                                 CODE OF VIRGINIA

ENTITLEMENT TO CERTAIN SALES TAX REVENUES (§ 58.1-608.3)

A. As used in this section, the following words and terms have the following
meanings, unless some other meaning is plainly intended:
			&#8220;Bonds&#8221; means any obligations of a municipality for the payment
of money.
			&#8220;Cost,&#8221; 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.
			&#8220;Municipality&#8221; means any county, city, town, authority,
commission, or other public entity.
			&#8220;Public facility&#8221; 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 &#8220;shopping centers&#8221; or &#8220;malls&#8221;
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.
			&#8220;Sales tax revenues&#8221; means such tax collections realized under
the Virginia Retail Sales and Use Tax Act (&#xA7; 58.1-600 et seq.), as limited
herein. &#8220;Sales tax revenues&#8221; 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 &#xA7; 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 &#xA7; 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. Notwithstanding the definition of &#8220;public facility&#8221; in subsection
A, a development project that meets the requirements for a &#8220;development of
regional impact&#8221; 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.
			For purposes of this subsection, a &#8220;development of regional
impact&#8221; 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. 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 (&#xA7; 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. 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.

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.