Bill Text: VA SB414 | 2012 | Regular Session | Chaptered
Bill Title: Retail Sales and Use Tax; clarifies amount of revenue authorized tourism project is entitled.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-04-04 - Governor: Acts of Assembly Chapter text (CHAP0572) [SB414 Detail]
Download: Virginia-2012-SB414-Chaptered.html
Be it enacted by the General Assembly of Virginia: 1. That §58.1-3851.1 of the Code of Virginia is amended and reenacted as follows: §58.1-3851.1. Entitlement to tax revenues from tourism project. A. For purposes of this section, unless the context requires a different meaning: "Economic development authority" means a local industrial development authority or a local or regional political subdivision, the public purpose of which is to assist in economic development. "Gap financing" means debt financing to compensate for a shortfall in project funding between the expected development costs of an authorized tourism project and the debt and equity capital provided by the developer of the project. B. 1. If a locality has established a tourism zone pursuant to
§58.1-3851, has adopted an ordinance establishing a tourism plan as determined
by guidelines set forth by the Virginia Tourism Authority, and has adopted an
ordinance authorizing a tourism project to meet a deficiency identified in the
adopted tourism plan approved by the Virginia Tourism Authority, and the
tourism project has been certified by the State Comptroller as qualifying for
the entitlement to tax revenues authorized by this section, the authorized
tourism project shall be entitled to an amount equal to the revenues
generated by a one percent 2. On a quarterly basis, the Tax Commissioner shall certify the amount of the entitled sales tax revenues to the Comptroller, who shall remit such revenues to the county or city in which the authorized tourism project is located. The county or city shall remit the revenues to the economic development authority. No payments herein shall be made until an agreement exists between the developer of the authorized tourism project and the economic development authority. 3. The state sales tax entitlement established in subdivision 1 shall not include any sales tax revenues dedicated pursuant to §58.1-638 or 58.1-638.1. C. If a locality has adopted the ordinances required by
subdivision B 1 to entitle an authorized tourism project to an amount equal
to the revenues generated by a one percent D. Prior to any entitlement to tax revenues for an authorized
tourism project pursuant to subsections B and C, the owner of such project
shall have a minimum of 80 percent of funding for the project in place through
debt or equity, enter into a performance agreement with the economic
development authority or political subdivision, and enter into an agreement to
pay an access fee. The access fee shall be equivalent to the E. In the event that the total amount of sales tax entitlement and the access fee exceeds any annual debt service on the qualified gap financing, such excess shall be paid to the principal of the loan until the qualified gap financing is paid in full. |