Effective on July 1, 2004, tangible personal property sold or leased to a public service corporation (1) engaged in business as a common carrier of property or passengers by motor, (2) subject to a state franchise or license tax upon gross receipts (utilities), or (3) engaged in telecommunications, will no longer be exempt from tax. Exemptions will still apply to contracts for the lease or sale of tangible personal property that was entered into prior to March 2, 2004 if the property is placed in service before August 2, 2004. Public utility companies are granted authorization to pass a sales and use tax surcharge to their customers in order to recover the taxes paid as a result of the repeal of the above exemptions. (Virginia H.B. 5018, Special Session, signed by Governor Warner on June 6, 2004.)