SALT Report 1479 – The Virginia State Legislature recently passed a bill that expands the list of public transportation companies that qualify for an exemption from Virginia sales and use tax. Under the terms of HB 959 all transit companies that are owned, operated, or controlled by any county, city, or town and provide public transportation services will qualify for the exemption. Additionally, any tangible personal property sold or leased to any county, city, or town and subsequently transferred to any of these companies will be exempt from use tax.
Under current law, only tangible personal property sold or leased to the Alexandria Transit Company, Greater Lynchburg Transit Company, GRTC Transit System, and Greater Roanoke Transit Company is exempt from the retail sales and use tax.
These exemptions become effective July 1, 2012.
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