                                 CODE OF VIRGINIA

(CONTINGENT EFFECTIVE DATE &#8212; SEE NOTE*) VENDING MACHINE SALES (§
58.1-614)

A. Notwithstanding the provisions of &#xA7;&#xA7; 58.1-603 and 58.1-604,
whenever a dealer makes sales of tangible personal property through vending
machines, or in any other manner making collection of the tax impractical, as
determined by the Tax Commissioner, such dealer shall be required to report his
wholesale purchases for sale at retail from vending machines and shall be
required to remit an amount based on four and one-half percent through midnight
on July 31, 2004, and five percent beginning on and after August 1, 2004, of
such wholesale purchases.

B. Notwithstanding the provisions of &#xA7;&#xA7; 58.1-605 and 58.1-606, dealers
making sales of tangible personal property through vending machines shall report
and remit the one percent local sales and use tax computed as provided in
subsection A of this section.

C. The provisions of subsections A and B of this section shall not be applicable
to vending machine operators all of whose machines are under contract to
nonprofit organizations. Such operators shall report only the gross receipts
from machines selling items for more than 10 cents and shall be required to
remit an amount based on a percentage of their remaining gross sales established
by the Tax Commissioner to take into account the inclusion of sales tax.

D. Notwithstanding any other provisions in this section, when the Tax
Commissioner determines that it is impractical to collect the tax in the manner
provided by those sections, such dealer shall be required to remit an amount
based on a percentage of gross receipts which takes into account the inclusion
of the sales tax.

E. The provisions of this section shall not be applicable to any dealer who
fails to maintain records satisfactory to the Tax Commissioner. A dealer making
sales of tangible personal property through vending machines shall obtain a
certificate of registration under &#xA7; 58.1-613 in relevant form for each
county or city in which he has machines.

HISTORY: Code 1950, § 58-441.34; 1966, c. 151; 1974, c. 389; 1980, c. 755;
1982, c. 219; 1984, c. 675; 1986, Sp. Sess., c. 12; 2004, Sp. Sess. I, c. 3.