By Keiter CPAs
2017 General Assembly Session (Jan. 11 – Feb. 25)
During this final week of Session, things are winding down for the retail industry. In the past week , action was taken on the following issues:
Alcoholic Beverage Control (ABC)
- HB 1801 Alcoholic beverage control; delivery privileges of persons holding a wine and beer license.
Alcoholic beverage control (ABC); delivery privileges of persons holding a wine and beer license. Provides that notwithstanding any provision of law to the contrary, persons granted a wine and beer license may deliver such wine or beer in closed containers for off-premises consumption (i) to a person’s vehicle if located in a designated parking area of the retailer’s premises where such person has electronically ordered wine or beer in advance of the delivery or (ii) if the licensee holds a delivery permit issued by the ABC Board, to such other locations as may be permitted by Board regulation. The bill contains technical amendments
- Access Virginia’s NEW ABC Licensee Guide
- SB 1578 Short-term rental of property; registration of persons offering property for rental.
Short-term rental of property. Authorizes a locality to adopt an ordinance requiring the registration of persons offering property for short-term rental. The bill defines “short-term rental” as the provision of a room or space suitable for sleeping or lodging for less than 30 consecutive days. Persons and entities already licensed related to the rental or management of property by the Board of Health, the Real Estate Board, or a locality would not be required to register. The bill authorizes localities to impose fees and penalties on persons who violate the registry ordinance or who offer short-term rentals that have multiple violations of state or federal laws or ordinances, including those related to alcoholic beverage control. The bill amends the Alcoholic Beverage Control (ABC) Act to clarify that certain property rented on a short-term basis is considered a bed and breakfast establishment for purposes of ABC licensing and that the exception from ABC licensing for serving alcoholic beverages to guests in a residence does not apply if the guest is a short-term lessee of the residence.
Breach of Payroll Data
- HB 2113 Breach of payroll data; notification requirement.
Notification requirement; breach of payroll data. Requires employers and payroll service providers to notify the Office of the Attorney General without unreasonable delay after discovery of a breach of computerized employee payroll data that compromises the confidentiality of such data, regardless of whether the breach triggers other database breach notification requirements. The bill requires such notice to provide the affected employer’s name and federal employer identification number. Upon receipt of such notice, the Office of the Attorney General is required to notify the Department of Taxation of the breach. This bill is identical to SB 1033.
Cigarette Exemption Certificate
- SB 1390 Cigarettes; purchase for resale, penalties.
Purchase of cigarettes for resale; penalties. Creates a new requirement that purchasers of cigarettes for resale must apply for a special cigarette exemption certificate from the Department of Taxation in order to not be liable for the payment of sales tax at the time of purchase. The bill sets forth numerous requirements that a taxpayer must meet in order to qualify for a cigarette exemption certificate and establishes processes and procedures for the application, renewal, denial, and revocation of the certificates. The bill creates new recordkeeping requirements for the sale or distribution of more than 50 cartons of cigarettes, or with a value greater than $10,000. The bill also makes technical changes. The provisions of the bill requiring the use of a cigarette exemption certificate have a delayed effective date of January 1, 2018. This bill is identical to HB 1913.
Felony Threshold for Larceny
- SB 816 Grand larceny & certain property crimes; increases threshold amount of money taken, etc., to $1,000.
Grand larceny; threshold. Increases from $200 to $500 the threshold amount of money taken or value of goods or chattel taken at which the crime rises from petit larceny to grand larceny. This bill incorporates SB923.
- HB 1394 Franchisees; status thereof and its employees as employees of the franchisor.
Employees; franchisees excluded. Clarifies that neither a franchisee nor any employee of the franchisee shall be deemed to be an employee of the franchisee’s franchisor for any purpose to which the amended section of the Code of Virginia applies, notwithstanding any voluntary agreement between the U.S. Department of Labor and the franchisee or franchisor.
Sales Tax Holiday
- GOOD NEWS! The Governor signed HB 1529 into law, which extends the Sunset date for the Sales Tax Holiday to 2022 (effective 7/1/17).
Overall, this has been a very successful session for the retail industry.
Our Retail Industry team stays abreast of tax and regulation changes through a variety of resources, including Virginia Retail Federation (VRF). We will continue to keep you informed of upcoming tax and regulation changes that may impact your business. Questions on these topics? Contact your Keiter representative or 804.747.0000 | Email.
About the Author
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.