Bulletin Number
VTB 84-7
Tax Type
Property Tax
Description
1984 Legislative Changes
Topic
Property Subject to Tax
Date Issued
06-11-1984
1984 Legislative Changes Regarding Intangible Personal Property
Computer Application Software
H.B. 211, enacted by the 1984 Session of the General Assembly, amends § 58-405 of the Code of Virginia by classifying ant defining computer application software, except inventory of a computer software manufacturer, as intangible personal property exempt from taxation. Inventory of a computer software manufacturer continues to be defined as intangible personal property. This bill is effective July 1, 1984.
Certain Motor Vehicles
The 1984 Session of the General Assembly enacted H.B. 320 which provides that motor vehicles used in manufacturing, mining, radio or television broadcasting, cable television, dairy, dry cleaning or laundry businesses, except those registered with the Division of Motor Vehicles for use on the highways, are includible in and to be taxed as machinery and tools. The bill also clarifies the definition of intangible personal property by referencing the capital of a trade or business. The effective date of the bill is July 1, 1984.
Cable Television Businesses
H.B. 827, enacted by the 1984 Session of the General Assembly, separately states and redefines the personal property, tangible in fact, of cable television businesses which constitutes intangible personal property. As redefined, intangible personal property includes, for cable television businesses only, all personal property, tangible in fact, except machines and tools, motor vehicles and delivery equipment, trunk and feeder cables, studio equipment, antennae and office furniture and equipment.
The new definition removes any property of cable television businesses from the "machinery and tools" category for local taxation. Tuners and converters used in the cable television business, previously subject to local taxation, have been defined as intangible personal property by this amendment. The effective date of this bill is July 1, 1984.
Tax Rate Repealed
The 1984 Session of the General Assembly enacted S.B. 127 which includes a provision which repeals the tax on intangible personal property. Under the amendment, intangible personal property will be exempt from state and local taxation. It will not be necessary for taxpayers to file Form 761 for 1985 or subsequent years. The effective date of the provision relating to the elimination of the tax rate is January 1, 1985.
Tax Bulletins