Does the sales and use tax exemption apply to local sales taxes?
No. This exemption applies only to the State portion of the sales and use tax and not to any portion of the tax levied by localities. 17. Must qualifying businesses charge customers sales tax? Yes. The sales and use tax exemption applies only to items purchased for use or consumption by a qualifying business for the conduct of a trade or business within a Virginia Enterprise Zone. 18. Is a business firm within an Enterprise Zone which qualifies for the sales tax exemption required to pay sales and use tax? Yes, a qualifying business must pay the sales and use tax on tangible personal property at the time of purchase. Upon completing the necessary forms and receiving certification from the Department of Housing and Community Development, the business firm will receive a refund of the State portion of sales and use tax actually paid during the taxable year.
