SB 101 — Retail Sales and Use Tax; extends media-related exemptions.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E481 An Act to amend and reenact § 58.1-609.6 of the Code of Virginia, relating to retail sales and use tax;

R O [S 101] Approved LApril L11, 2022 Be it enacted by the General Assembly of Virginia:

E § 58.1-609.6.

DThe shalltax notimposed applyby tothis thechapter following:r or pursuant to the authority granted in §§ 58.1-605 and 58.1-606 1.shall not apply to the following:

1.

2.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 which are under the regulation and supervision of the Federal Communications Commission and amplification, transmission and distribution equipment used or to be used by wired or land based wireless cable television systems, or open video systems or other video systems provided by telephone common carriers.

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 which are under the regulation and supervision of the FeBeral Communications Commission and amplification, transmission and distribution equipment used or to0be systems provided by telephone common carriers.evision systems, or open video systems or other vEdeo 3.

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 "administrativeCommonwealth supplies"and includes,distributed butfor isuse notwithout limitedthe to,Commonwealth. letterhead, envelopes, and other stationery;

As used in this subdivision, "administrative supplies" includes, but is not limited to, letterhead, envelopes, and other stationery;

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 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, 2022 2025, 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.

(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;

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;

andin the production of any audiovisual work and prior to their enhancement b.

Equipment and parts and accessories thereto used or to be used in the production of such of 2 audiovisual works.

Beginning July 1, 1998, and ending July 1, 2022, textbooks and other educational materials of 2 withdrawn from inventory at book-publishing distribution facilities for free distribution to professors and other individuals who have an educational focus.