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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
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Wednesday, July 14, 2010
An introduction to this week's Retail Advocate
| Member News & Events |
State Issues
Sales Tax Holiday:
August 6-8, 2010
All retailers can participate!!
During this three-day sales tax holiday any retailer may chose to participate: furniture stores, jewelry stores, auto parts, men’s and women’s apparel stores, etc. The sale could include the entire store’s inventory or a select category or categories, as long as the retailer pays the tax for the customer on non-exempt items. This is essentially giving the customer a 5% discount. However, under Virginia law, retailers may only advertise that they will pay the tax for the customer during the event and up to14 days before the event. Don‘t miss this opportunity to promote! Consumers love this Sales Tax Holiday!
School Supplies and Clothing
- Clothing and Footwear, men’s, women’s or children’s, $100 or less
Example, $120 pair of shoes, on sale 20% off, final cost $96. This would qualify as an exempt item.
- School Supplies at $20 or less
Example, $40 book bag on sale 50% off, final cost $20. This would qualify as an exempt item.
All retailers may participate offering tax free shopping days. The retailer must pay the tax for the customer on non-exempt items.
Examples:
- Hardware store advertises “shop tax free” on all paint by Benjamin Moore
- Jewelry store advertises “shop tax free” on all diamonds
- Sporting Goods store advertises “shop tax free” on all fishing equipment.
The retailer may advertise any item or all items tax free as long as they pay the tax for the consumer on non-exempt items.
During this three-day period, purchases of certain school supplies, clothing and footwear will be exempt from the Virginia sales tax. Each eligible school supply item must be priced at $20 or less, and each eligible article of clothing and footwear must be priced at $100 or less. Other retailers may also choose to absorb the tax on other items during the holiday period, but they are responsible for paying the tax on those items to the Department of Taxation. For details, visit our School Supplies and Clothing Holiday page.
Other Information:
- Guidelines
- Frequently Asked Questions
- Lists of Exempt School Supplies and Exempt Clothing and Footwear
- Tax Holiday Information Center
Legislation Impacting Retailers
That Went into Effect July 1st
ABC Privatization
In Governor McDonnell's attempt to make government simpler, more efficient and more effective he has appointed a Commission to develop recommendations to deliver state services at the lowest cost and best value to Virginia taxpayers, streamline state services, and make state government more transparent and accountable to its citizens. One area that will be looked at this summer will be privatizing the sale of distilled spirits.
The Virginia Retail Federation, the lobbying arm of the Retail Merchants Association and Retail Alliance of Hampton Roads, was asked to serve on the workgroup that will look at the many issues facing privatization of ABC. The workgroup has met twice and each member was given the opportunity to present their position on how their organizations view privatization. In addition, Eric Finkbeiner, Senior Advisor for Policy for Governor McDonnell, is meeting with all stakeholders individually to present a number of options of how privatization could take place. In the meeting with Virginia Retail Federation representatives the following options were offered for consideration:
- Full Privatization—open to anyone, the license would be available to anyone currently having a beer and wine license and anyone who would like to apply to sell ABC products. (This option would contain a mixture of high volume, moderate volume and low volume stores.)
High volume store, such as Wal Mart, Costco, grocery stores
Moderate volume, such as Total Wine
Low volume, such as a convenience store
- Limited License—auction off from 300-500 (could be higher) licenses to the highest bidders and limit the number of licenses that could be owned by one company. (This option would contain a mixture of high volume, moderate volume and low volume stores.)
- Agency Store—distilled products would be sold at many different retail outlets. The state would set the price and maintain the inventory. The state would share in a percentage of the business.
- Sell the entire ABC operation to the highest bidder (this is the less likely option). This trades one monopoly for another.
In general discussion, Eric Finkbeiner noted that the regulations controlling the method in which alcohol may be advertised will need changing. It was also noted that the timeline to have a framework for privatization is still set for August and the Governor may call for a special session in late September or early October to address a number of issues with privatization being one issue.
The VRF’s legislative policy for ABC Privatization is: In the area of privatizing ABC, VRF only supports privatization if it is a result of a formal study, is open to the public for input and is approved through the legislative process, and has proper regulatory controls.
If you have questions concerning ABC privatization, please call George Peyton at 804-662-5505.
Federal Issues
House considers taxing online purchases in certain states
A bill introduced in the U.S. House of Representatives would allow the 24 states that participate in the Streamlined Sales and Use Tax Agreement to charge a sales tax for online transactions involving retailers that do not have a physical presence in those states. The Main Street Fairness Act is backed by the International Council of Shopping Centers, landlords and brick-and-mortar retailers, among others. SCT Newswire
Brick-and-mortar merchants push for level playing field
Local retailers say they're at an ongoing disadvantage when it comes to sales tax, as online merchants that don't have to contribute to state coffers undercut their prices. The National Retail Federation and other trade groups are pushing for federal legislation to allow states to collect the tax from online merchants. "We believe when online retailers don't have to collect sales tax, they enjoy an unfair advantage," said NRF's Craig Shearman. "With state revenues falling short the past few years, there's a lot more reasons for states to collect." Milwaukee Journal Sentinel
Swipe fee fix included in House passed financial reform
NRF welcomed the passage of financial services reform yesterday as it contained a provision that should decrease the $20 billion in debit card swipe fees charged annually by the banking industry. "The House has sent a clear message that big banks shouldn't be allowed to drive up consumer prices by charging fees that are outrageously out of proportion to the actual cost of processing a transaction," NRF Senior Vice President and General Counsel Mallory Duncan said. Read more
Member News & EventsFree Promotion!WANTED: RMA member (only) news on RMA’s Facebook Fan page! We have over 1000 fans, and we want to bring them to YOUR business! You can post a limited time offer, include a link to your website, promote a special event, announce a new employee or location. Need ideas? Have questions? Contact patricia@retailmerchants.com. Facebook fan page: http://www.facebook.com/RetailMerchants?ref=ts EXPO Goes Hi-Tech—Partners with Mobile Marketing Provider Opt4Text™Registrants will be able to utilize Opt4Text 2Screen™ for interacting with expo speakers in real-time. There has never been a better way to get your questions answered. We will also be a Bluetooth enabled show, allowing you to receive show announcements via wireless transmissions to your cell phone (be sure to make your Bluetooth enabled phone discoverable). There will also be other surprises at the show. www.opt4text.com Win a Free Website!Addison Clark Online is searching for the Ugliest Website in Richmond! If your website is not currently meeting your needs or making you money, it may be ugly. Over the next month, ACO will be accepting submissions from local businesses that could benefit from a website makeover. Click here to submit your business today! In Denial? If Your Website:
info@addisonclarkonline.com Team Virginia C.O.P.S. Walk T-shirts“We have approximately 15 individuals walking in this year's C.O.P.S. Walk 2010 for Team Virginia. This Walk benefits Concerns of Police Survivors, Inc., a 501 (c)(3) non-profit organization that rebuilds the shattered lives of the surviving family and affected co-workers of law enforcement officers killed in the line of duty. My parents generously donated 117 acres of land in Lunenburg County to C.O.P.S. so that they may build their own retreat and law enforcement training facility. With that, we wanted to show C.O.P.S. just what Virginia is all about and were lucky enough to find 14 others to take part in this annual walk. Each walker is required to raise $2500 by the end of September. One of the ways we want to raise money is by selling T-shirts. They were designed by a couple of the girls on Team Virginia. We are doing pre-orders right now for $15 each shirt so if you're interested, please reply to me with how many you may want and the sizes.” C. Romaine Cheney, Office Assistant IV, Henrico Circuit Court Judges' Chambers P.O. Box 90775 Henrico County Business Watch Newsletter3rd quarter newsletter with interesting information, including a list of current crime trends and tips for small business. Click here. Powhatan Chamber of Commerce LuncheonThursday, July 15, 11:30 a.m.–1 p.m. Speaker for July will educate us about the state of health insurance. Lunch is $8.00, paid to County Seat Restaurant. Please RSVP at the Chamber office 598-2636 or info@powhatanchamber.org Free Movies on the AvenuesJuly 17/August 13 Saturday & Friday Roll back the clocks as you stroll the neighborhood with family & friends. Shop, eat, explore and join us for a free outdoor movie night on the big screen. Pre-movie activities include shopping from local merchants, and darn good food & beverages. Lots of fun begins at 6:00. Feature presentations at 8:45: The Blind Side July 17 and Hotel for Dogs August 13.Bring your blankets & lawn chairs and settle in for an old-fashioned family movie on the big screen: Westhampton School playing fields, 5800 Patterson Ave at Maple Ave. Click here to see the flier. GRTC Fare IncreasesYou can download these flyers & post for your employees and/or customers.
For more information, visit www ridegrtc.com. |
