                                 CODE OF VIRGINIA

CLASSIFICATION (§ 58.1-1101)

A. The subjects of taxation classified by this section are hereby defined as
intangible personal property:

   1. Capital which is inventory, except wine while in the hands of a farm winery
   producer as defined in &#xA7; 4.1-100, merchandise located in a foreign trade
   zone as defined in subdivision 7 of this subsection and any agricultural
   product held in this Commonwealth by any manufacturer for manufacturing or
   processing which is of such nature as customarily requires storage and
   processing for periods of more than one year in order to age or condition such
   product for manufacture. Such agricultural product shall be includible in
   inventory for one tax year only and after being taxed for one year shall
   thereafter be excluded for all succeeding tax years;

   2. Capital which is personal property, tangible in fact, used in manufacturing
   (including, but not limited to, furniture, fixtures, office equipment and
   computer equipment used in corporate headquarters), mining, water well
   drilling, radio or television broadcasting, dairy, dry cleaning or laundry
   businesses. Machinery and tools, motor vehicles and delivery equipment of such
   businesses shall not be defined as intangible personal property for purposes
   of this chapter and shall be taxed locally as tangible personal property
   according to the applicable provisions of law relative to such property;
   				2a. Personal property, tangible in fact, used in cable television
   businesses. Machines and tools, motor vehicles, delivery equipment, trunk and
   feeder cables, studio equipment, antennae and office furniture and equipment
   of such businesses shall not be defined as intangible personal property for
   purposes of this chapter and shall be taxed locally as tangible personal
   property according to the applicable provisions of law relative to such
   property;

   3. Money;

   4. Bonds, notes, and other evidences of debt; demands and claims;

   5. Shares of stock;

   6. Accounts receivable;

   7. All imported and exported foreign merchandise or domestic merchandise
   scheduled for export while in inventory located in a foreign trade zone within
   the Commonwealth;

   8. Computer application software, except computer application software which
   is inventory as defined in subdivision 1 of this subsection, is defined as
   computer instructions, in any form, which are designed to be read by a
   computer and to enable it to perform specific operations with data or
   information stored by the computer;

   9. Capital which is personal property, tangible in fact, used in commercial
   fishing businesses, and used in the water to catch or harvest seafood,
   including but not limited to crab pots, nets, tongs, and dredge equipment.
   Fishing vessels and property permanently attached to such vessels shall not be
   defined as intangible personal property for purposes of this chapter and shall
   be taxed locally as tangible personal property according to the applicable
   provisions of law relative to such property; and

   10. Capital which is personal property, tangible in fact, that (i) is employed
   in a trade or business, (ii) has an original cost of less than $25, and (iii)
   is not classified as machinery and tools pursuant to Article 2 (&#xA7;
   58.1-3507 et seq.) of Chapter 35, merchants&#8217; capital pursuant to Article
   3 (&#xA7; 58.1-3509 et seq.) of Chapter 35, or short-term rental property
   pursuant to Article 3.1 (&#xA7; 58.1-3510.4 et seq.) of Chapter 35.

B. [Repealed.]

C. The subjects of intangible personal property set forth in subdivisions 1
through 10 of subsection A shall be exempt from taxation as provided in Article
X, Section 6 (a)(5) of the Constitution of Virginia.

HISTORY: Code 1950, § 58-405; 1981, c. 145; 1982, c. 633; 1983, cc. 552, 555;
1984, cc. 150, 171, 675, 680, 692, 729; 1993, c. 866; 1996, c. 622; 1999, c.
396; 2000, c. 472; 2019, c. 255.