SB 1715 — Retail Sales and Use Tax; exemption for menstrual supplies.

ArtificialFifty orpercent propaneof gas,the firewood,revenues coalshall orbe homedeposited heatinginto oilthe Historic Triangle Marketing Fund created pursuant to subsection E and used for domesticthe consumption.purposes set forth therein;

"Domesticand consumption"2. means the use of artificial or propane gas, firewood, coal or home heating oil by an individual purchaser for other than business, commercial or industrial purposes.

TheFifty Taxpercent Commissionerof the revenues shall establishbe bydeposited regulationinto a systemspecial forfund usehereby bycreated dealerson inthe classifyingbooks individualof purchasesthe forComptroller domesticunder orthe nondomesticname use"Collections basedof onHistoric theTriangle principalSales usageTax" ofand suchdistributed gas,to wood,the coallocality in which the sales or oil.use tax was collected.

AnyThe personrevenues makingreceived by a nondomesticlocality purchase and paying the tax pursuant to this chaptersubsection whoshall usesnot anybe portionused ofto suchreduce purchase for domestic use may, between the firstamount day of theother firstrevenues monthappropriated andby thesuch fifteenthlocality dayto ofor thefor fourthuse monthby following the yearGreater ofWilliamsburg purchase,Chamber applyand forTourism aAlliance refundbelow of the taxamount paidprovided onin thefiscal domesticyear use2018. portion.

E.

1.

There is hereby created in the state treasury a special nonreverting fund to be known as the Historic Triangle Marketing Fund, referred to in this section as "the Fund," to be managed and administered by the Tourism Council of the Greater Williamsburg Chamber and Tourism Alliance.

The Fund shall be established on the books of the Comptroller.

All revenues generated pursuant to this section shall be paid into the state treasury and credited to the Fund.

Interest earned on moneys in the Fund shall remain in the Fund and be credited to it.

Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund.

Moneys in the Fund shall be used solely for the purposes of marketing, advertising, and promoting the Historic Triangle area as an overnight tourism destination, with the intent to attract visitors from a sufficient distance so as to require an overnight stay of at least one night, as set forth in this subsection.

Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Secretary of Finance.

AnThe occasionalTourism sale,Council asof definedthe inGreater §Williamsburg 58.1-602.Chamber and Tourism Alliance (the Council) shall consist of members as follows:

Aone nonprofitmember organizationof that is eligible to be granted an exemption on its purchases pursuant to § 58.1-609.11, and that is otherwise eligible for the exemptionJames pursuantCity toCounty thisBoard subdivision,of shallSupervisors, beone exemptmember pursuant to this subdivision on its sales of (i)the food,York preparedCounty foodBoard and meals and (ii) tickets to events that include the provision of food,Supervisors; prepared food and meals, so long as such sales take place on fewer than 24 occasions in a calendar year.

one member of the Williamsburg City Council, one representative of the Colonial Williamsburg Foundation, one representative of the Jamestown-Yorktown Foundation, one representative of Busch Gardens Williamsburg, one representative of Historic Jamestowne, one representative of the Williamsburg Hotel and Motel Association, and one representative of the Williamsburg Area Restaurant Association.

The Chief Executive Officer of the Virginia Tourism Alliance and the Chief Executive Officer of the Virginia Tourism Corporation shall serve as ex officio, non-voting members of the Council.

TangibleThe personalCouncil propertyshall forestablish futurethe useHistoric byTriangle aOffice personof forMarketing taxableand leasePromotion or(the rentalOffice) asto anadminister establisheda businessprogram or part of anmarketing, establishedadvertising, business,and orpromotion incidentalto orattract germanevisitors to suchthe business,Historic includingTriangle aarea, simultaneousas purchaserequired andby taxablethis leaseback.subsection.

The Council shall use moneys in the Fund to fund the pay for necessary expenses of the Office and to fund the activities of the Office.

The Office shall be overseen by a professional with extensive experience in marketing or advertising and in the tourism industry.

The Office shall be responsible for (i) developing and implementing, in consultation with the Council, long-term and short-term strategic plans for advertising and promoting the numerous facilities, venues, and attractions devoted to education, historic preservation, amusement, entertainment, and dining in the Historic Triangle as a cohesive and unified travel destination for local, national, and international travelers;

(ii) assisting, upon request, with the coordination of cross-advertising and cross-marketing efforts between various tourism venues and destinations in the Historic Triangle region;

(iii) identifying strategies for both increasing the number of overnight visitors to the region and increasing the average length of stay of tourists in the region;

and (iv) performing any other function related to the promotion of the Historic Triangle region as may be identified by the Council.

DeliveryThe ofCouncil tangibleshall personalreport propertyannually outsideon theits Commonwealthlong-term forand useshort-term orstrategic consumptionplans outsideand the implementation of thesuch Commonwealth.plans;

Deliverymarketing ofefforts; goods destined for foreign export to a factor or export agent shall be deemed to be delivery of goods for use or consumption outside of the Commonwealth.

5.metrics regarding tourism in the Historic Triangle region;

Tangibleuse personal property purchased with food coupons issued by the United States Department of Agriculture under the Foodfunds Stampin Program or drafts issued through the VirginiaFund; Special Supplemental Food Program for Women, Infants, and Children.

6.and any other details relevant to the work of the Council and the Office.

TangibleSuch personalreport propertyshall purchasedbe fordelivered useno later than December 1 of each year to the managers or consumptionchief inexecutive officers of the performanceCity of maintenanceWilliamsburg and repairthe servicesCounties atof NuclearJames RegulatoryCity Commission-licensedand nuclearYork, powerand plantsto locatedthe outsideChairmen of the Commonwealth.House Committees on Finance and Appropriations and the Senate Committee on Finance.

7.§ 58.1-604.01.

Beginning(Contingent Julyexpiration 1,date) 1997,Additional andstate endinguse Julytax 1, 2006, a professional's provision of original, revised, edited, reformatted or copied documents, including but not limited to documents stored on or transmitted by electronic media, to its client or to third parties in thecertain coursecounties ofand thecities. professional's rendition of services to its clientele.

8.In addition to the use tax imposed pursuant to § 58.1-604, there is hereby levied and imposed in each county and city located in a Planning District established pursuant to Chapter 42 (§ 15.2-4200 et seq.) of Title 15.2 that (i) as of January 1, 2013, has a population of 1.5 million or more, as shown by the most recent United States Census, has not less than 1.2 million motor vehicles registered therein, and has a total transit ridership of not less than 15 million riders per year across all transit systems within the Planning District or (ii) as shown by the most recent United States Census meets the population criteria set forth in clause (i) and also meets the vehicle registration and ridership criteria set forth in clause (i), a retail use tax at the rate of 0.70 percent.

SchoolIn lunchesany soldcase andin servedwhich the tax is imposed pursuant to pupilsclause and(ii) employeessuch tax shall be effective beginning on the July 1 immediately following the calendar year in which all of schoolsthe andcriteria subsidizedhave bybeen government;met.

schoolSuch textbookstax soldshall bynot abe locallevied boardupon orfood authorizedpurchased agencyfor thereof;human consumption and essential personal hygiene products, as such terms are defined in § 58.1-611.1.

andSuch schooltax textbooksshall soldbe foradded useto bythe studentsrate attending a college or other institution of learning,the whenstate solduse (i)tax byimposed suchpursuant institutionto of§ learning58.1-604 orin (ii) by any other dealer, when such textbookscounty haveand beencity certifiedand byshall abe departmentsubject orto instructorall ofthe suchprovisions institution of learningthis aschapter requiredand textbooksthe forrules studentsand attendingregulations coursespublished atwith suchrespect institution.thereto.

9.No discount under § 58.1-622 shall be allowed for the tax described under this section.

Medicines,Such drugs,tax hypodermicshall syringes,be artificialadministered eyes, contact lenses, eyeglasses, eyeglass cases, and contactcollected lensby storagethe containersTax whenCommissioner distributedin freethe ofsame charge,manner alland solutionssubject or sterilization kits or other devices applicable to the wearingsame orpenalties maintenanceas ofprovided contactfor lensesthe orstate eyeglassesuse whentax distributedunder free§ of58.1-604. charge, and hearing aids dispensed by or sold on prescriptions or work orders of licensed physicians, dentists, optometrists, ophthalmologists, opticians, audiologists, hearing aid dealers and fitters, nurse practitioners, physician assistants, and veterinarians;

controlledThe drugsrevenue purchasedgenerated forand usecollected bypursuant ato licensedthe physician,tax optometrist,authorized licensedunder nursethis practitioner,section, orless licensedthe physicianapplicable assistantportion in his professional practice, regardless of whether such practice is organized as a sole proprietorship, partnership, or professional corporation, or any otherrefunds typeto oftaxpayers, corporationshall inbe whichdeposited theby shareholders and operators are all licensed physicians, optometrists, licensed nurse practitioners, or licensed physician assistants engaged in the practiceComptroller ofinto medicine,special optometry,funds orestablished nursing;by law.

medicinesIn andthe drugscase purchasedof forPlanning useDistrict or8, consumptionthe byrevenue agenerated licensedand hospital,collected nursingtherein home,shall clinic,be ordeposited similarinto corporationthe notfund otherwiseestablished exemptin under§ this33.2-2509. section;

andIn samplesthe case of prescriptionPlanning drugsDistrict and23, medicinesthe andrevenue theirgenerated packagingand distributedcollected freetherein ofshall chargebe todeposited authorizedinto recipients in accordance with the federalfund Food,established Drug,in and§ Cosmetic33.2-2600. Act (21 U.S.C.A.

§For 301any etadditional seq.,Planning asDistricts amended).that may become subject to this section, funds shall be established by appropriate legislation.

With the exceptions of those medicines and drugs used for agricultural production animals that are exempt to veterinarians under subdivision 1 of § 58.1-609.2,58.1-611.1. any veterinarian dispensing or selling medicines or drugs on prescription shall be deemed to be the user or consumer of all such medicines and drugs.

10.Rate of tax on sales of food purchased for human consumption and essential personal hygiene products.

WheelchairsA. and parts therefor, braces, crutches, prosthetic devices, orthopedic appliances, catheters, urinary accessories, other durable medical equipment and devices, and related parts and supplies specifically designed for those products;

andThe insulintax andimposed insulin syringes, and equipment, devices or chemical reagents that may be used by a§§ diabetic58.1-603 toand test58.1-604 oron monitorfood blood or urine, when such items or parts are purchased byfor orhuman onconsumption behalfshall ofbe anlevied individualand fordistributed useas byfollows: such individual.

Durable1. medical equipment is equipment that (i) can withstand repeated use, (ii) is primarily and customarily used to serve a medical purpose, (iii) generally is not useful to a person in the absence of illness or injury, and (iv) is appropriate for use in the home.

11.From January 1, 2000, through midnight on June 30, 2005, the tax rate on such food shall be three percent of the gross sales price.

DrugsThe andrevenue suppliesfrom usedthe intax hemodialysisshall andbe peritonealdistributed dialysis.as follows:

12.(i) the revenue from the tax at the rate of one-half percent shall be distributed as provided in subsection A of § 58.1-638, (ii) the revenue from the tax at the rate of one percent shall be distributed as provided in subsections B, C and D of § 58.1-638, and (iii) the revenue from the tax at the rate of one and one-half percent shall be used for general fund purposes.

Special equipment installed on a motor vehicle when purchased by a handicapped person to enable such person to operate the motor vehicle.

13.

Special typewriters and computers and related parts and supplies specifically designed for those products used by handicapped persons to communicate when such equipment is prescribed by a licensed physician.

14.

a.

(i) Any nonprescription drugs and proprietary medicines purchased for the cure, mitigation, treatment, or prevention of disease in human beings and (ii) any samples of nonprescription drugs and proprietary medicines distributed free of charge by the manufacturer, including packaging materials and constituent elements and ingredients.

b.

The terms "nonprescription drugs" and "proprietary medicines" shall be defined pursuant to regulations promulgated by the Department of Taxation.

The exemption authorized in this subdivision shall not apply to cosmetics.

15.

Tangible personal property withdrawn from inventory and donated to (i) an organization exempt from taxation under § 501(c)(3) of the Internal Revenue Code or (ii) the Commonwealth, any political subdivision of the Commonwealth, or any school, agency, or instrumentality thereof.

16.

Tangible personal property purchased by nonprofit churches that are exempt from taxation under § 501(c)(3) of the Internal Revenue Code, or whose real property is exempt from local taxation pursuant to the provisions of § 58.1-3606, for use (i) in religious worship services by a congregation or church membership while meeting together in a single location and (ii) in the libraries, offices, meeting or counseling rooms or other rooms in the public church buildings used in carrying out the work of the church and its related ministries, including kindergarten, elementary and secondary schools.

The exemption for such churches shall also include baptistries;

bulletins, programs, newspapers and newsletters that do not contain paid advertising and are used in carrying out the work of the church;

gifts including food for distribution outside the public church building;

food, disposable serving items, cleaning supplies and teaching materials used in the operation of camps or conference centers by the church or an organization composed of churches that are exempt under this subdivision and which are used in carrying out the work of the church or churches;

and property used in caring for or maintaining property owned by the church including, but not limited to, mowing equipment;

and building materials installed by the church, and for which the church does not contract with a person or entity to have installed, in the public church buildings used in carrying out the work of the church and its related ministries, including, but not limited to worship services;

administrative rooms;

and kindergarten, elementary, and secondary schools.

17.

Medical products and supplies, which are otherwise taxable, such as bandages, gauze dressings, incontinence products and wound-care products, when purchased by a Medicaid recipient through a Department of Medical Assistance Services provider agreement.

18.

Beginning July 1, 2007, and ending July 1, 2012, multifuel heating stoves used for heating an individual purchaser's residence.

"Multifuel heating stoves" are stoves that are capable of burning a wide variety of alternative fuels, including, but not limited to, shelled corn, wood pellets, cherry pits, and olive pits.

19.

Fabrication of animal meat, grains, vegetables, or other foodstuffs when the purchaser (i) supplies the foodstuffs and they are consumed by the purchaser or his family, (ii) is an organization exempt from taxation under § 501(c)(3) or (c)(4) of the Internal Revenue Code, or (iii) donates the foodstuffs to an organization exempt from taxation under § 501(c)(3) or (c)(4) of the Internal Revenue Code.

20.

Beginning July 1, 2018, and ending July 1, 2022, parts, engines, and supplies used for maintaining, repairing, or reconditioning aircraft or any aircraft's avionics system, engine, or component parts.

This exemption shall not apply to tools and other equipment not attached to or that does not become a part of the aircraft.

For purposes of this subdivision, "aircraft" shall include both manned and unmanned systems.

21.

The following menstrual supplies:

pads, tampons, and menstrual cups.

ThatOn thisand actafter July 1, 2005, the tax rate on such food and essential personal hygiene products shall be knownone asand Theone-half Dignitypercent Act.of the gross sales price.

[The 3.revenue from the tax shall be distributed as follows:

That(i) the provisionsrevenue from the tax at the rate of thisone-half actpercent shall becomebe effectivedistributed onas Julyprovided 1,in 2020.subsection A of § 58.1-638 and (ii) the revenue from the tax at the rate of one percent shall be distributed as provided in subsections B, C and D of § 58.1-638.

4.B.

ThatThe the provisions of this actsection shall not becomeaffect effective unless an appropriation effectuating the purposesimposition of thistax acton isfood includedpurchased infor ahuman generalconsumption appropriationand actessential passedpersonal inhygiene 2019products bypursuant theto General§§ Assembly58.1-605 thatand becomes58.1-606. law.

C.

1.

As used in this section, "food purchased for human consumption" has the same meaning as "food" defined in the Food Stamp Act of 1977, 7 U.S.C.

§ 2012, as amended, and federal regulations adopted pursuant to that Act, except it shall not include seeds and plants which produce food for human consumption.

For the purpose of this section, "food purchased for human consumption" shall not include food sold by any retail establishment where the gross receipts derived from the sale of food prepared by such retail establishment for immediate consumption on or off the premises of the retail establishment constitutes more than 80 percent of the total gross receipts of that retail establishment, including but not limited to motor fuel purchases, regardless of whether such prepared food is consumed on the premises of that retail establishment.

For purposes of this section, "retail establishment" means each place of business for which any "dealer," as defined in § 58.1-612, is required to apply for and receive a certificate of registration pursuant to § 58.1-613.

2.

As used in this section, "essential personal hygiene products" means (i) nondurable incontinence products such as diapers, disposable undergarments, pads, and bed sheets;

and (ii) menstrual cups and pads, pantyliners, sanitary napkins, tampons, and other products used to absorb or contain menstrual flow.

"Essential personal hygiene products" does not include any item that is otherwise exempt pursuant to this chapter.

2.

That the provisions of this act shall become effective on January 1, 2020.