SB 683 — Retail Sales and Use Tax; definitions, media-related exemptions.
Last action — Approved by Governor-Chapter 435 (effective 7/1/22)
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House of Delegates
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 20, 2022. Enacted.
Signed by Governor Glenn Youngkin (Republican) on April 11, 2022.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Cleared a recorded vote
Passed 8 recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
Sales and use tax; media-related exemptions. Makes changes to the sales and use tax exemption for amplification, transmission, and distribution equipment used to provide Internet services. Under the bill, the exemption would apply to network equipment used to provide Internet service, regardless of whether the provider of such service is also a telephone common carrier or whether such network is also used to provide services other than Internet services. This bill is identical to HB 1155.
Bill Text
What changed in the latest version
304 added · 309 removedPlain-language change summary
The bill SB 683 changes certain definitions related to sales and use tax concerning accommodations. Notably, it clarifies what constitutes an "accommodations intermediary" by expanding the description of their role in facilitating sales and explicitly mentioning the inclusion of payment processors in these transactions. This specificity may affect how different parties in the accommodations industry are classified and taxed under Virginia law.
SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E435 An Act to amend and reenact §§ 58.1-602 and 58.1-609.6 of the Code of Virginia, relating to sales and use tax;
R O [S 683] Approved LApril L11, 2022 Be it enacted by the General Assembly of Virginia:
That §§ 58.1-602 and 58.1-609.6 of the Code of Virginia are amended and reenacted as followsEfollows: § 58.1-602.
§ 58.1-602.
DAs "Accommodations"used means any room or rooms, lodgings, or accommodations in anythis hotel,chapter, motel,unless inn,the touristcontext camp,clearly touristshows cabin,otherwise: camping grounds, club, or any other place in which rooms, lodging, space, or accommodations are regularly furnished to transients for a consideration.
"Accommodations"Accommodations" fee" means theany room chargeor lessrooms, thelodgings, discountor roomaccommodations charge,in ifany any,hotel, providedmotel, thatinn, thetourist camp, tourist cabin, camping grounds, club, or any other place in which rooms, lodging, space, or accommodations feeare shallregularly notfurnished beto lesstransients thanfor $0.a consideration.
the accommodations fee shall not be less than $0.s the discount room charge, if any, provided that "Accommodations intermediary" means any person other than an accommodations provider that facilitates the sale of an accommodation, charges a room charge to the customer, and charges anBan accommodations fee to the customer, which fee it retains as compensation for facilitating the s8le.sale.
For purposes of this definition, "facilitates the sale" includes brokering, coordinating, or in any other way arranging for the purchase of the right to use accommodations via a transaction directly, incluEingincluding viaayvia one or more payment processors, between a customer and an accommodations provider.
R "Accommodations intermediary" does not include a person:
Who facilitates the sale of an accommodation if (i) the price paid by the customer to such person is equal to the price paid by such person to the accommodations provider for the use of the accommodations and (ii) the only compensation received by such person for facilitating the sale of the acc"Accommodationsaccommodation provider"is meansa anycommission personpaid thatfrom furnishesthe accommodations provider to thesuch generalperson. public for compensation.
"Accommodations provider" means any person that furnishes accommodations to the general public for compensation.
"Affiliate" means the same as such term is defined in § 58.1-439.18.
the"Business" objectincludes ofany gain,activity benefitengaged orin advantage,by eitherany directlyperson, or indirectly.tocaused to be engaged in by him, with "Cost price" means the actualobject cost of angain, itembenefit or articleadvantage, ofeither tangibledirectly personal property computed in the same manner as the sales price as defined in this section without any deductions therefrom on account of the cost of materials used, labor, or serviceindirectly. costs, transportation charges, or any expenses whatsoever.
"Cost price" means the actual cost of an item or article of tangible personal property computed in the same manner as the sales price as defined in this section without any deductions therefrom on account of the cost of materials used, labor, or service costs, transportation charges, or any expenses whatsoever.
accommodations"Discount intermediary,room orcharge" an affiliate thereof, for furnishing the accommodations.o the "Distribution" means the transferfull oramount deliverycharged of tangible personal property for use, consumption, or of 6 storage by the distributee,accommodations andprovider to the use,accommodations consumption,intermediary, or storagean ofaffiliate tangiblethereof, personalfor propertyfurnishing by a person that has processed, manufactured, refined, or converted such property, but does not include the transferaccommodations. or delivery of tangible personal property for resale or any use, consumption, or storage otherwise exempt under this chapter.
"Distribution" means the transfer or delivery of tangible personal property for use, consumption, or storage by the distributee, and the use, consumption, or storage of tangible personal property by a person that has processed, manufactured, refined, or converted such property, but does not include the of 6 transfer or delivery of tangible personal property for resale or any use, consumption, or storage otherwise exempt under this chapter.
For purposes of this chapter, "modular building" does not include a mobile office as defined in § 58.1-2401 or any manufactured building subject to and of 6 certified under the provisions of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
E "Modular building manufacturer" means a person that owns or operates a manufacturing facility and is engaged in the fabrication, construction and assembling of building supplies and materials into modular buildings, as defined in this section, at a location other than at the site where the mRdularmodular of 6 building will be assembled on the permanent foundation and may or may not be engaged in the process of "Modularaffixing building retailer" means any person that purchases or acquires a modular building from a modular building manufacturer, or from another person, for subsequent sale to a customer residing within or outside of the Commonwealth,modules with or without installation of the modular building to the foundation at the permanent site.
L"Modular "Motorbuilding vehicle"retailer" means aany "motorperson vehicle"that aspurchases definedor inacquires §a 58.1-2401,modular taxablebuilding underfrom thea provisiEnsmodular ofbuilding themanufacturer, Virginiaor Motorfrom Vehiclesanother Salesperson, andfor Usesubsequent Taxsale Actto (§a 58.1-2400customer etresiding seq.)within andor uponoutside of the saleCommonwealth, ofwith whichor allwithout applicableinstallation motorof vehiclethe salesmodular andbuilding useto taxesthe havefoundation beenat paid.the permanent site.
D"Motor "Occasionalvehicle" sale" means a sale"motor ofvehicle" tangibleas personaldefined propertyin not§ held58.1-2401, ortaxable usedunder by a seller in the courseprovisions of anthe activityVirginia forMotor whichVehicles itSales isand requiredUse toTax holdAct a(§ certificate58.1-2400 ofet registration,seq.) includingand upon the sale orof anywhich business,all providedapplicable thatmotor suchvehicle sale or exchange is not one of a series of sales and exchangesdationuse oftaxes sufficienthave inbeen number,paid. scope and character to constitute an activity requiring the holding of a certificate of registration.
"Occasional sale" means a sale of tangible personal property not held or used by a seller in the course of an activity for which it is required to hold a certificate of registration, including the sale or exchange of all or substantially all the assets of any business and the reorganization or liquidation of any business, provided that such sale or exchange is not one of a series of sales and exchanges sufficient in number, scope and character to constitute an activity requiring the holding of a certificate of registration.
§ 573 and, fSrfor purposes of this chapter only, also includes Internet service regardless of whether the provide6provider of such service is also a telephone common carrier.
3 "Person" includes any individual, firm, copartnership, cooperative, nonprofit membership corRoration,corporation, joint venture, association, corporation, estate, trust, business trust, trustee in bankruptcy, receiver, auctioneer, syndicate, assignee, club, society, or other group or combination acting as a unit, body politic or political subdivision, whether public or private, or quasi-public, and the plural of "person" mea"Prewritten program" means athe computersame programas thatthe issingular. prepared, held or existing for general or repeated sale or lease, including a computer program developed for in-house use and subsequently sold or leased to unrelated third parties.
"Prewritten program" means a computer program that is prepared, held or existing for general or repeated sale or lease, including a computer program developed for in-house use and subsequently sold or leased to unrelated third parties.
"Remote seller" means any dealer deemed to have sufficient activity within the Commonwealth to orrequire anyregistration softwareunder provider§ acting58.1-613 onunder behalfthe ofcriteria suchspecified dealer.specified in subdivision C 10 or 11 of § 58.1-612 "Retail sale" or a "sale at retail" means a sale to any personsoftware forprovider anyacting purposeon otherbehalf than for resale in the form of tangible personal property or services taxable under this chapter, and shall include any such transactiondealer. as the Tax Commissioner upon investigation finds to be in lieu of a sale.
"Retail sale" or a "sale at retail" means a sale to any person for any purpose other than for resale in the form of tangible personal property or services taxable under this chapter, and shall include any such transaction as the Tax Commissioner upon investigation finds to be in lieu of a sale.
(ii) sales of tangible personal property to persons for resale when because of the operation of the business, or its very nature, or the lack of a place of business in which to display a certificate of registration, or the lack of a place of business in which to keep records, or the lack of adequate records, or because such persons are minors or transients, or because such persons are engaged in essentially service businesses, or for any other reason there is likelihood that the Commonwealth will lose tax funds due to the difficulty of policing such business operations;
The Tax Commissioner is authorized to promulgate regulations requiring vendors of or sellers to such persons to collect the tax imposed by this chapter on the cost price of such tangible personal property to such persons and may refuse to issue certificates of registration to such persons.
The terms "retail sale" and a "sale at retail" also specifically include the separately stated charge made of 6 for supplies used during automotive repairs whether or not there is transfer of title or possession of the supplies and whether or not the supplies are attached to the automobile.
Further, a purchaser of a right or license which entitles the purchaser to use the amenities and facilities of a of 6 specific real estate project on an ongoing basis throughout its term shall not be deemed a transient, provided, however, that the term or time period involved is for seven years or more.
of 6 "Tangible personal property" means personal property that may be seen, weighed, measured, felt, or touched, or is in any other manner perceptible to the senses.
"Tangible personal property" doesEnotdoes not include stocks, bonds, notes, insurance or other obligations or securities.
R "Use" means the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business.
"Use" does not include the exercise of any right or power, including use, distribution, orourseor storage, over any tangible personal property sold to a nonresident donor for delivery outside of the Commonwealth to a nonresident recipient pursuant to an order placed by the donor from outside the Commonwealth via mail or telephone.
"Use" does not include any sale determined to be a gift Lof 6 transaction, subject to tax under § 58.1-604.6.
E "Use tax" refers to the tax imposed upon the use, consumption, distribution, and storage as defined in this section.
D "Used directly," when used in relation to manufacturing, processing, refining, or conversion, refers to those activities that are an integral part of the production of a product, including all steps of an integrated manufacturing or mining process, but not including ancillary activities such as general maintenance or administration.
S "Video programming" means video and/or information programming provided by or generally 6 considered comparable to programming provided by a cable operator, including, but not limited t3,to, Internet service.
R § 58.1-609.6.
motion1. picture theaters or by licensed radio and television stations., and films for public exhibition at 2.
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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.
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;
Notwithstanding the provisions of subdivision 5 or the definition of "advertising" contained in § 58.1-602, (i) any advertising business located outside the Commonwealth which purchases printing from a printer within the Commonwealth shall not be deemed the user or consumer of the printedtingprinted 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, 2022, any advertising business which 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.
6.
Beginning July 1, 1995, and ending July 1, 2027:
(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 of 6 licensing, distributing, broadcasting, commercially exhibiting or reproducing the work or using or incorporating the work into another such work;
Beginning July 1, 1998, and ending July 1, 2022, textbooks and other educational materials of 6 withdrawn from inventory at book-publishing distribution facilities for free distribution to professors and other individuals who have an educational focus.
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View plain text versions (4)
- CHAP0435 View text Current pdf April 11, 2022
- SB683ER View text pdf March 02, 2022
- Engrossed Printed as engrossed 22103553D-E pdf February 10, 2022
- Presented and ordered printed 22103553D View text pdf January 20, 2022
Action History
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Approved by Governor-Chapter 435 (effective 7/1/22)
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Governor's Action Deadline 11:59 p.m., April 11, 2022
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Enrolled Bill Communicated to Governor on March 11, 2022
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Impact statement from TAX (SB683ER)
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Signed by President
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Signed by Speaker
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Enrolled
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House amendment agreed to by Senate (39-Y 0-N 1-A)
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Reconsideration of House amendment agreed to by Senate (39-Y 0-n)
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House amendment agreed to by Senate (40-Y 0-N)
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VOTE: Passage (97-Y 0-N 1-A)
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Passed House with amendment (97-Y 0-N 1-A)
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Engrossed by House as amended
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Committee amendment agreed to
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Read third time
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Read second time
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Reported from Finance with amendment(s) (21-Y 0-N)
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Referred to Committee on Finance
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Read first time
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Placed on Calendar
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Impact statement from TAX (SB683E)
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Read third time and passed Senate (38-Y 0-N 1-A)
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Printed as engrossed 22103553D-E
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Engrossed by Senate as amended SB683E
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Committee amendment agreed to
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Reading of amendment waived
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Read second time
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Constitutional reading dispensed (38-Y 0-N)
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Reported from Finance and Appropriations with amendment (14-Y 1-N 1-A)
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Impact statement from TAX (SB683)
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Referred to Committee on Finance and Appropriations
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Presented and ordered printed 22103553D
Sponsors
- David W. Marsden · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 147 not signed on · 1 voted No
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (147)
147 members have not signed on to this bill.
Show all 147 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 39 | 0 | 0 | 1 |
| Total | 39 | 0 | 0 | 1 |
| % of votes cast | 98% | 0% | 0% | 3% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 39 | 0 | 0 | 1 |
| Total | 39 | 0 | 0 | 1 |
| % of votes cast | 98% | 0% | 0% | 3% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 40 | 0 | 0 | 0 |
| Total | 40 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 96 | 0 | 0 | 3 |
| Total | 96 | 0 | 0 | 3 |
| % of votes cast | 97% | 0% | 0% | 3% |
How each member voted (99)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 21 | 0 | 0 | 1 |
| Total | 21 | 0 | 0 | 1 |
| % of votes cast | 95% | 0% | 0% | 5% |
How each member voted (22)
| Member | Party | Vote |
|---|---|---|
| Bill Wiley | — | Yea |
| Byron, Kathy J. | — | Yea |
| Campbell, Ronnie R. | — | Yea |
| Chris S. Runion | — | Yea |
| Don Scott | — | Yea |
| Elizabeth B. Bennett-Parker | — | Yea |
| Fowler, Hyland F."Buddy," Jr. | — | Yea |
| Freitas, Nicholas J. | — | Yea |
| Hudson, Sally L. | — | Yea |
| Joseph P. McNamara | — | Yea |
| Keam, Mark L. | — | Yea |
| Marcus B. Simon | — | Yea |
| Mundon King, Candi | — | Yea |
| Murphy, Kathleen | — | Yea |
| Orrock, Robert D., Sr. | — | Yea |
| R. Lee Ware | — | Yea |
| Richard C. "Rip" Sullivan, Jr. | — | Yea |
| Robinson, Roxann L. | — | Yea |
| Rodney T. Willett | — | Not Voting |
| Tara A. Durant | — | Yea |
| Vivian E. Watts | — | Yea |
| Wendell S. Walker | — | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 38 | 0 | 0 | 2 |
| Total | 38 | 0 | 0 | 2 |
| % of votes cast | 95% | 0% | 0% | 5% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 38 | 0 | 0 | 2 |
| Total | 38 | 0 | 0 | 2 |
| % of votes cast | 95% | 0% | 0% | 5% |
How each member voted (40)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 14 | 1 | 0 | 1 |
| Total | 14 | 1 | 0 | 1 |
| % of votes cast | 88% | 6% | 0% | 6% |
How each member voted (16)
| Member | Party | Vote |
|---|---|---|
| McClellan, Jennifer L. | — | Not Voting |
| Barker, George L. | — | Yea |
| David W. Marsden | — | Yea |
| Ebbin, Adam P. | — | Yea |
| Edwards, John S. | — | Yea |
| Hanger, Emmett W., Jr. | — | Yea |
| Howell, Janet D. | — | Yea |
| L. Louise Lucas | — | Yea |
| Mamie E. Locke | — | Yea |
| Newman, Stephen D. | — | Yea |
| Norment, Thomas K., Jr. | — | Yea |
| Petersen, J. Chapman | — | Yea |
| R. Creigh Deeds | — | Nay |
| Ruff, Frank M., Jr. | — | Yea |
| Saslaw, Richard L. | — | Yea |
| Vogel, Jill Holtzman | — | Yea |
Subjects
Frequently asked questions
- What does SB 683 do?
- Sales and use tax; media-related exemptions. Makes changes to the sales and use tax exemption for amplification, transmission, and distribution equipment used to provide Internet services. Under the bill, the exemption would apply to network equipment used to provide Internet service, regardless of whether the provider of such service is also a telephone common carrier or whether such network is also used to provide services other than Internet services. This bill is identical to HB 1155.
- Who sponsors SB 683?
- SB 683 is sponsored by David W. Marsden.
- What is the current status of SB 683?
- This bill has been enacted into law. Introduced January 20, 2022. Enacted.
- Where can I track SB 683?
- Track SB 683 free on One Click Politics — get push/email alerts when it moves.
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