2011 Code of Virginia
Title 58.1 TAXATION.
Chapter 6 Retail Sales and Use Tax (58.1-600 thru 58.1-639)
58.1-639 Transitional provisions

58.1-639. Transitional provisions.

A. To the extent of the one-half percent increase in the state sales and use tax rate effective August 1, 2004, enacted by the 2004 Special Session I of the Virginia General Assembly, the Tax Commissioner, upon application of the purchaser in accordance with regulations promulgated by the Commissioner, shall have the authority to refund state sales or use taxes paid on purchases of tangible personal property made pursuant to bona fide real estate construction contracts, contracts for the sale of tangible personal property, and leases, provided that the real estate construction contract, contract for the sale of tangible personal property or lease is entered into prior to the date of enactment of such increase in the state sales and use tax rate; and further provided that the date of delivery of the tangible personal property is on or before October 31, 2004. The term "bona fide contract," when used in this section in relation to real estate construction contracts, shall include but not be limited to those contracts which are entered into prior to the enactment of such increase in the state sales and use tax rate, provided that such contracts include plans and specifications.

B. Notwithstanding the foregoing October 31, 2004, delivery date requirement, with respect to bona fide real estate construction contracts which contain a specific and stated date of completion, the date of delivery of such tangible personal property shall be on or before the completion date of the applicable project.

C. Applications for refunds pursuant to this section shall be made in accordance with the provisions of 58.1-1823. Interest computed in accordance with 58.1-1833 shall be added to the tax refunded pursuant to this section.

(1986, Sp. Sess., c. 12; 2004, Sp. Sess. I, c. 3.)