Effective July 1, 2022, new procedures have been implemented for obtaining tax exemption certifications on the majority of projects. For projects involving equipment, facilities, devices, or other property intended for use by a political subdivision in conjunction with the operation of its water, wastewater, stormwater, or solid waste management facilities or systems, certification requests must be submitted to the subdivision certifying authority. These requests may be certificated proactively (i.e. prior to project completion).
As stated in § 58.1-3660.B:
“except that in the case of equipment, facilities, devices, or other property intended for use by any political subdivision in conjunction with the operation of its water, wastewater, stormwater, or solid waste management facilities or systems, including property that may be financed pursuant to Chapter 22 (§ 62.1-224 et seq.) of Title 62.1, the state certifying authority or subdivision certifying authority having jurisdiction with respect to such property shall, upon the request of the political subdivision, make such certification prospectively for property to be constructed, reconstructed, erected, or acquired for such purposes…”).
Additionally, these requests must also be submitted directly to the Virginia Department of Taxation for processing. Below are instructions for obtaining an ST11-A form from the Department of Taxation:
1. Submission Method:
- By mail: Virginia TAX, P.O. Box 1115, Richmond, VA 23218-1115
- By fax: 804-254-6111
2. Required Information:
- Type of ST-11A exemption being requested
- Federal Employer Identification Number (FEIN)
- A copy of the contract award letter
- A description of the work to be performed
- A detailed list of materials to determine eligibility for exemption
- The job site address
- The project owner
- The project’s completion date
3. Additional Documentation:
- Include a letter from the subdivision certifying authority certifying that the project qualifies as pollution control equipment and facilities.
4. Status Inquires:
- To check the status of your submission, contact the Department of Taxation Business Customer Service at 804-367-8037. Please indicate that your inquiry is regarding an ST11-A form and provide your Federal ID.
For privately owned projects that will not be transferred to a political subdivision upon completion, certification requests must still go through the Virginia Department of Environmental Quality (DEQ) Regional Office. These certifications must be submitted retroactively, indicating that the property has already been constructed, reconstructed, erected, or acquired.
In this request, please include the following information:
- Owner Name and Address
- Project Name
- Project or Contract Number
- Project Completion Date
- Physical Location of Equipment or Facilities
- Equipment/Facility Description (Provide the functional name of the pollution abatement or prevention equipment item(s) subject to this request, and state their specific purpose. Provide or attach a list of equipment items or categories of equipment included in this request.)
- Identify the applicable DEQ program or requirements applicable to the equipment/facility
- Statement of Conformity: Clearly state whether the equipment/facility was or will be in conformity with all applicable state environmental program requirements at the time of its acquisition or construction. (In other words, the project should not be in response to the requirements of an Enforcement action or Court order related to alleged non-compliance with environmental laws or regulations.)
Please bear in mind it is the applicant’s responsibility to itemize those components which perform the pollution or abatement function. The buyer (and possibly seller) of such equipment may ultimately bear the burden of proof to the Virginia Department of Taxation or other taxing body that the portion of the equipment’s total cost on which tax is not being paid is in fact tax exempt.
The letter requesting the exemption should be accompanied by the following application certification, with original signature, by an appropriate responsible company official: “I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations."
An appropriate responsible company official may include:
- For a corporation: by a responsible corporate officer. For the purpose of this section, a responsible corporate officer means: (i) a president, secretary, treasurer, or vice-president of the corporation in charge of a principal business function, or any other person who performs similar policy-making or decision-making functions for the corporation, or (ii) the manager of one or more manufacturing, production, or operating facilities, provided the manager is authorized to make management decisions that govern the operation of the regulated facility, including having the explicit or implicit duty of making major capital investment recommendations, and initiating and directing other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; the manager can ensure that the necessary systems are established or actions taken to gather complete and accurate information for permit application requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures;
- For a partnership or sole proprietorship: by a general partner or the proprietor, respectively; or
- For a municipality, state, federal, or other public agency: by either a principal executive officer or ranking elected official. For purposes of this section, a principal executive officer of a federal agency includes: (i) the chief executive officer of the agency, or (ii) a senior executive officer having responsibility for the overall operations of a principal geographic unit of the agency.
Upon receipt, DEQ staff will evaluate your request for completeness. If additional information is needed to complete the request, DEQ staff will notify you of any deficiencies needing a response. If DEQ does not receive an adequate response within 30 days of its deficiency notification, it will consider the request closed and no further agency action will be taken. To reactivate a closed case, another request for tax exempt certification will need to be submitted. If DEQ staff determines the request to be complete and appropriate, DEQ will certify to the Virginia Department of Taxation that the request involves equipment or facilities whose primary purpose is for the abatement or control of pollution in conformance with the state program. DEQ does not grant the tax exemption itself; the Department of Taxation does. In turn, the Department of Taxation will make the final decision regarding tax exemption and then notify you of their decision directly.
