2006 Code of Virginia § 58.1-638 - Disposition of state sales and use tax revenue; localities\' share; Game Protection Fund

58.1-638. Disposition of state sales and use tax revenue; localities'share; Game Protection Fund.

A. The Comptroller shall designate a specific revenue code number for all thestate sales and use tax revenue collected under the preceding sections ofthis chapter.

1. The sales and use tax revenue generated by the one-half percent sales anduse tax increase enacted by the 1986 Special Session of the General Assemblyshall be paid, in the manner hereinafter provided in this section, to theTransportation Trust Fund as defined in 33.1-23.03:1. Of the funds paid tothe Transportation Trust Fund, an aggregate of 4.2 percent shall be set asideas the Commonwealth Port Fund as provided in this section; an aggregate of2.4 percent shall be set aside as the Commonwealth Airport Fund as providedin this section; and an aggregate of 14.5 percent in fiscal year 1998-1999and 14.7 percent in fiscal year 1999-2000 and thereafter shall be set asideas the Commonwealth Mass Transit Fund as provided in this section. The Fund'sshare of such net revenue shall be computed as an estimate of the net revenueto be received into the state treasury each month, and such estimated paymentshall be adjusted for the actual net revenue received in the preceding month.All payments shall be made to the Fund on the last day of each month.

2. There is hereby created in the Department of the Treasury a specialnonreverting fund which shall be a part of the Transportation Trust Fund andwhich shall be known as the Commonwealth Port Fund.

a. The Commonwealth Port Fund shall be established on the books of theComptroller and the funds remaining in such Fund at the end of a bienniumshall not revert to the general fund but shall remain in the Fund. Interestearned on such funds shall remain in the Fund and be credited to it. Fundsmay be paid to any authority, locality or commission for the purposeshereinafter specified.

b. The amounts allocated pursuant to this section shall be allocated by theCommonwealth Transportation Board to the Board of Commissioners of theVirginia Port Authority to be used to support port capital needs and thepreservation of existing capital needs of all ocean, river, or tributaryports within the Commonwealth.

c. Commonwealth Port Fund revenue shall be allocated by the Board ofCommissioners to the Virginia Port Authority in order to foster and stimulatethe flow of maritime commerce through the ports of Virginia, including butnot limited to the ports of Richmond, Hopewell and Alexandria.

3. There is hereby created in the Department of the Treasury a specialnonreverting fund which shall be part of the Transportation Trust Fund andwhich shall be known as the Commonwealth Airport Fund. The CommonwealthAirport Fund shall be established on the books of the Comptroller and anyfunds remaining in such Fund at the end of a biennium shall not revert to thegeneral fund but shall remain in the Fund. Interest earned on the funds shallbe credited to the Fund. The funds so allocated shall be allocated by theCommonwealth Transportation Board to the Virginia Aviation Board. The fundsshall be allocated by the Virginia Aviation Board to any Virginia airportwhich is owned by the Commonwealth, a governmental subdivision thereof, or aprivate entity to which the public has access for the purposes enumerated in 5.1-2.16, or is owned or leased by the Metropolitan Washington AirportsAuthority (MWAA), as follows:

Any new funds in excess of $12.1 million which are available for allocationby the Virginia Aviation Board from the Commonwealth Transportation Fund,shall be allocated as follows: 60 percent to MWAA, up to a maximum annualamount of $2 million, and 40 percent to air carrier airports as provided insubdivision A 3 a. Except for adjustments due to changes in enplanedpassengers, no air carrier airport sponsor, excluding MWAA, shall receiveless funds identified under subdivision A 3 a than it received in fiscal year1994-1995.

Of the remaining amount:

a. Forty percent of the funds shall be allocated to air carrier airports,except airports owned or leased by MWAA, based upon the percentage ofenplanements for each airport to total enplanements at all air carrierairports, except airports owned or leased by MWAA. No air carrier airportsponsor, however, shall receive less than $50,000 nor more than $2 millionper year from this provision.

b. Forty percent of the funds shall be allocated by the Aviation Board forair carrier and reliever airports on a discretionary basis, except airportsowned or leased by MWAA.

c. Twenty percent of the funds shall be allocated by the Aviation Board forgeneral aviation airports on a discretionary basis.

4. There is hereby created in the Department of the Treasury a specialnonreverting fund which shall be a part of the Transportation Trust Fund andwhich shall be known as the Commonwealth Mass Transit Fund.

a. The Commonwealth Mass Transit Fund shall be established on the books ofthe Comptroller and any funds remaining in such Fund at the end of thebiennium shall not revert to the general fund but shall remain in the Fund.Interest earned on such funds shall be credited to the Fund. Funds may bepaid to any local governing body, transportation district commission, orpublic service corporation for the purposes hereinafter specified.

b. The amounts allocated pursuant to this section shall be used to supportthe public transportation administrative costs and the costs borne by thelocality for the purchase of fuels, lubricants, tires and maintenance partsand supplies for public transportation at a state share of 80 percent in 2002and 95 percent in 2003 and succeeding years. These amounts may be used tosupport up to 95 percent of the local or nonfederal share of capital projectcosts for public transportation and ridesharing equipment, facilities, andassociated costs. Capital costs may include debt service payments on local oragency transit bonds. The term "borne by the locality" means the localshare eligible for state assistance consisting of costs in excess of the sumof fares and other operating revenues plus federal assistance received by thelocality.

c. Commonwealth Mass Transit Fund revenue shall be allocated by theCommonwealth Transportation Board as follows:

(1) Funds for special programs, which shall include ridesharing, experimentaltransit, and technical assistance, shall not exceed 1.5 percent of the Fund.

(2) The Board may allocate these funds to any locality or planning districtcommission to finance up to 80 percent of the local share of all costsassociated with the development, implementation, and continuation ofridesharing programs.

(3) Funds allocated for experimental transit projects may be paid to anylocal governing body, transportation district commission, or publiccorporation or may be used directly by the Department of Rail and PublicTransportation for the following purposes:

(a) To finance up to 95 percent of the capital costs related to thedevelopment, implementation and promotion of experimental publictransportation and ridesharing projects approved by the Board.

(b) To finance up to 95 percent of the operating costs of experimental masstransportation and ridesharing projects approved by the Board for a period oftime not to exceed 12 months.

(c) To finance up to 95 percent of the cost of the development andimplementation of any other project designated by the Board where the purposeof such project is to enhance the provision and use of public transportationservices.

d. Funds allocated for public transportation promotion and operation studiesmay be paid to any local governing body, planning district commission,transportation district commission, or public transit corporation, or may beused directly by the Department of Rail and Public Transportation for thefollowing purposes and aid of public transportation services:

(1) At the approval of the Board to finance a program administered by theDepartment of Rail and Public Transportation designed to promote the use ofpublic transportation and ridesharing throughout Virginia.

(2) To finance up to 50 percent of the local share of public transportationoperations planning and technical study projects approved by the Board.

e. At least 73.5 percent of the Fund shall be distributed to each transitproperty in the same proportion as its operating expenses bear to the totalstatewide operating expenses and shall be spent for the purposes specified insubdivision 4 b.

f. The remaining 25 percent shall be distributed for capital purposes on thebasis of 95 percent of the nonfederal share for federal projects and 95percent of the total costs for nonfederal projects. In the event that totalcapital funds available under this subdivision are insufficient to fund thecomplete list of eligible projects, the funds shall be distributed to eachtransit property in the same proportion that such capital expenditure bearsto the statewide total of capital projects.

g. There is hereby created in the Department of the Treasury a specialnonreverting fund known as the Commonwealth Transit Capital Fund. TheCommonwealth Transit Capital Fund shall be part of the Commonwealth MassTransit Fund. The Commonwealth Transit Capital Fund subaccount shall beestablished on the books of the Comptroller and consist of such moneys as areappropriated to it by the General Assembly and of all donations, gifts,bequests, grants, endowments, and other moneys given, bequeathed, granted, orotherwise made available to the Commonwealth Transit Capital Fund. Any fundsremaining in the Commonwealth Transit Capital Fund at the end of the bienniumshall not revert to the general fund, but shall remain in the CommonwealthTransit Capital Fund. Interest earned on funds within the CommonwealthTransit Capital Fund shall remain in and be credited to the CommonwealthTransit Capital Fund. Proceeds of the Commonwealth Transit Capital Fund maybe paid to any political subdivision, another public entity created by an actof the General Assembly, or a private entity as defined in 56-557 and forpurposes as enumerated in subdivision 4c of 33.1-269 or expended by theDepartment of Rail and Public Transportation for the purposes specified inthis subdivision. Revenues of the Commonwealth Transit Capital Fund shall beused to support capital expenditures involving the establishment,improvement, or expansion of public transportation services through specificprojects approved by the Commonwealth Transportation Board. Projects financedby the Commonwealth Transit Capital Fund shall receive local, regional orprivate funding for at least 20 percent of the nonfederal share of the totalproject cost.

5. Funds for Metro shall be paid by the Northern Virginia TransportationCommission (NVTC) to the Washington Metropolitan Area Transit Authority(WMATA) and be a credit to the Counties of Arlington and Fairfax and theCities of Alexandria, Falls Church and Fairfax in the following manner:

a. Local obligations for debt service for WMATA rail transit bondsapportioned to each locality using WMATA's capital formula shall be paidfirst by NVTC. NVTC shall use 95 percent state aid for these payments.

b. The remaining funds shall be apportioned to reflect WMATA's allocationformulas by using the related WMATA-allocated subsidies and relative sharesof local transit subsidies. Capital costs shall include 20 percent of annuallocal bus capital expenses. Hold harmless protections and obligations forNVTC's jurisdictions agreed to by NVTC on November 5, 1998, shall remain ineffect.

Appropriations from the Commonwealth Mass Transit Fund are intended toprovide a stable and reliable source of revenue as defined by Public Law96-184.

B. The sales and use tax revenue generated by a one percent sales and use taxshall be distributed among the counties and cities of this Commonwealth inthe manner provided in subsections C and D.

C. The localities' share of the net revenue distributable under this sectionamong the counties and cities shall be apportioned by the Comptroller anddistributed among them by warrants of the Comptroller drawn on the Treasurerof Virginia as soon as practicable after the close of each month during whichthe net revenue was received into the state treasury. The distribution of thelocalities' share of such net revenue shall be computed with respect to thenet revenue received into the state treasury during each month, and suchdistribution shall be made as soon as practicable after the close of eachsuch month.

D. The net revenue so distributable among the counties and cities shall beapportioned and distributed upon the basis as certified to the Comptroller bythe Department of Education, of the number of children in each county andcity according to the most recent statewide census of school population takenby the Department of Education pursuant to 22.1-284, as adjusted in themanner hereinafter provided. No special school population census, other thana statewide census, shall be used as the basis of apportionment anddistribution except that in any calendar year in which a statewide census isnot reported, the Department of Education shall adjust such school populationfigures by the same percent of annual change in total population estimatedfor each locality by The Center for Public Service. The revenue soapportionable and distributable is hereby appropriated to the severalcounties and cities for maintenance, operation, capital outlays, debt andinterest payments, or other expenses incurred in the operation of the publicschools, which shall be considered as funds raised from local resources. Inany county, however, wherein is situated any incorporated town constituting aschool division, the county treasurer shall pay into the town treasury formaintenance, operation, capital outlays, debt and interest payments, or otherexpenses incurred in the operation of the public schools, the properproportionate amount received by him in the ratio that the school populationof such town bears to the school population of the entire county. If theschool population of any city or of any town constituting a school divisionis increased by the annexation of territory since the last preceding schoolpopulation census, such increase shall, for the purposes of this section, beadded to the school population of such city or town as shown by the last suchcensus and a proper reduction made in the school population of the county orcounties from which the annexed territory was acquired.

E. Beginning July 1, 2000, of the remaining sales and use tax revenue, therevenue generated by a two percent sales and use tax, up to an annual amountof $13 million, collected from the sales of hunting equipment, auxiliaryhunting equipment, fishing equipment, auxiliary fishing equipment,wildlife-watching equipment, and auxiliary wildlife-watching equipment inVirginia, as estimated by the most recent U.S. Department of the Interior,Fish and Wildlife Service and U.S. Department of Commerce, Bureau of theCensus National Survey of Fishing, Hunting, and Wildlife-AssociatedRecreation, shall be paid into the Game Protection Fund established under 29.1-101 and shall be used, in part, to defray the cost of law enforcement.Not later than 30 days after the close of each quarter, the Comptroller shalltransfer to the Game Protection Fund the appropriate amount of collections tobe dedicated to such Fund. At any time that the balance in the CapitalImprovement Fund, established under 29.1-101.1, is equal to or in excess of$35 million, any portion of sales and use tax revenues that would have beentransferred to the Game Protection Fund, established under 29.1-101, inexcess of the net operating expenses of the Board, after deduction of otheramounts which accrue to the Board and are set aside for the Game ProtectionFund, shall remain in the general fund until such time as the balance in theCapital Improvement Fund is less than $35 million.

F. 1. Of the net revenue generated from the one-half percent increase in therate of the state sales and use tax effective August 1, 2004, pursuant toenactments of the 2004 Special Session I of the General Assembly, theComptroller shall transfer from the general fund of the state treasury to thePublic Education Standards of Quality/Local Real Estate Property Tax ReliefFund established under 58.1-638.1 an amount equivalent to one-half of thenet revenue generated from such one-half percent increase as provided in thissubdivision. The transfers to the Public Education Standards of Quality/LocalReal Estate Property Tax Relief Fund under this subdivision shall be forone-half of the net revenue generated (and collected in the succeeding month)from such one-half percent increase for the month of August 2004 and for eachmonth thereafter.

2. For the purposes of the Comptroller making the required transfers undersubdivision 1, the Tax Commissioner shall make a written certification to theComptroller no later than the twenty-fifth of each month certifying the salesand use tax revenues generated in the preceding month. Within three calendardays of receiving such certification, the Comptroller shall make the requiredtransfers to the Public Education Standards of Quality/Local Real EstateProperty Tax Relief Fund.

G. If errors are made in any distribution, or adjustments are otherwisenecessary, the errors shall be corrected and adjustments made in thedistribution for the next quarter or for subsequent quarters.

H. The term "net revenue," as used in this section, means the gross revenuereceived into the general fund or the Transportation Trust Fund of the statetreasury under the preceding sections of this chapter, less refunds totaxpayers.

(Code 1950, 58-441.48; 1966, c. 151; 1976, c. 680; 1978, c. 773; 1980, c.559; 1984, c. 675; 1986, Sp. Sess., c. 12; 1991, cc. 666, 713; 1992, c. 167;1993, c. 793; 1995, cc. 539, 542; 1998, cc. 320, 905, 907; 1999, cc. 281,397, 898; 2000, cc. 694, 707; 2001, c. 171; 2004, Sp. Sess. I, c. 3.)