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EXEMPTIONS.
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<br />SECTION 4. THE TERMS "SALE AT RETAIL", "USE", "STORAGE" AND "CONSUMPTION" SHALL NOT INCLUDE THE FOLLOWING:
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<br />(A) THE SALE, USE, STORAGE OR CONSUMPTION OF INDUSTRIAL MATERIALS FOR FUTURE PROCESSING, MANUFACTURE,
<br />
<br />REFINING OR CONVERSION INTO ARTICLES OF TANGIBLE PERSONAL PROPERTY FOR RESALE WHERE SUCH INDUSTRIAL
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<br />MATERIALS BECOME A COMPONENT PART OF THE FINISHED PRODUCT; NOR SHALL SUCH TERMS INCLUDE INDUSTRIAL
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<br /> MATERIALS THAT ARE COATED UPON OR IMPREGNATED INTO THE PRODUCT AT ANY STAGE OF ITS PROCESSING,
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<br />MANUFACTURE, REFINING OR CONVERSION FOR RESALE; NOR SHALL SUCH TERMS INCLUDE MACHINERY OR TOOLS
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<br />OR REPAIR PARTS THEREFOR OR REPLACEMENTS THEREOF, FUEL, OR SUPPLIES, USED DIRECTLY IN THE PROCESSING,
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<br />MANUFACTURE, REFINING, MINING OR CONVERSION OF PRODUCTS FOR SALE OR RESALE; NOR SHALL SUCH TERMS
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<br /> INCLUDE MATERIALS, CONTAINERS, LABELS, SACKS, CANS, DRUMS OR BAGS USED FOR PACKAGING TANGIBLE PERSONAL
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<br /> PROPERTY FOR SHIPMENT OR SALE. THIS PARAGRAPH SHALL NOT BE CONSTRUED AS EXCLUDING FROM THE SALES OR
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<br />USE TAX ANY MOTOR VEHICLE WHICH IS SUBJECT TO REGISTRATION AND LICENSING UNDER THE MOTOR VEHICLE LAWS
<br />
<br />OF THE STATE.
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<br />(B) PROFESSIONAL SERVICES SUCH AS SERVICES RENDERED BY AN ARCHITECT, ATTORNEY, PHYSICIAN, ETC.
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<br />(C) INSURANCE TRANSACTIONS SUCH AS LIFE, CASUALTY, PERFORMANCE BONDS, ETC.
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<br />(D) SALES OF GOODS MADE PURSUANT TO BONA FIDE WRITTEN CONTRACTS ENTERED INTO BEFORE THE DATE OF
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<br /> THE ENACTMENT OF THIS ORDINANCE, PROVIDED DELIVERY IS MADE WITHIN NINETY DAYS AFTER THE EFFECTIVE
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<br />DATE OF THIS ORDINANCE.
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<br />(E) EACH AND EVERY AGRICULTURAL COMMODITY SOLD BY ANY PERSON TO ANY OTHER PERSON WHO PURCHASES
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<br /> NOT FOR DIRECT CONSUMPTION BUT FOR THE PURPOSE OF ACQUIRING RAW PRODUCTS FOR USE OR FOR SALE IN
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<br />THE PROCESS OF PREPARING, FINISHING OR MANUFACTURING SUCH AGRICULTURAL COMMODITY FOR THE ULTIMATE
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<br />RETAIL CONSUMER TRADE, EXCEPT WHEN SUCH AGRICULTURAL COMMODITY IS ACTUALLY SOLD AS A MARKETABLE
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<br /> OR FINISHED PRODUCT TO THE ULTIMATE CONSUMER, AND IN NO CASE SHALL MORE THAN ONE TAX BE EXACTED. THE
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<br /> TERM "AGRICULTURAL COMMODITY", FOR THE PURPOSES OF THIS SUBSECTION, SHALL MEAN HORTICULTURAL, POULTRY
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<br /> AND FARM PRODUCTS, AND LIVESTOCK AND LIVESTOCK PRODUCTS.
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<br />(F) COMMERCIAL FEEDS, SEED, FERTILIZERS, LIMING MATERIALS, BREEDING AND OTHER LIVESTOCK, BABY CHICKS, TURKEY
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<br /> POULTS, AGRICULTURAL CHEMICALS, BALER TWINE, CONTAINERS FOR FRUITS AND VEGETABLES, OR FARM MACHINERY,
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<br />PROVIDED THE SAME ARE SOLD TO OR PURCHASED BY FARMERS FOR USE IN AGRICULTURAL PRODUCTION FOR MARKET;
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<br />LIVESTOCK AND LIVESTOCK PRODUCTS, POULTRY AND POULTRY PRODUCTS, FARM AND AGRICULTURAL PRODUCTS WHEN
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<br /> PRODUCED BY THE FARMER AND USED OR CONSUMED BY HIM AND THE MEMBERS OF HIS FAMILY; AND SALES OF FARM
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<br />OR DOMESTIC PRODUCTS OR NURSERY PRODUCTS, ORNAMENTAL OR OTHERWISE, OR FOR THE PLANTING OF NURSERY
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<br />PRODUCTS AS AN INCIDENT TO THE SALE THEREOF OUTSIDE OF THE REGULAR MARKET HOUSES AND SHEDS OF THE
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<br /> CITY, PROVIDED THAT SUCH PRODUCTS ARE GROWN OR PRODUCED BY THE SELLER. THE TERM "FARM MACHINERY" SHALL
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<br /> NOT INCLUDE ANY MOTOR VEHICLE WHICH IS SUBJECT TO REGISTRATION AND LICENSING UNDER THE MOTOR VEHICLE
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<br /> LAWS OF THE STATE. NOTHING HEREIN SHALL BE CONSTRUED TO EXCLUDE FROM THE TAX LEVIED BY THIS ORDINANCE
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<br /> SALES TO ORNAMENTAL NURSERYMEN OR FLORISTS EXCEPT AS EXPRESSLY SET FORTH HEREIN.
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<br />(G) TANGIBLE PERSONAL PROPERTY SOLD FOR USE BY A PERSON FOR LEASE OR RENTAL AS AN ESTABLISHED BUSINESS,
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<br />OR PART OF AN ESTABLISHED BUSINESS, OR INCIDENTAL OR GERMANE TO SAID BUSINESS.
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<br />(H) MOTOR VEHICLE FUELS WHICH ARE SUBJECT TO THE TAX IMPOSED BY CHAPTERS 13 AND 14 OF TITLE
<br />
<br />58 OF THE CODE OF VIRGINIA, AS AMENDED, AND NOT SUBJECT TO REFUND.
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<br />(I) GAS, ELECTRICITY OR WATER WHEN DELIVERED TO CONSUMERS THROUGH MAINS, LINES OR PIPES, AND
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<br />TELEPHONE AND TELEGRAPH SERVICES PROVIDED SUBSCRIBERS.
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<br />(J) TANGIBLE PERSONAL PROPERTY SOLD OR LEASED TO A PUBLIC SERVICE CORPORATION FOR USE OR
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<br />CONSUMPTION BY SUCH CORPORATION DIRECTLY IN THE RENDITION OF ITS PUBLIC SERVICE; BUT THIS PROVISION
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<br />SHALL NOT BE CONSTRUED AS EXCLUDING FROM THE SALES OR USE TAX ANY MOTOR VEHICLE WHICH IS SUBJECT
<br />
<br /> TO REGISTRATION AND LICENSING UNDER THE MOTOR VEHICLE LAWS OF THE STATE.
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<br />(K) THE SALE, USE OR STORAGE OF MATERIAL WHICH BECOMES AN INTEGRAL PART OF, OR WHICH IS USED DIRECTLY IN,
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<br />PROCESSING THE ULTIMATE SERVICE SOLD.
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<br />(L) BROADCASTING EQUIPMENT AND PARTS AND ACCESSORIES THERETO AND TOWERS USED OR TO BE USED BY
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<br /> COMMERCIAL RADIO AND TELEVISION COMPANIES OR CONCERNS WHICH ARE UNDER THE REGULATION AND
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<br />SUPERVISION OF THE FEDERAL COMMUNICATIONS COMMISSION; BUT THIS PROVISION SHALL NOT BE CONSTRUED
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<br />AS EXCLUDING FROM THE SALES OR USE TAX ANY MOTOR VEHICLE WHICH IS SUBJECT TO REGISTRATION AND
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<br /> LICENSING UNDER THE MOTOR VEHICLE LAWS OF THE STATE.
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<br />(M) ANY PUBLICATION ISSUED DAILY OR REGULARLY AT AVERAGE INTERVALS NOT EXCEEDING THREE MONTHS,
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<br />EXCEPT THAT NEWSSTAND OR STORE SALES OF THE SAME ARE TAXABLE.
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<br />(N) MEALS AND SCHOOL SUPPLIES SOLD BY NON-PROFIT SCHOOLS TO PUPILS AND EMPLOYEES THEREOF; AND,
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<br />THE SALE OF TEXTBOOKS USED IN PUBLIC OR PRIVATE SCHOOLS INCLUDING COLLEGES AND UNIVERSITIES.
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<br />(O) AN "OCCASIONAL SALE", WHICH MEANS A SALE OF TANGIBLE PERSONAL PROPERTY NOT HELD OR USED BY A
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<br /> SELLER IN THE COURSE OF AN ACTIVITY FOR WHICH HE IS REQUIRED TO HOLD A CERTIFICATE OF REGISTRATION,
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<br />INCLUDING THE SALE OF ALL OR SUBSTANTIALLY ALL THE ASSETS OF ANY BUSINESS AND THE REORGANIZATION
<br />
<br />OF ANY BUSINESS, PROVIDED SUCH SALE IS NOT ONE OF A SERIES OF SALES SUFFICIENT IN NUMBER, SCOPE AND
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<br /> CHARACTER TO CONSTITUTE AN ACTIVITY REQUIRING THE HOLDING OF A CERTIFICATE OF REGISTRATION.
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<br />(P) SALES WHICH THE CITY WOULD BE WITHOUT POWER TO TAX UNDER THE LIMITATIONS OF THE CONSTITUTION OF
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<br /> THE UNITED STATES, TOGETHER WITH SALES TO THE UNITED STATES AND THE STATE, AND TO ANY COUNTY, CITY
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<br /> OR TOWN OF THE STATE, OR OTHER POLITICAL SUBDIVISION OF THE STATE.
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<br />(Q) DRUGS, MEDICINES, MEDICAL APPLIANCES, EYEGLASSES AND EQUIPMENT PURCHASED FOR USE BY HUMAN
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<br /> BEINGS ON PRESCRIPTION OF A PRACTITIONER LAWFULLY PRACTICING HIS PROFESSION IN VIRGINIA AND LICENSED
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<br /> BY THE LAWS OF THIS STATE.
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<br />(R) SALE TO A NONRESIDENT OF THE CITY FOR CONSUMPTION OR USE OUTSIDE THE CITY AND DELIVERY OF SUCH TO
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<br /> THE PURCHASER OUTSIDE THE CITY.
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<br />(S) SALES MADE DIRECTLY TO AND FOR THE USE OR CONSUMPTION OF CHURCHES, OR CHURCH SUPPORTED
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<br /> UNIVERSITIES, COLLEGES, SCHOOLS, ORPHANAGES, HOMES FOR THE AGED, HOSPITALS OR OTHER SUCH
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<br />CHARITABLE INSTITUTIONS WHICH ARE OPERATED EXCLUSIVELY AS EDUCATIONAL, RELIGIOUS OR CHARITABLE
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<br /> INSTITUTIONS WHERE NO PECUNIARY PROFIT CAN OR DOES RESULT TO ANY SHAREHOLDER OR INDIVIDUAL AND
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<br /> WHICH HAVE BEEN ISSUED CERTIFICATES OF EXEMPTION BY THE COMMISSIONER; BUT THIS PROVISION SHALL
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<br /> NOT BE CONSTRUED AS EXCLUDING FROM THE SALES OR USE TAX ANY MOTOR VEHICLE WHICH IS SUBJECT TO
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<br /> REGISTRATION AND LICENSING UNDER THE MOTOR VEHICLE LAWS OF THE STATE.
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<br />(T) RECEIPTS DERIVED FROM ADMISSION CHARGES OF RECREATIONAL FACILITIES OPERATED BY THE CITY.
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<br />(U) RECEIPTS DERIVED FROM TRANSPORTATION FARES BY SUCH MEANS OF CONVEYANCES AS PLANES, TRAINS,
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<br />BUSSES, JITNEYS, SIGHTSEEING BUSSES, TAXICABS OR OTHER SIMILAR CONVEYANCES.
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<br />(V) RECEIPTS DERIVED FROM THE OPERATION OF PARKING LOTS.
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<br />(W) ALL MATERIALS FOR AND SERVICES PERFORMED IN THE CONSTRUCTION OF NEW BUILDINGS OR ADDITIONS
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<br /> THERETO; PROVIDED, HOWEVER, WHETHER BUILT-IN OR FREE STANDING, A STOVE, REFRIGERATOR, DISHWASHER,
<br />
<br />GARBAGE DISPOSAL UNIT, FREEZER, WASHING AND DRYING MACHINE OR WINDOW AIR-CONDITIONER OR OTHER
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<br /> APPLIANCES AND FURNISHINGS SUCH AS RUGS, FURNITURE, VENETIAN BLINDS, DRAPERIES, ETC., AND THE
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<br /> INSTALLATION THEREOF SHALL NOT BE EXEMPT.
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<br />FURTHER DEFINITIONS.
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<br />SECTION 5. (A) THE TERM "GROSS SALES" MEANS THE SUM TOTAL OF ALL RETAIL SALES OF TANGIBLE
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<br />PERSONAL PROPERTY OR SERVICES AS DEFINED IN THIS ORDINANCE, WITHOUT ANY DEDUCTION WHATSOEVER
<br />
<br /> OF ANY KIND OR CHARACTER, EXCEPT AS PROVIDED IN THIS ORDINANCE. "GROSS SALES" SHALL NOT INCLUDE
<br />
<br />THE FEDERAL RETAILERS' EXCISE TAX IF THIS EXCISE TAX IS BILLED TO THE CONSUMER SEPARATELY FROM THE
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<br />SELLING PRICE OF THE ARTICLE.
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<br />(B) "SALES PRICE" MEANS THE TOTAL AMOUNT FOR WHICH TANGIBLE PERSONAL PROPERTY OR SERVICES ARE
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<br />SOLD, INCLUDING ANY SERVICES THAT ARE PART OF THE SALE, VALUED IN MONEY, WHETHER PAID IN MONEY OR
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<br /> OTHERWISE, AND INCLUDES ANY AMOUNT FOR WHICH CREDIT IS GIVEN TO THE PURCHASER, CONSUMER OR
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<br /> LESSEE BY THE DEALER, WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF THE COST OF THE PROPERTY
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<br /> SOLD, THE COST OF MATERIALS USED, LABOR OR SERVICE COSTS, LOSSES OR ANY OTHER EXPENSES
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<br /> WHATSOEVER; PROVIDED THAT THE CREDIT GIVEN FOR USED ARTICLES TAKEN IN TRADE OR IN A SERIES
<br />
<br /> OF TRADES AS A CREDIT OR PART PAYMENT ON THE SALE OF NEW OR USED ARTICLES, AND ANY CASH
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<br /> DISCOUNT ALLOWED AND TAKEN ON THE SALE, SHALL NOT BE INCLUDED IN THE SALES PRICE; NOR SHALL
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<br /> THE SALES PRICE INCLUDE FINANCE CHARGES, CARRYING CHARGES OR INTEREST FROM CREDIT EXTENDED
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<br /> ON SALES OF TANGIBLE PERSONAL PROPERTY UNDER CONDITIONAL SALES CONTRACTS OR OTHER CONDITIONAL
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<br /> CONTRACTS PROVIDING FOR DEFERRED PAYMENT OF THE PURCHASE PRICE.
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<br />(C) "COST PRICE" MEANS THE ACTUAL COST OF ARTICLES OF TANGIBLE PERSONAL PROPERTY WITHOUT ANY
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<br /> DEDUCTIONS THEREFROM ON ACCOUNT OF THE COST OF MATERIALS USED, LABOR OR SERVICE COSTS,
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<br />TRANSPORTATION CHARGES OR ANY EXPENSES WHATSOEVER.
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<br />(D) "LEASE OR RENTAL" MEANS THE LEASING OR RENTING OF TANGIBLE PERSONAL PROPERTY AND THE
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<br /> POSSESSION OR USE THEREOF BY THE LESSEE FOR A CONSIDERATION, WITHOUT TRANSFER OF THE TITLE
<br />
<br /> OF SUCH PROPERTY.
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<br />(E) "STORAGE" INCLUDES ANY KEEPING OR RETENTION OF TANGIBLE PERSONAL PROPERTY IN THE CITY FOR USE,
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<br /> CONSUMPTION OR DISTRIBUTION, OR FOR ANY PURPOSE OTHER THAN SALE AT RETAIL IN THE REGULAR COURSE
<br />
<br /> OF BUSINESS.
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<br />(F) "USE" INCLUDES THE EXERCISE OF ANY RIGHT OR POWER OVER TANGIBLE PERSONAL PROPERTY INCIDENT
<br />
<br /> TO THE OWNERSHIP THEREOF, EXCEPT THAT IT DOES NOT INCLUDE THE SALE AT RETAIL OF THAT PROPERTY.
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