Language Page 440, after line 38, insert:"A. All additional state sales and use tax revenue generated by the amendments to § 58.1-609.3 of the Code of Virginia pursuant to enactments of the 2004 Special Session of the General Assembly shall be deposited into the general fund and distributed to localities pursuant to subsections B, C, and D of § 58.1-638 of the Code of Virginia (and in the percentage required thereunder) with the remaining additional revenue distributed as provided in this act.B. Revenues deposited into the Public Education Standards of Quality/Local Real Estate Property Tax Relief Fund established under § 58.1-638.1 of the Code of Virginia pursuant to enactments of the 2004 Special Session of the General Assembly shall be transferred to the general fund and used to meet the Commonwealth's responsibilities for the Standards of Quality prescribed pursuant to Article VIII, Section 2, of the Constitution of Virginia. The Comptroller shall take all actions necessary to effect such transfers monthly, no later than 10 days following the deposit to the Fund. The amounts transferred shall be distributed to localities as specified in Items 146 and 147 of this Act."
Explanation(This amendment contains language required to implement the tax provisions of House Bill 5018. The amendment clarifies that proceeds from the elimination of the sales tax exemptions for certain public service entities shall be directed to the general fund. As it relates to additional sales tax revenues generated by House Bill 5018, language creates a mechanism to allow for the distribution of the one-quarter percent increase in sales tax dedicated to elementary and secondary education under House Bill 5018. Language in Item 145.1 specifies that one-eighth percent of the proceeds will be distributed according to the composite index, and one-eighth percent according to school age population.)