Virginia Retailers: Tax and Budget Proposal Updates
Posted on 02.09.17
Virginia Sales and Use Tax Nexus
The House and Senate passed legislation for Sales and Use Tax Nexus for Out-of-State Businesses (HB 2058). The Bill provides that storage of inventory in the Commonwealth is sufficient nexus to require out-of-state businesses to collect sales and use tax on sales to customers in the Commonwealth of Virginia. The legislations will now crossover and be heard by the other body.
This is a step in the right direction for retail shops trying to fairly compete with online retailers.
Virginia Governor's Proposed Budget
The House and Senate released their amendments to the Governor's proposed budget.
The proposed increase for restaurant inspections is from $40 to $285 while the proposed fee increase for non-restaurant food establishments is a sliding scale based on square footage, from $40 to $575.
- The House removed both the proposed increase in fees for inspections at both restaurants and VDACS non-restaurant food establishments.
- The Senate did not remove either of these proposed increases.
Accelerated Sales Tax & Sales Tax Nexus
Neither the House nor the Senate made any changes to the Governor’s proposed Accelerated Sales Tax threshold or Sales Tax, which were introduced to overcome the budget shortfall.