2006 Code of Virginia § 58.1-612 - Tax collectible from dealers; "dealer" defined; jurisdiction

58.1-612. Tax collectible from dealers; "dealer" defined; jurisdiction.

A. The tax levied by 58.1-603 and 58.1-604 shall be collectible from allpersons who are dealers, as hereinafter defined, and who have sufficientcontact with the Commonwealth to qualify under subsections B and C hereof.

B. The term "dealer," as used in this chapter, shall include every personwho:

1. Manufactures or produces tangible personal property for sale at retail,for use, consumption, or distribution, or for storage to be used or consumedin this Commonwealth;

2. Imports or causes to be imported into this Commonwealth tangible personalproperty from any state or foreign country, for sale at retail, for use,consumption, or distribution, or for storage to be used or consumed in thisCommonwealth;

3. Sells at retail, or who offers for sale at retail, or who has in hispossession for sale at retail, or for use, consumption, or distribution, orfor storage to be used or consumed in this Commonwealth, tangible personalproperty;

4. Has sold at retail, used, consumed, distributed, or stored for use orconsumption in this Commonwealth, tangible personal property and who cannotprove that the tax levied by this chapter has been paid on the sale atretail, the use, consumption, distribution, or storage of such tangiblepersonal property;

5. Leases or rents tangible personal property for a consideration, permittingthe use or possession of such property without transferring title thereto;

6. Is the lessee or rentee of tangible personal property and who pays to theowner of such property a consideration for the use or possession of suchproperty without acquiring title thereto;

7. As a representative, agent, or solicitor, of an out-of-state principal,solicits, receives and accepts orders from persons in this Commonwealth forfuture delivery and whose principal refuses to register as a dealer under 58.1-613; or

8. Becomes liable to and owes this Commonwealth any amount of tax imposed bythis chapter, whether he holds, or is required to hold, a certificate ofregistration under 58.1-613.

C. A dealer shall be deemed to have sufficient activity within theCommonwealth to require registration under 58.1-613 if he:

1. Maintains or has within this Commonwealth, directly or through an agent orsubsidiary, an office, warehouse, or place of business of any nature;

2. Solicits business in this Commonwealth by employees, independentcontractors, agents or other representatives;

3. Advertises in newspapers or other periodicals printed and published withinthis Commonwealth, on billboards or posters located in this Commonwealth, orthrough materials distributed in this Commonwealth by means other than theUnited States mail;

4. Makes regular deliveries of tangible personal property within thisCommonwealth by means other than common carrier. A person shall be deemed tobe making regular deliveries hereunder if vehicles other than those operatedby a common carrier enter this Commonwealth more than twelve times during acalendar year to deliver goods sold by him;

5. Solicits business in this Commonwealth on a continuous, regular, seasonal,or systematic basis by means of advertising that is broadcast or relayed froma transmitter within this Commonwealth or distributed from a location withinthis Commonwealth;

6. Solicits business in this Commonwealth by mail, if the solicitations arecontinuous, regular, seasonal, or systematic and if the dealer benefits fromany banking, financing, debt collection, or marketing activities occurring inthis Commonwealth or benefits from the location in this Commonwealth ofauthorized installation, servicing, or repair facilities;

7. Is owned or controlled by the same interests which own or control abusiness located within this Commonwealth;

8. Has a franchisee or licensee operating under the same trade name in thisCommonwealth if the franchisee or licensee is required to obtain acertificate of registration under 58.1-613; or

9. Owns tangible personal property that is rented or leased to a consumer inthis Commonwealth, or offers tangible personal property, on approval, toconsumers in this Commonwealth.

D. Notwithstanding any other provision of this section, the following shallnot be considered to determine whether a person who has contracted with acommercial printer for printing in the Commonwealth is a "dealer" andwhether such person has sufficient contact with the Commonwealth to berequired to register under 58.1-613:

1. The ownership or leasing by that person of tangible or intangible propertylocated at the Virginia premises of the commercial printer which is usedsolely in connection with the printing contract with the person;

2. The sale by that person of property of any kind printed at and shipped ordistributed from the Virginia premises of the commercial printer;

3. Activities in connection with the printing contract with the personperformed by or on behalf of that person at the Virginia premises of thecommercial printer; and

4. Activities in connection with the printing contract with the personperformed by the commercial printer within Virginia for or on behalf of thatperson.

E. In addition to the jurisdictional standards contained in subsection C ofthis section, nothing contained herein (other than subsection D) shall limitany authority which this Commonwealth may enjoy under the provisions offederal law or an opinion of the United States Supreme Court to require thecollection of sales and use taxes by any dealer who regularly orsystematically solicits sales within this Commonwealth. Furthermore, nothingcontained in subsection C shall require any broadcaster, printer, outdooradvertising firm, advertising distributor, or publisher which broadcasts,publishes, or displays or distributes paid commercial advertising in thisCommonwealth which is intended to be disseminated primarily to consumerslocated in this Commonwealth to report or impose any liability to pay any taximposed under this chapter solely because such broadcaster, printer, outdooradvertising firm, advertising distributor, or publisher accepted suchadvertising contracts from out-of-state advertisers or sellers.

(Code 1950, 58-441.12; 1966, c. 151; 1979, c. 573; 1984, c. 675; 1991, cc.544, 565; 1995, c. 276.)