February 3, 2010

Staying on Top of the Hill, Week #2

Closing the "Amazon Loophole" Update and CALL TO ACTION ALERT

Senate Bill 660 introduced by Senator Emmett Hanger will be heard next week.  Please read the following talking points and click on the names of the Senate Finance Committee to send an email and express your support of Sen. Hanger’s bill to close the loophole which allows VA internet retailers to bypass collecting VA State Sales Tax from VA consumers. Members of the Senate Finance Committee are Colgan (Chairman), Wampler, Stosch, Houck, Howell, Saslaw,  Quayle, Norment, Hanger, Watkins, Miller, Y.B., Marsh, Lucas, Whipple, Reynolds. Please use the following talking points:

• The bill is a Bipartisan Measure that Levels the Playing Field on the Collection of Sales and Use Taxes from Certain Internet Retailers
• SB 660 closes a loophole that is allowing some internet retailers to avoid collecting the required state sales and use tax at the point of sale, the same requirement that is placed on other internet and traditional store retailers today.
• Besides making the law consistent and fair for all merchants, the legislation would remove the onerous responsibility from the consumer to remember to pay the required sales tax on all internet purchases at the end of each year.
• Most internet retailers are in compliance with state law, and this legislation is directed at those few who are benefiting from a small loophole that costs Virginia millions in lost revenue.

Especially in this economy, this uncollected revenue will help the state’s budget and now is the time to address this small loophole.

Senator Charles Colgan (D-29th District) has introduced a budget amendment to temporarily close the tax loophole.

Dealer Discount Update and ACTION ALERT

It is becoming clear that the lack of money to fund core services of government, public safety and schools are making it difficult to determine what level of Dealer Discount will be put in the budget.  The VRF will continue to advocate for the maximum amount be placed in the budget.  It is totally unfair to place the expense and burden of collecting, remitting and complying with State Tax Code on retailers and take away the small amount retained by the retailers.  Click here for the op-ed in Sunday’s Richmond Times-Dispatch supporting maintaining the Dealer Discount.

The addition of an accelerated sales and use tax payment, beginning June 2011, placed in the budget by Governor Kaine is being opposed by the VRF.

The VRF needs you to call or email members of the House Appropriations Committee and Senate Finance Committee to express your SUPPORT for maintaining the Dealer Discount and express your OPPOSITION  to an accelerated sales tax payment. (Click here to find contact information)

Senate Finance: Colgan (Chairman), Wampler, Stosch, Houck, Howell, Saslaw,  Quayle, Norment, Hanger, Watkins, Miller, Y.B., Marsh, Lucas, Whipple, Reynolds.

The Appropriations Committee members are  Putney (Chairman), Morgan, Tata,  Ingram, May, Sherwood, Cox, Landes, Jones, O'Bannon, Lingamfelter, Abbitt, Phillips, Scott, J.M., Joannou, Brink, Ware, O., Howell, A.T., BaCote, Dance, Shannon, Bowling.  

The following bills being followed by the VRF were heard during the 2nd full week of the 2010 General Assembly:

Felony Threshold (final action taken)

VRF supports efforts to strengthen both prosecution of as well as the penalties attached to shoplifting and internal theft laws.

There were two bills introduced that would raise the felony threshold. Currently someone stealing under $200 is charged with petty larceny and someone who steals over $200 is charged with a felony. The Senate bill that would have raised the felony threshold from $200 to $210 died in Senate Courts Committee last week and the House bill that would raise the threshold to $750 died this past week in House Courts of Justice.  The VRF opposed each bill due to the negative effect the increase would have on the retail industry.

BPOL

(Business Professional Occupation License tax, based on gross receipts)

The VRF supports the outright repeal of the BPOL tax.

 Delegate Mark Cole’s bill that places caps on the present rates localities now charge for the BPOL Tax and prohibits any locality from imposing the BPOL Tax if the locality did not impose it as of January 1, 2010 has passed the full House and will be heard by the Senate after crossover.

Post Labor Day School Opening Legislation

The VRF opposes any changes to the Post Labor Day School statute.

Last week we reported that all Post Labor Day School Opening Legislation failed to report from Sub Committee, however, one bill did get resurrected in a meeting of House Education’s full committee. Under the protest of Delegate Manoli Loupassi the bill was held off until the 3rd week to enable all representatives of the Hospitality Industry to attend the meeting and express their opposition.

Last week, after lengthy opposition by representatives of the hospitality industry, the Senate Health, Education and Welfare Committee passed bills that would grant school boards the option of setting the school opening date prior to Labor Day.

It will be important to kill the House bill resurrected in the House Education Committee to keep any Post Labor Day bills from reaching the Senate.

Cigarette Tax

VRF opposes industry specific sales taxes.

This legislation would remove the referendum requirement and enable all counties to tax cigarettes an additional 5 cents per pack. The House bill failed in Subcommittee. The identical bill has passed the Senate and will most likely fail in the House Subcommittee after crossover.

Meals Tax

VRF opposes industry specific sales taxes.

Delegate Harvey Morgan’s bill that would give all counties the authority, without going to local referendum as currently required by state code, to adopt a meal tax. The legislation also removed the 4 cent cap on meal tax for those counties that currently have a meals tax failed in House Finance Sub Committee.

Senator Fred Quayle’s legislation which is identical to Delegate Morgan‘s legislation passed the full Senate  last week and will be heard by the House after crossover. The VRF will oppose this legislation when it reaches the House after crossover.

The VRF’s legislative policy opposes industry specific taxes.  The restaurant industry has been hurt during the economic downturn and to authorize counties to tax meals could give consumers a disincentive to eat out. 

Click here for a list of all bills being followed by the Virginia Retail Federation.

Click here for a list of bills that have failed.

RMA Links

• Government Relations
• RMA Legislative Policy

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
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