Virginia Retailers: Tax and Budget Proposal Updates

Virginia Retailers: Tax and Budget Proposal Updates

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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.

Restaurant Inspections

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.


Questions on this topic? Contact your Keiter representative or the Retail & Distribution Team | 804.747.0000 | Email

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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.


About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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