                                 CODE OF VIRGINIA

DEFINITIONS (§ 58.1-602)

As used in this chapter, unless the context clearly shows
otherwise:		&#8220;Accommodations&#8221; means any room or rooms, lodgings, or
accommodations in any hotel, motel, inn, tourist camp, tourist cabin, camping
grounds, club, short-term rental, or any other place in which rooms, lodging,
space, or accommodations are regularly furnished to transients for a
consideration. &#8220;Accommodations&#8221; does not include rooms or space
offered by a person in the business of providing conference rooms, meeting
space, or event space if the person does not also offer rooms available for
overnight sleeping.		&#8220;Accommodations fee&#8221; means the room charge less
the discount room charge, if any, provided that the accommodations fee shall not
be less than $0.		&#8220;Accommodations intermediary&#8221; means any person
other than an accommodations provider that (i) facilitates the sale of an
accommodation and (ii) either (a) charges a room charge to the customer, and
charges an accommodations fee to the customer, which fee it retains as
compensation for facilitating the sale; (b) collects a room charge from the
customer; or (c) charges a fee, other than an accommodations fee, to the
customer, which fee it retains as compensation for facilitating the sale. For
purposes of this definition, &#8220;facilitates the sale&#8221; includes
brokering, coordinating, or in any other way arranging for the purchase of the
right to use accommodations via a transaction directly, including via one or
more payment processors, between a customer and an accommodations
provider.		&#8220;Accommodations intermediary&#8221; does not include a person:

1. If the accommodations are provided by an accommodations provider operating
under a trademark, trade name, or service mark belonging to such person;

2. Who facilitates the sale of an accommodation if (i) the price paid by the
customer to such person is equal to the price paid by such person to the
accommodations provider for the use of the accommodations and (ii) the only
compensation received by such person for facilitating the sale of the
accommodation is a commission paid from the accommodations provider to such
person; or

3. Who is licensed as a real estate licensee pursuant to Article 1 (&#xA7;
54.1-2100 et seq.) of Chapter 21 of Title 54.1, when acting within the scope of
such license.
			&#8220;Accommodations provider&#8221; means any person that furnishes
accommodations to the general public for compensation. The term
&#8220;furnishes&#8221; includes the sale of use or possession or the sale of
the right to use or possess.			&#8220;Advertising&#8221; means the planning,
creating, or placing of advertising in newspapers, magazines, billboards,
broadcasting and other media, including, without limitation, the providing of
concept, writing, graphic design, mechanical art, photography and production
supervision. Any person providing advertising as defined in this section shall
be deemed to be the user or consumer of all tangible personal property purchased
for use in such advertising.			&#8220;Affiliate&#8221; means the same as such
term is defined in &#xA7; 58.1-439.18.			&#8220;Amplification, transmission,
distribution, and network equipment&#8221; means production, distribution, and
other equipment used to provide Internet-access services, such as computer and
communications equipment and software used for storing, processing, and
retrieving end-user subscribers&#8217; requests. A &#8220;network&#8221;
includes modems, fiber optic cables, coaxial cables, radio equipment, routing
equipment, switching equipment, a cable modem termination system, associated
software, transmitters, power equipment, storage devices, servers, multiplexers,
and antennas, which network is used to provide Internet service, regardless of
whether the provider of such service is also a telephone common carrier or
whether such network is also used to provide services other than Internet
services.			&#8220;Business&#8221; includes any activity engaged in by any
person, or caused to be engaged in by him, with the object of gain, benefit or
advantage, either directly or indirectly.			&#8220;Cost price&#8221; means the
actual cost of an item or article of tangible personal property computed in the
same manner as the sales price as defined in this section without any deductions
therefrom on account of the cost of materials used, labor, or service costs,
transportation charges, or any expenses whatsoever.			&#8220;Custom
program&#8221; means a computer program that is specifically designed and
developed only for one customer. The combining of two or more prewritten
programs does not constitute a custom computer program. A prewritten program
that is modified to any degree remains a prewritten program and does not become
custom.			&#8220;Discount room charge&#8221; means the full amount charged by
the accommodations provider to the accommodations intermediary, or an affiliate
thereof, for furnishing the accommodations.			&#8220;Distribution&#8221; means
the transfer or delivery of tangible personal property for use, consumption, or
storage by the distributee, and the use, consumption, or storage of tangible
personal property by a person that has processed, manufactured, refined, or
converted such property, but does not include the transfer or delivery of
tangible personal property for resale or any use, consumption, or storage
otherwise exempt under this chapter.			&#8220;Gross proceeds&#8221; means the
charges made or voluntary contributions received for the lease or rental of
tangible personal property or for furnishing services, computed with the same
deductions, where applicable, as for sales price as defined in this section over
the term of the lease, rental, service, or use, but not less frequently than
monthly. &#8220;Gross proceeds&#8221; does not include finance charges, carrying
charges, service charges, or interest from credit extended on the lease or
rental of tangible personal property under conditional lease or rental contracts
or other conditional contracts providing for the deferred payments of the lease
or rental price.			&#8220;Gross sales&#8221; means the sum total of all retail
sales of tangible personal property or services as defined in this chapter,
without any deduction, except as provided in this chapter. &#8220;Gross
sales&#8221; does not include the federal retailers&#8217; excise tax or the
federal diesel fuel excise tax imposed in &#xA7; 4091 of the Internal Revenue
Code if the excise tax is billed to the purchaser separately from the selling
price of the article, or the Virginia retail sales or use tax, or any sales or
use tax imposed by any county or city under &#xA7; 58.1-605 or
58.1-606.			&#8220;Import&#8221; and &#8220;imported&#8221; are words applicable
to tangible personal property imported into the Commonwealth from other states
as well as from foreign countries, and &#8220;export&#8221; and
&#8220;exported&#8221; are words applicable to tangible personal property
exported from the Commonwealth to other states as well as to foreign
countries.			&#8220;In this Commonwealth&#8221; or &#8220;in the
Commonwealth&#8221; means within the limits of the Commonwealth of Virginia and
includes all territory within these limits owned by or ceded to the United
States of America.			&#8220;Integrated process,&#8221; when used in relation to
semiconductor manufacturing, means a process that begins with the research or
development of semiconductor products, equipment, or processes, includes the
handling and storage of raw materials at a plant site, and continues to the
point that the product is packaged for final sale and either shipped or conveyed
to a warehouse. Without limiting the foregoing, any semiconductor equipment,
fuel, power, energy, supplies, or other tangible personal property shall be
deemed used as part of the integrated process if its use contributes, before,
during, or after production, to higher product quality, production yields, or
process efficiencies. Except as otherwise provided by law, &#8220;integrated
process&#8221; does not mean general maintenance or
administration.			&#8220;Internet&#8221; means, collectively, the myriad of
computer and telecommunications facilities, which comprise the interconnected
worldwide network of computer networks that employ the Transmission Control
Protocol/Internet Protocol, or any predecessor or successor to such protocol, to
communicate information of all kinds by wire or radio.			&#8220;Internet
service&#8221; means a service that enables users to access content,
information, and other services offered over the Internet.			&#8220;Lease or
rental&#8221; means the leasing or renting of tangible personal property and the
possession or use thereof by the lessee or renter for a consideration, without
transfer of the title to such property.			&#8220;Manufacturing, processing,
refining, or conversion&#8221; includes the production line of the plant
starting with the handling and storage of raw materials at the plant site and
continuing through the last step of production where the product is finished or
completed for sale and conveyed to a warehouse at the production site, and also
includes equipment and supplies used for production line testing and quality
control. &#8220;Manufacturing&#8221; also includes the necessary ancillary
activities of newspaper and magazine printing when such activities are performed
by the publisher of any newspaper or magazine for sale daily or regularly at
average intervals not exceeding three months.			The determination of whether any
manufacturing, mining, processing, refining or conversion activity is industrial
in nature shall be made without regard to plant size, existence or size of
finished product inventory, degree of mechanization, amount of capital
investment, number of employees or other factors relating principally to the
size of the business. Further, &#8220;industrial in nature&#8221; includes, but
is not limited to, those businesses classified in codes 10 through 14 and 20
through 39 published in the Standard Industrial Classification Manual for 1972
and any supplements issued thereafter.			&#8220;Modular building&#8221; means,
but is not limited to, single and multifamily houses, apartment units,
commercial buildings, and permanent additions thereof, comprised of one or more
sections that are intended to become real property, primarily constructed at a
location other than the permanent site, built to comply with the Virginia
Industrialized Building Safety Law (&#xA7; 36-70 et seq.) as regulated by the
Virginia Department of Housing and Community Development, and shipped with most
permanent components in place to the site of final assembly. For purposes of
this chapter, &#8220;modular building&#8221; does not include a mobile office as
defined in &#xA7; 58.1-2401 or any manufactured building subject to and
certified under the provisions of the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. &#xA7; 5401 et
seq.).			&#8220;Modular building manufacturer&#8221; means a person that owns or
operates a manufacturing facility and is engaged in the fabrication,
construction and assembling of building supplies and materials into modular
buildings, as defined in this section, at a location other than at the site
where the modular building will be assembled on the permanent foundation and may
or may not be engaged in the process of affixing the modules to the foundation
at the permanent site.			&#8220;Modular building retailer&#8221; means any
person that purchases or acquires a modular building from a modular building
manufacturer, or from another person, for subsequent sale to a customer residing
within or outside of the Commonwealth, with or without installation of the
modular building to the foundation at the permanent site.			&#8220;Motor
vehicle&#8221; means a &#8220;motor vehicle&#8221; as defined in &#xA7;
58.1-2401, taxable under the provisions of the Virginia Motor Vehicles Sales and
Use Tax Act (&#xA7; 58.1-2400 et seq.) and upon the sale of which all applicable
motor vehicle sales and use taxes have been paid.			&#8220;Occasional
sale&#8221; means a sale of tangible personal property not held or used by a
seller in the course of an activity for which it is required to hold a
certificate of registration, including the sale or exchange of all or
substantially all the assets of any business and the reorganization or
liquidation of any business, provided that such sale or exchange is not one of a
series of sales and exchanges sufficient in number, scope and character to
constitute an activity requiring the holding of a certificate of
registration.			&#8220;Open video system&#8221; means an open video system
authorized pursuant to 47 U.S.C. &#xA7; 573 and, for purposes of this chapter
only, also includes Internet service regardless of whether the provider of such
service is also a telephone common carrier.			&#8220;Person&#8221; includes any
individual, firm, copartnership, cooperative, nonprofit membership corporation,
joint venture, association, corporation, estate, trust, business trust, trustee
in bankruptcy, receiver, auctioneer, syndicate, assignee, club, society, or
other group or combination acting as a unit, body politic or political
subdivision, whether public or private, or quasi-public, and the plural of
&#8220;person&#8221; means the same as the singular.			&#8220;Prewritten
program&#8221; means a computer program that is prepared, held or existing for
general or repeated sale or lease, including a computer program developed for
in-house use and subsequently sold or leased to unrelated third
parties.			&#8220;Qualifying locality&#8221; means Charlotte County, Gloucester
County, Halifax County, Henry County, Mecklenburg County, Northampton County,
Patrick County, Pittsylvania County, or the City of Danville.			&#8220;Railroad
rolling stock&#8221; means locomotives, of whatever motive power, autocars,
railroad cars of every kind and description, and all other equipment determined
by the Tax Commissioner to constitute railroad rolling stock.			&#8220;Remote
seller&#8221; means any dealer deemed to have sufficient activity within the
Commonwealth to require registration under &#xA7; 58.1-613 under the criteria
specified in subdivision C 10 or 11 of &#xA7; 58.1-612 or any software provider
acting on behalf of such dealer.			&#8220;Retail sale&#8221; or a &#8220;sale at
retail&#8221; means a sale to any person for any purpose other than for resale
in the form of tangible personal property or services taxable under this
chapter, and shall include any such transaction as the Tax Commissioner upon
investigation finds to be in lieu of a sale. All sales for resale must be made
in strict compliance with regulations applicable to this chapter. Any dealer
making a sale for resale which is not in strict compliance with such regulations
shall be personally liable for payment of the tax.			The terms &#8220;retail
sale&#8221; and a &#8220;sale at retail&#8221; specifically include the
following: (i) the sale or charges for any accommodations furnished to
transients for less than 90 continuous days; (ii) sales of tangible personal
property to persons for resale when because of the operation of the business, or
its very nature, or the lack of a place of business in which to display a
certificate of registration, or the lack of a place of business in which to keep
records, or the lack of adequate records, or because such persons are minors or
transients, or because such persons are engaged in essentially service
businesses, or for any other reason there is likelihood that the Commonwealth
will lose tax funds due to the difficulty of policing such business operations;
(iii) the separately stated charge made for automotive refinish repair materials
that are permanently applied to or affixed to a motor vehicle during its repair;
and (iv) the separately stated charge for equipment available for lease or
purchase by a provider of satellite television programming to the customer of
such programming. Equipment sold to a provider of satellite television
programming for subsequent lease or purchase by the customer of such programming
shall be deemed a sale for resale. The Tax Commissioner is authorized to
promulgate regulations requiring vendors of or sellers to such persons to
collect the tax imposed by this chapter on the cost price of such tangible
personal property to such persons and may refuse to issue certificates of
registration to such persons. The terms &#8220;retail sale&#8221; and a
&#8220;sale at retail&#8221; also specifically include the separately stated
charge made for supplies used during automotive repairs whether or not there is
transfer of title or possession of the supplies and whether or not the supplies
are attached to the automobile. The purchase of such supplies by an automotive
repairer for sale to the customer of such repair services shall be deemed a sale
for resale.			The term &#8220;transient&#8221; does not include a purchaser of
camping memberships, time-shares, condominiums, or other similar contracts or
interests that permit the use of, or constitute an interest in, real estate,
however created or sold and whether registered with the Commonwealth or not.
Further, a purchaser of a right or license which entitles the purchaser to use
the amenities and facilities of a specific real estate project on an ongoing
basis throughout its term shall not be deemed a transient, provided, however,
that the term or time period involved is for seven years or more.			The terms
&#8220;retail sale&#8221; and &#8220;sale at retail&#8221; do not include a
transfer of title to tangible personal property after its use as tools, tooling,
machinery or equipment, including dies, molds, and patterns, if (i) at the time
of purchase, the purchaser is obligated, under the terms of a written contract,
to make the transfer and (ii) the transfer is made for the same or a greater
consideration to the person for whom the purchaser manufactures
goods.			&#8220;Retailer&#8221; means every person engaged in the business of
making sales at retail, or for distribution, use, consumption, or storage to be
used or consumed in the Commonwealth.			&#8220;Room charge&#8221; means the full
retail price charged to the customer for the use of the accommodations before
taxes. &#8220;Room charge&#8221; includes any fee charged to the customer and
retained as compensation for facilitating the sale, whether described as an
accommodations fee, facilitation fee, or any other name. The room charge shall
be determined in accordance with 23VAC10-210-730 and the related rulings of the
Department on the same.			&#8220;Sale&#8221; means any transfer of title or
possession, or both, exchange, barter, lease or rental, conditional or
otherwise, in any manner or by any means whatsoever, of tangible personal
property and any rendition of a taxable service for a consideration, and
includes the fabrication of tangible personal property for consumers who
furnish, either directly or indirectly, the materials used in fabrication, and
the furnishing, preparing, or serving for a consideration of any tangible
personal property consumed on the premises of the person furnishing, preparing,
or serving such tangible personal property. A transaction whereby the possession
of property is transferred but the seller retains title as security for the
payment of the price shall be deemed a sale.			&#8220;Sales price&#8221; means
the total amount for which tangible personal property or services are sold,
including any services that are a part of the sale, valued in money, whether
paid in money or otherwise, and includes any amount for which credit is given to
the purchaser, consumer, or lessee by the dealer, without any deduction
therefrom on account of the cost of the property sold, the cost of materials
used, labor or service costs, losses or any other expenses whatsoever.
&#8220;Sales price&#8221; does not include (i) any cash discount allowed and
taken; (ii) finance charges, carrying charges, service charges or interest from
credit extended on sales of tangible personal property under conditional sale
contracts or other conditional contracts providing for deferred payments of the
purchase price; (iii) separately stated local property taxes collected; (iv)
that portion of the amount paid by the purchaser as a discretionary gratuity
added to the price of a meal; or (v) that portion of the amount paid by the
purchaser as a mandatory gratuity or service charge added by a restaurant to the
price of a meal, but only to the extent that such mandatory gratuity or service
charge does not exceed 20 percent of the price of the meal. Where used articles
are taken in trade, or in a series of trades as a credit or part payment on the
sale of new or used articles, the tax levied by this chapter shall be paid on
the net difference between the sales price of the new or used articles and the
credit for the used articles.			&#8220;Semiconductor cleanrooms&#8221; means the
integrated systems, fixtures, piping, partitions, flooring, lighting, equipment,
and all other property used to reduce contamination or to control airflow,
temperature, humidity, vibration, or other environmental conditions required for
the integrated process of semiconductor manufacturing.			&#8220;Semiconductor
equipment&#8221; means (i) machinery or tools or repair parts or replacements
thereof; (ii) the related accessories, components, pedestals, bases, or
foundations used in connection with the operation of the equipment, without
regard to the proximity to the equipment, the method of attachment, or whether
the equipment or accessories are affixed to the realty; (iii) semiconductor
wafers and other property or supplies used to install, test, calibrate or
recalibrate, characterize, condition, measure, or maintain the equipment and
settings thereof; and (iv) equipment and supplies used for quality control
testing of product, materials, equipment, or processes; or the measurement of
equipment performance or production parameters regardless of where or when the
quality control, testing, or measuring activity takes place, how the activity
affects the operation of equipment, or whether the equipment and supplies come
into contact with the product.			&#8220;Short-term rental&#8221; means the same
as such term is defined in &#xA7; 15.2-983.			&#8220;Storage&#8221; means any
keeping or retention of tangible personal property for use, consumption or
distribution in the Commonwealth, or for any purpose other than sale at retail
in the regular course of business.			&#8220;Tangible personal property&#8221;
means personal property that may be seen, weighed, measured, felt, or touched,
or is in any other manner perceptible to the senses. &#8220;Tangible personal
property&#8221; does not include stocks, bonds, notes, insurance or other
obligations or securities. &#8220;Tangible personal property&#8221; includes (i)
telephone calling cards upon their initial sale, which shall be exempt from all
other state and local utility taxes, and (ii) manufactured
signs.			&#8220;Use&#8221; means the exercise of any right or power over
tangible personal property incident to the ownership thereof, except that it
does not include the sale at retail of that property in the regular course of
business. &#8220;Use&#8221; does not include the exercise of any right or power,
including use, distribution, or storage, over any tangible personal property
sold to a nonresident donor for delivery outside of the Commonwealth to a
nonresident recipient pursuant to an order placed by the donor from outside the
Commonwealth via mail or telephone. &#8220;Use&#8221; does not include any sale
determined to be a gift transaction, subject to tax under &#xA7;
58.1-604.6.			&#8220;Use tax&#8221; refers to the tax imposed upon the use,
consumption, distribution, and storage as defined in this section.			&#8220;Used
directly,&#8221; when used in relation to manufacturing, processing, refining,
or conversion, refers to those activities that are an integral part of the
production of a product, including all steps of an integrated manufacturing or
mining process, but not including ancillary activities such as general
maintenance or administration. When used in relation to mining, &#8220;used
directly&#8221; refers to the activities specified in this definition and, in
addition, any reclamation activity of the land previously mined by the mining
company required by state or federal law.			&#8220;Video programmer&#8221; means
a person that provides video programming to end-user subscribers.			&#8220;Video
programming&#8221; means video and/or information programming provided by or
generally considered comparable to programming provided by a cable operator,
including, but not limited to, Internet service.

HISTORY: Code 1950, §§ 58-441.2, 58-441.3, 58-441.6; 1966, c. 151; 1972, c.
680; 1973, c. 313; 1974, c. 431; 1976, cc. 375, 489, 666, 712, 764, 770; 1977,
cc. 247, 504; 1978, cc. 50, 82, 181, 505, 656, 665, 706, 784, 819; 1979, cc.
148, 205, 555, 556, 557, 558, 561, 562, 564, 572, 575; 1980, cc. 81, 610, 611,
617, 618, 621, 631, 753, 756; 1981, cc. 398, 400, 405, 409, 416, 599; 1982, cc.
533, 546, 547, 636, 649; 1983, cc. 100, 184, 384, 414, 557, 565, 599; 1984, cc.
419, 522, 675, 683, 690, 693; 1985, c. 473; 1986, c. 22; 1988, c. 899; 1989, cc.
581, 739; 1995, c. 96; 1999, cc. 138, 187, 723, 981; 2000, c. 425; 2004, c. 60;
2005, cc. 121, 122, 355; 2006, cc. 519, 541, 568, 602; 2007, c. 751; 2013, cc.
766, 783; 2014, c. 359; 2015, c. 252; 2017, c. 104; 2018, cc. 838, 840; 2019,
cc. 815, 816, 854; 2020, cc. 327, 427, 428, 705, 708, 865; 2021, Sp. Sess. I, c.
383; 2022, cc. 7, 154, 434, 435, 640.