State Issues

Sales Tax Holiday 2009, are you ready?

Sales Tax Holiday—August 7–8–9

• Tax exempt items for this three day sale event are clothing and footwear costing $100 or less per item and school supplies costing $20 or less per item.
• The sale items may be extended beyond the exempt items if the retailer pays the tax for the customer.  This is essentially giving the customer a 5% discount.  However due to Virginia law, retailers may only advertise that they will pay the tax for the customer during the event and 14 days before the event.

RMA members, who experienced the best sales results during the 2008 event, combined the 5% tax savings with other promotional offers.  The combined percentage off spurred sales and the key to success was advertising to the customer that the store was participating in the "TAX FREE DAYS".  The motivation for the consumer was not having to pay tax.

The Department of Taxation has posted guidelines on their web page, http://www.tax.virginia.gov/site.cfm?alias=STHoliday, answering many questions; however if you have questions please call George Peyton at (804) 662-5505 or email gpeyton@retailmerchants.com.

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Federal Issues

Minimum Wage increases to $7.25 on July 24th

Click here for more information, http://www.dol.gov/esa/whd/flsa/

Card Check

Senators Warner and Webb need to hear your opposition.  The VRF, the lobby arm of the Retail Merchants Association and the Retail Alliance of Hampton Roads have joined a coalition of business organizations to oppose “Card Check” (Employee Freedom of Choice Act).  The coalition now has grown to 72 member organizations, click here for a list of organizations  that have signed on to oppose this unfair legislation.

Union organizations are continuing their push to move forward “Card Check” click here and here for two mailing that they are sending to garner support for this measure.

Myles Louria, Director of Government Affairs, Hunton & Williams LLP, stated,

The attached mailings are a powerful reminder that organized labor is still working very hard to ensure that the Employee Free Choice Act (EFCA) becomes law.  The Service Employees International Union (SEIU), who produced these mailings, are  just one of the organized labor groups that are mounting an aggressive mail, grassroots and media campaign here in the Commonwealth in an effort to pressure Senator Webb and Senator Warner to support EFCA. 

Discussions regarding a potential compromise on the bill continue to swirl in Washington, particularly with the recent seating of Senator Al Franken (D-Minn), a strong EFCA supporter.  Senator Franken's entrance into the Senate, coupled with Senator Arlan Specter's decision to join the Democratic Party give Senate Democrats 60 votes in the chamber and a potential filibuster proof majority.  There are several members of the Senate Democratic caucus that continue to voice concerns about EFCA, but members of the chamber's leadership, including Senator Tom Harkin (D-Iowa) and Senator Specter, are pushing hard for a "compromise" on the bill. 

It appears that organized labor is still insisting that any compromise include a provision on binding interest arbitration, which the union's are attempting to suggest is a commonplace method to equitably resolve labor disputes.  This is anything but an innocuous provision.  Forced binding arbitration constitutes an unprecedented shift in labor law that will allow a government appointed mediator to unilaterally impose a labor agreement without the consent of management or the employees. 

It is clear that binding arbitration is just as dangerous and is as equally unacceptable as organized labor’s attempts to eliminate the secret ballot through card check.  With your help, Virginians for Workplace Fairness will continue to make certain that Senator Warner and Senator Webb are well aware of the business community’s collective opposition to EFCA and EFCA related compromises.  Please find attached Virginians for Workplace Fairness’ updated one page information sheet on EFCA, as well as the updated coalition list which has grown to 72 member organizations. 

We are entering a critical phase in this campaign.  The Congressional recess during the month of August provides us with the perfect opportunity to communicate with Senators Warner and Webb.  Virginians for Workplace Fairness will be coordinating [from the top down and…] media activities throughout this period and we need your help to ensure that we have adequate coverage throughout the state.  If you are aware of any town hall meetings, public events, or other activities which the senators will be engaged with during the recess, please contact [George Peyton, gpeyton@retailmerchants.com] with that information.

Click here for Senator Warner’s contact information.

Health Care

There is enough support in the House of Representatives to pass a National Health Care Plan and business owners will not like what is passed.  If there is one glimmer of hope it will be the Senate version, which “may” be better, but this will not make it good for business.

The National Retail Federation calls the Health Plan Legislation a “Tax on jobs.”  They have urged House committees working on health care reform to reject any form of employer mandate. Click here for NRF’s press release.

Senators Warner and Webb need to hear your opposition to a national healthcare plan. For Senator Warner’s contact information click here. For Senator Webb's contact information, click here.

You may also want to contact Congressman Eric Cantor, Republican Whip, to thank him for speaking out against the proposed  national healthcare plan. Congressman Cantor understands the negative impact the healthcare legislation will have on business.

Wal-Mart's support of employer mandates hurts all retailers

Wal-Mart's letter to the Obama administration on health care reform makes it more difficult for NRF to protect large and small retailers from employer mandates, NRF Vice President Neil Trautwein says. "[NRF] will continue to fight on to help salvage reasonable reform that can work for everybody from the grotesque creations Congress is putting together," he said. Read more on the NRF blog.

7-Eleven fights credit card fees

Hoping to collect 1 million signatures, 7-Eleven is displaying in stores a petition calling for Congress to change credit card fees. The company says the fees are unfair because businesses have no negotiating power with credit card companies. Read more. Back to top

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The Retail Advocate is published the second week each month and whenever important issues affecting RMA members arise. Your comments and suggestions are welcome.

Contact:
George Peyton
(804) 662-5500
Fax: (804) 662-5507
e-mail

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