‘CHAPTER 191

An Act to amend the Code of Virginia by adding thereto a new section
numbered 58-441.49:1, so as to authorize the councils of cities and
the governing bodies of counties to levy a city or county use tax, under
certain conditions and to what extent; and to provide for its collec-
tion and the distribution of the revenue derived therefrom.

[H 803]
Approved March 18, 1968

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto a new sec-
tion numbered 58-441.49 :1 as follows:

§ 58-441.49:1. Cities and counties may levy a local use tax to what
extent and under what conditions; collection thereof by State and return
of revenue to the cities and counties.—(a) The council of any city and
the governing body of any county which has levied or may hereafter levy
a city or county sales tax under § 58-441.49 may levy a city or county
use tax at the rate of one per cent to provide revenue for the general fund
of such city or county. Such tax shall be added to the rate of the State
use tax imposed by this chapter and shall be subject to all the provisions
of this chapter, and all amendments thereof, and the rules and regulations
published with respect thereto, except that the applicable brackets of
prices shall be as prescribed in § 58-441.51 for the combined State and
local tax, and except that no discount under § 58-441.25 shall be allowed
on a local use tax.

(b) The council of any city and the governing body of any county
desiring to impose a local use tax under this section may do so in the
manner following:

(1) If the city or county has previously imposed the local sales tax
authorized by § 58-441.49, the local use tax may be imposed by the coun-
cil or governing body by the adoption of a resolution by a majority of all
the members thereof, by a recorded yea and nay vote, stating its purpose
and referring to this section, and providing that the local use tax shall
become effective on the first day of a month at least sixty days after the
adoption of the resolution, but no local use tax shall become effective earlier
than July 1, 1968. A certified copy of such resolution shall forthwith be
forwarded to the Commissioner so that it will be received within five days
after its adoption. The resolution authorized by this paragraph may be
adopted in the manner stated notwithstanding any other provision of
law, including any charter provision.

(2) If the city or county has not imposed the local sales tax author-
ized by § 58-441.49, the local use tax may be imposed by ordinance to-
gether with the local sales tax in the manner set out in paragraphs (b)
and (c) of § 58-441.49; but no local use tax shall become effective earlier
than July 1, 1968.

(c) Any local use tax levied under this section shall be administered
and collected by the Commissioner in the same manner and subject to
the same penalties as provided for the State use tax, with the adjust-
ments required by § 58-441.51.

(d) The local use tax authorized by this section shall not apply to
transactions to which the sales tax applies, the situs of which for State
and local sales tax purposes is the city or county of location of each place
of business of every dealer paying the tax to the State without regard to
the city or county of possible use by the purchasers; but the local use
tax authorized by this section shall apply to tangible personal property
purchased without this State for use or consumption within the city or
county imposing the local use tax, or stored within the city or county
for use or consumption, where the property would have been subject to
the sales tax if it had been purchased within this State. The local use
tax shall also apply to leases or rentals of tangible personal property
where the place of business of the lessor is without this State and such
leases or rentals are subject to the State tax. Moreover, the local use tax
shall apply in all cases in which the State use tax applies.

(e) Out-of-State dealers who hold certificates of registration to col-
lect the use tax from their customers for remittance to this State, shall,
to the extent reasonably practicable, in filing their monthly use tax re-
turns with the Commissioner, break down their shipments into this State
by cities and counties so as to show the city or county of destination; but
if the out-of-State dealer is unable accurately to assign any shipment to
a particular city or county, the local use tax on the tangible personal prop-
erty involved shall be remitted to the State by such dealer without at-
tempting to assign the shipment to any city or county.

(f) Local use tax revenue shall be distributed among the cities and
counties for which it is collected. respectively, as shown by the records
of the Department of Taxation, and the procedure shall be the same as that
prescribed for distribution of local sales tax revenue under § 58-441.49;
but the local use tax revenue that is not accurately assignable to a particu-
lar citv or county shall he distributed monthly by the appropriate State
authorities among the cities and counties in this State imposing the local
use tax upon the basis of taxable retail sales in the respective cities and
counties in which the local sales and use tax was in effect in the taxable
month involved, as shown by the records of the Department of Taxation,
and computed with respect to taxable retail sales as reflected by the
amounts of the local sales tax revenue distributed among such cities and
counties, respectively, in the month of distribution.

(g) All local use tax revenue shall be used, applied or disbursed by
the cities and counties as provided in § 58-441.49 with respect to local
sales tax revenue.

2. An emergency exists and this act is in force from its passage.