The legislation for Virginia’s recent rate increase includes a provision for a refund of the additional sales tax paid under the increase for certain contracts. Taxpayers will still be subject to the 5% tax effective September 1, 2004 but will be able to go directly to the state for a refund of % of the tax paid. In order for the refund to apply, a contract must be for bona fide real estate construction, contracts for the sale of tangible personal property or a lease, and be entered into before June 3rd and delivered (for tangible personal property) on or before the specific date of the completion of the contract. If no completion date is included in the contract, the product must be delivered on or before November 30, 2004. Parties eligible for the refund should directly contact the Department of Taxation. (Virginia Retail Sales and Use Tax Rate Increase Guidelines, Virginia Department of Taxation, August 1, 2004)