a\nperiod of suspension of an exemption under this section shall be guilty of a\nClass 1 misdemeanor.\n\nC. It shall be the duty of any person whose exemption is suspended under the\nprovisions of this section to notify each dealer from whom purchases or leases\nof tangible personal property are made, of the suspension of its exemption, and\nof the invalidity of any exemption certificates filed with such dealers.\n\nD. In lieu of the suspension of a person’s exemption under subsection A,\nthe Tax Commissioner may assess a penalty of up to $1,000 for the misuse of an\nexemption certificate by that person or by any other person who, with the\nconsent or knowledge of the exemption holder, has misused the certificate. The\npenalty shall be assessed and collected as a part of the tax, and the person so\nassessed may appeal the penalty pursuant to the provisions of Article 2 (§\n58.1-1820 et seq.) of Chapter 18 of this title.\n\nE. In any instance in which the Tax Commissioner determines that there has been\nany misuse of an exemption certificate, the person holding the exemption shall\nbe liable for the full amount of tax, and any interest thereon, applicable to\nany purchase improperly made with his exemption certificate.\n\nF. The suspension of the exemption shall require that the person pay the full\namount of the tax at the time of purchase and apply for a refund of the tax so\npaid. No interest shall be paid on any such refund. Upon application of the\nperson whose certificate has been suspended, the Tax Commissioner, for good\ncause shown, may reinstate the person’s certificate; however, any such\nsuspension period shall run for at least one year.\n\nG. Notwithstanding § 58.1-3, the Tax Commissioner may report any gross\nmisuses of exemption certificates to the Secretary of Finance and the chairmen\nof the money committees, for their confidential use, prior to the beginning of\nthe following session of the General Assembly.\n\nHISTORY: 1989, c. 12; 1999, cc. 762, 776; 2002, c. 775; 2003, cc. 757, 758.","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}}