                                 CODE OF VIRGINIA

MEDIA-RELATED EXEMPTIONS (§ 58.1-609.6)

The tax imposed by this chapter or pursuant to the authority granted in §§
58.1-605 and 58.1-606 shall not apply to the following:

1. Leasing, renting, or licensing of copyright audio or video tapes and films
for public exhibition at motion picture theaters or by licensed radio and
television stations.

2. (i)  Broadcasting equipment and parts and accessories thereto and towers used
or to be used by commercial radio and television companies, wired or land-based
wireless cable television systems, common carriers or video programmers using an
open video system or other video platform provided by telephone common carriers,
or concerns that are under the regulation and supervision of the Federal
Communications Commission and (ii) amplification, transmission, distribution,
and network equipment used or to be used by wired or land-based wireless (a)
cable television systems, (b) open video systems, or (c) telephone common
carriers.

3. Any publication issued daily or regularly at average intervals not exceeding
three months and advertising supplements and any other printed matter ultimately
distributed with or as part of such publications; however, newsstand sales of
the same are taxable. As used in this subdivision, the term &#8220;newsstand
sales&#8221; shall not include sales of back copies of publications by the
publisher or his agent.

4. Catalogs, letters, brochures, reports, and similar printed materials, except
administrative supplies, the envelopes, containers, and labels used for
packaging and mailing same, and paper furnished to a printer for fabrication
into such printed materials, when stored for 12 months or less in the
Commonwealth and distributed for use outside the Commonwealth. As used in this
subdivision, &#8220;administrative supplies&#8221; includes letterhead,
envelopes, and other stationery and invoices, billing forms, payroll forms,
price lists, time cards, computer cards, and similar supplies. Notwithstanding
the provisions of subdivision 5 or the definition of &#8220;advertising&#8221;
contained in &#xA7; 58.1-602, (i) any advertising business located outside the
Commonwealth that purchases printing from a printer within the Commonwealth
shall not be deemed the user or consumer of the printed materials when such
purchases would have been exempt under this subdivision and (ii) from July 1,
1995, through June 30, 2002, and beginning July 1, 2002, and ending July 1,
2028, any advertising business that purchases printing from a printer within the
Commonwealth shall not be deemed the user or consumer of the printed materials
when such purchases would have been exempt under subdivision 3 or this
subdivision, provided that the advertising agency shall certify to the Tax
Commissioner, upon request, that such printed material was distributed outside
the Commonwealth and such certification shall be retained as a part of the
transaction record and shall be subject to further review by the Tax
Commissioner.

5. Advertising as defined in &#xA7; 58.1-602.

6. Beginning July 1, 1995, and ending July 1, 2027:
			a. (i)  The lease, rental, license, sale, other transfer, or use of any audio
or video tape, film, or other audiovisual work where the transferee or user
acquires or has acquired the work for the purpose of licensing, distributing,
broadcasting, commercially exhibiting, or reproducing the work or using or
incorporating the work into another such work; (ii) the provision of production
services or fabrication in connection with the production of any portion of such
audiovisual work, including scriptwriting, photography, sound, musical
composition, special effects, animation, adaptation, dubbing, mixing, editing,
cutting, and provision of production facilities or equipment; or (iii) the
transfer or use of tangible personal property, including scripts, musical
scores, storyboards, artwork, film, tapes, and other media, incident to the
performance of such services or fabrication; however, audiovisual works and
incidental tangible personal property described in clauses (i) and (iii) shall
be subject to tax as otherwise provided in this chapter to the extent of the
value of their tangible components prior to their use in the production of any
audiovisual work and prior to their enhancement by any production service; and
			b. Equipment and parts and accessories thereto used or to be used in the
production of such audiovisual works.

7. Beginning July 1, 1998, and ending July 1, 2022, textbooks and other
educational materials withdrawn from inventory at book-publishing distribution
facilities for free distribution to professors and other individuals who have an
educational focus.

HISTORY: 1993, c. 310; 1994, c. 446; 1995, cc. 101, 171, 719; 1997, cc. 307,
717, 822, 824; 1998, cc. 645, 812; 2002, cc. 183, 228, 777; 2003, cc. 911, 916;
2004, cc. 63, 101, 590, 606, 821; 2007, cc. 58, 604; 2008, cc. 138, 545; 2012,
cc. 275, 411, 477; 2017, cc. 54, 412, 441; 2020, cc. 966, 967; 2022, cc. 434,
435, 481; 2025, cc. 307, 318.