                                 CODE OF VIRGINIA

EXEMPTIONS (§ 58.1-1505)

A. Any aircraft sold to or used by (i) the United States or any of the
governmental agencies thereof, (ii) the Commonwealth of Virginia or any
political subdivision thereof, (iii) any air carrier operating in intrastate,
interstate or foreign commerce providing scheduled air service as defined in
&#xA7; 58.1-1501, (iv) any nonprofit charitable organization that is exempt from
taxation under &#xA7; 501(c)(3) of the Internal Revenue Code and that is
organized and operated exclusively for the purpose of providing charitable,
long-distance, advanced life-support, air transportation services using an
emergency medical services vehicle for low-income medical patients in the
Commonwealth, or (v) an organization that is exempt from taxation under &#xA7;
501(c)(3) of the Internal Revenue Code and that is organized for the primary
purpose of distributing food, clothing, medicines and other necessities of life
to, and providing shelter for, needy persons in the United States and throughout
the world shall be exempt from the tax imposed by this chapter.

B. Aircraft that are (i) considered Warbirds, manufactured and intended for
military use, excluding those manufactured after 1954, and (ii) used only for
(a) exhibit or display to the general public and otherwise used for educational
purposes (including such flights as are necessary for testing, maintaining, or
preparing such aircraft for safe operation), or (b) airshow and flight
demonstrations (including such flights necessary for testing, maintaining, or
preparing such aircraft for safe operation), but not including any aircraft used
for commercial purposes, including transportation and other services for a fee,
shall be exempt from the tax imposed by this chapter.

C. Beginning July 1, 2011, and ending December 31, 2014, any aircraft purchased
or used by a qualified company shall be exempt from the tax imposed by this
chapter. For purposes of this subsection, a qualified company shall be an
aviation-related company, limited liability company, partnership, or a
combination of such entities that have a common ownership interest through a
parent, as a direct or indirect subsidiary of a parent, or as affiliated
brother-sister entities that (i) is headquartered in the Commonwealth, (ii)
between January 1, 2010, and December 31, 2014, makes a new capital investment
of at least $4 million in aviation-related real estate and real estate
improvements in the Commonwealth on publicly-owned, public-use airports, (iii)
between January 1, 2010, and December 31, 2014, creates in the Commonwealth at
least 50 new jobs that pay at least one and a half times the prevailing average
wage in the locality in which the jobs are located, (iv) owns or uses aircraft
that are used primarily for intrastate, interstate, or foreign commerce, and (v)
has entered into a memorandum of understanding with the Virginia Economic
Development Partnership, after consultation with the Virginia Department of
Aviation, on or before December 31, 2014, that at a minimum provides the details
for determining the amount of capital investment made and the number of new jobs
created, the timeline for achieving the capital investment and new job goals,
the repayment obligations should those goals not be achieved, and any conditions
under which repayment by the qualifying person claiming the exemption may be
required.

D. Any aircraft sold in the Commonwealth as evidenced by Federal Aviation
Administration Bill of Sale AC Form 8050-2 and registered outside of the
Commonwealth as evidenced by Federal Aviation Administration Aircraft
Registration AC Form 8050-1 shall be exempt from the sales tax imposed by this
chapter, so long as the aircraft is removed from the Commonwealth within 60 days
of the date of purchase on the Bill of Sale. If the aircraft is removed from the
Commonwealth within 60 days of the date of purchase, the time between the date
of purchase and the removal of the aircraft shall not be counted for purposes of
determining whether the aircraft is subject to the use tax imposed by this
chapter on aircraft that are based in the Commonwealth for over 60 days in any
12-month period.

HISTORY: Code 1950, §§ 58-685.31, 58-685.32; 1974, c. 431; 1980, cc. 109, 618;
1984, cc. 370, 675; 1995, cc. 204, 723, 786; 2007, c. 610; 2011, cc. 443, 492;
2015, cc. 502, 503.