58.1-604.1 - Use tax on motor vehicles, machinery, tools and equipment brought into Virginia for use in performing contracts.
§ 58.1-604.1. Use tax on motor vehicles, machinery, tools and equipmentbrought into Virginia for use in performing contracts.
In addition to the use tax levied pursuant to § 58.1-604 and notwithstandingthe provisions of § 58.1-611, a use tax is levied upon the storage or use ofall motor vehicles, machines, machinery, tools or other equipment brought,imported or caused to be brought into this Commonwealth for use inconstructing, building or repairing any building, highway, street, sidewalk,bridge, culvert, sewer or water system, drainage or dredging system, railwaysystem, reservoir or dam, hydraulic or power plant, transmission line, tower,dock, wharf, excavation, grading, or other improvement or structure, or anypart thereof. The rate of tax is three and one-half percent through midnighton July 31, 2004, and four percent beginning on and after August 1, 2004, onall tangible personal property except motor vehicles, which shall be taxed atthe rate of three percent; aircraft, which shall be taxed at the rate of twopercent; and watercraft, which shall be taxed at the rate of two percent witha maximum tax of $1,000.
For purposes of this section the words "motor vehicle" means any vehiclewhich is self-propelled and designed primarily for use upon the highways, anyvehicle which is propelled by electric power obtained from trolley wires butnot operated upon rails, and any vehicle designed to run upon the highwayswhich is pulled by a self-propelled vehicle, but shall not include anyimplement of husbandry, farm tractor, road construction or maintenancemachinery or equipment, special mobile equipment or any vehicle designedprimarily for use in work off the highway.
The tax shall be computed on the basis of such proportion of the originalpurchase price of such property as the duration of time of use in thisCommonwealth bears to the total useful life thereof. For purposes of thissection, the word "use" means use, storage, consumption and "stand-by"time occasioned by weather conditions, controversies or other causes. The taxshall be computed upon the basis of the relative time each item of equipmentis in this Commonwealth rather than upon the basis of actual use. In theabsence of satisfactory evidence as to the period of use intended in thisCommonwealth, it will be presumed that such property will remain in thisCommonwealth for the remainder of its useful life, which shall be determinedin accordance with the experiences and practices of the building andconstruction trades.
A transaction taxed under §§ 58.1-604, 58.1-605, 58.1-1402, 58.1-1502, or §58.1-2402 shall not also be taxed under this section, nor shall the sametransaction be taxed more than once under any section.
(1988, c. 379; 2004, Sp. Sess. I, c. 3.)