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<br />Exemptions.
<br />Section 4. The terms "sale at retail", "use", "storage" and "con-
<br />sumption" shall not include the following:
<br />(a) The sale, use, storage or consumption of industrial materials
<br />for future processing, manufacture, refining or conversion into arti-
<br />cles of tangible personal property for resale where such industrial
<br />materials become a component part of the finished product; nor shall
<br />such terms include industrial materials that are coated upon or im-
<br />pregnated into the product at any stage of its processing, manu-
<br />facture, refining or conversion for resale; nor shall such terms in-
<br />clude machinery or tools or repair parts therefor or replacements
<br />thereof, fuel, or supplies, used directly in the processing, manufacture,
<br />refining, mining or conversion of products for sale or resale; nor
<br />shall such terms include materials, containers, labels, sacks, cans,
<br />drums or bags used for packaging tangible personal property for
<br />shipment or sale. This paragraph shall not be construed as excluding
<br />from the sales or use tax any motor vehicle which is subject to
<br />registration and licensing under the motor vehicle laws of the State.
<br />(b) Professional services such as services rendered by an archi-
<br />tect, attorney, physician, etc.
<br />(c) Insurance transactions such as life, casualty, performance
<br />bonds, etc.
<br />(d) Sales of goods made pursuant to bona fide written contracts
<br />entered into before the date of the enactment of this Ordinance, pro-
<br />vided delivery is made within ninety days after the effective date of
<br />this Ordinance.
<br />(e) Each and every agricultural commodity sold by any person
<br />to any other person who purchases not for direct consumption but
<br />for the purpose of acquiring raw products for use or for sale in the
<br />process of preparing, finishing or manufacturing such agricultural
<br />commodity for the ultimate retail consumer trade, except when such
<br />agricultural commodity is actually sold as a marketable or finished
<br />product to the ultimate consumer, and in no case shall more than one
<br />tax be exacted. The term "agricultural commodity", for the purposes
<br />of this subsection, shall mean horticultural, poultry and farm prod-
<br />ucts, and livestock and livestock products.
<br />(f) Commercial feeds, seed, fertilizers, liming materials, breeding
<br />and other livestock, baby chicks, turkey poults, agricultural chemicals,
<br />baler twine, containers for fruits and vegetables, or farm machinery,
<br />provided the same are sold to or purchased by farmers for use in
<br />agricultural production for market; livestock and livestock products,
<br />poultry and poultry products, farm and agricultural products when
<br />produced by the farmer and used or consumed by him and the mem-
<br />bers of his family; and sales of farm or domestic products or nursery
<br />products, ornamental or otherwise, or for the planting of nursery
<br />products as an incident to the sale thereof outside of the regular
<br />market houses and sheds of the City, provided that such products
<br />are grown or produced by the seller. The term "farm machinery"
<br />shall not include any motor vehicle which is subject to registration
<br />and licensing under ;the motor vehicle laws of the State. Nothing
<br />herein shall be construed to exclude from the tax levied by this
<br />Ordinance sales to ornamental nurserymen or florists except as ex-
<br />pressly set forth herein.
<br />(g) Tangible personal property sold for use by a person for lease
<br />or rental as an established business, or part of an established busi-
<br />ness, or incidental or germane to said business.
<br />(h) Motor vehicle fuels which are subject to the tax imposed by
<br />Chapters 13 and 14 of Title 58 of the Code of Virginia, as amended,
<br />and not subject to refund.
<br />(i) Gas, electricity or water when delivered to consumers through
<br />mains, lines or pipes, and telephone and telegraph services provided
<br />subscribers.
<br />(j) Tangible personal property sold or leased to a public service
<br />corporation for use or consumption by such corporation directly in
<br />the rendition of its public service; but this provision shall not be
<br />construed as excluding from the sales or use tax any motor vehicle
<br />which is subject to registration and licensing under the motor ve-
<br />hicle laws of the State.
<br />(k) The sale, use or storage of material which becomes an integral
<br />part of, or which is used directly in, processing the ultimate service
<br />sold.
<br />(1) Broadcasting equipment and parts and accessories thereto and
<br />towers used or to be used by commercial radio and television com-
<br />panies or concerns which are under the regulation and supervision
<br />of the Federal Communications Commission; but this provision shall
<br />not' be construed as excluding from the sales or use tax any motor
<br />vehicle which is subject to registration and licensing under the motor
<br />vehicle laws of the State.
<br />(m) Any publication issued daily or regularly at average intervals
<br />not exceeding three months, except that newsstand or store sales
<br />of the same are taxable.
<br />(n) Meals and school supplies sold by non-profit schools to pupils
<br />and employees thereof ; and, the sale of textbooks used in public or
<br />private schools including colleges and universities.
<br />(o) An "occasional sale", which means a sale of tangible personal
<br />_- --�- _ ..----- —may -y -
<br />property not held or used by a seller in the course of an activity for
<br />which he is required to hold a certificate of registration, including
<br />the sale of all or substantially all the assets of any business and the
<br />reorganization of -any business, provided such sale is not one of a
<br />series of sales sufdient in number, scope and character to constitute
<br />an activity requiring the holding of a certificate of registration.
<br />(p) Sales which the Gty would be without power to tax under the
<br />limitations of the Constitution of the United States, together with
<br />sales to the United States and the State, and to any county, city or
<br />town of the State, or othcie political subdivision of the State.
<br />(q) Drugs, medicine', medical appliances, eyeglasses and equip-
<br />ment purchased for use by human beings on prescription of a practi-
<br />tioner lawfully practicing his profession in Virginia and licensed by
<br />the laws of this State.
<br />(r) Sale to a nonresident of the City for consumption or use out-
<br />side the City and delivery of such to the purchaser outside the city.
<br />(s) Sales made directly to and for the use or consumption of
<br />churches, or church supported universities, colleges, schools, orphan-
<br />ages, homes for the aged, hospitals or other such charitable institu-
<br />tions which are operated exclusively as educational, religious or
<br />charitable institutions where no pecuniary profit can or does re-
<br />sult to any shareholder or individual and which have been issued
<br />certificates of exemption by the Commissioner; but this provision
<br />shall not be construed as excluding from the sales or use tax any
<br />motor vehicle which is subject to registration and licensing under the
<br />motor vehicle laws of the state.
<br />(t) Receipts derived from admission charges of recreational facili-
<br />ties operated by the city.
<br />(u) Receipts derived from transportation fares by such means of
<br />conveyances as planes, trains, busses, jitneys, sightseeing busses,
<br />taxicabs or other similar conveyances.
<br />(v) Receipts derived from the operation of parking lots.
<br />(w) All materials for and services performed in the construction
<br />of new buildings or additions thereto; provided, however, whether
<br />built-in or free standing, a stove, refrigerator, dishwasher, garbage
<br />disposal unit, freezer, washing and drying machine or window air -
<br />conditioner or other appliances and furnishings such as rugs, furni-
<br />ture, venetialYitlgi&'� draperies, etc., and the installation thereof
<br />shall not be exehl? cj
<br />Further deiinitionAV,
<br />Section 5. (a), The term "gross sales" means the sum total of all
<br />retail sales of tnngible personal property or services as defined in_
<br />this Ordinance, without any deduction whatsoever of any kind or
<br />character, except as provided in this Ordinance. "Gross sales" shall
<br />not include the Federal retailers' excise tax if this excise tax is billed
<br />to the consumer separately from the selling price of the article.
<br />(b) "Sales price" means the total amount for which tangible per-
<br />sonal property or services are sold, including any services that are
<br />part of the sale, valued in money, whether paid in money or otherwise,
<br />and includes any amount for which credit is given to the purchaser,
<br />consumer or lessee by the dealer, without any deduction therefrom
<br />on account of the cost of the property sold, the cost of materials
<br />used, labor or service costs, losses or any other expenses whatsoever;
<br />provided that the credit given for used articles taken in trade or in a
<br />series of trades as a credit or part payment on the sale of new or
<br />used articles, and any cash discount allowed and taken on the sale,
<br />shall not be included in the sales price; nor shall the sales price in-
<br />clude finance charges, carrying charges or interest from credit ex-
<br />tended on sales of tangible personal property under conditional sales
<br />contracts or other conditional contracts providing for deferred pay-
<br />ment of the purchase price.
<br />(c) "Cost price" means the actual cost of articles of tangible per-
<br />sonal property without any deductions therefrom on account of the
<br />cost of materials used, labor or service costs, transportation charges
<br />or any expenses whatsoever.
<br />(d) "Lease or rental" means the leasing or renting of tangible
<br />personal property and the possession or use thereof by the lessee for
<br />a consideration, without transfer of the title of such property.
<br />(e) "Storage" includes any keeping or retention of tangible per-
<br />sonal property in the City for use, consumption or distribution, or
<br />for any purpose other than sale at retail in the regular course of
<br />business.
<br />(f) "Use" includes the exercise of any right or power over tangible
<br />personal property incident to the ownership thereof, except that it
<br />does not include the sale at retail of that property in the regular
<br />course of business.
<br />(g) "Business" includes any activity engaged in by any person, or
<br />caused to be engaged in by him, with the object of gain, benefit or
<br />advantage, either direct or indirect.
<br />(h.)= -,"Retailer" includes every person engaged in the business of
<br />making sales at retail, or for use, consumption or distribution, or
<br />storage to be used, consumed or distributed in the City.
<br />(i) "Commissioner" means the Commissioner of the Revenue for
<br />the City.
<br />(j) "Tangible personal property" includes personal property which
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