Amazon Loophole
The VRF, in its efforts to level the playing field between brick and mortar retailers and internet retailers, and to bring forward opportunities for additional revenues to the Commonwealth, asked Senator Emmett Hanger if he would patron legislation that would seek to close the “Amazon Loophole.” This loophole is based on an opinion given in 2007 by the Department of Taxation that exempts Amazon and its affiliates from taxing internet sales for merchandise purchased by Virginians from Amazon and its affiliates located in Virginia. Currently when a consumer in Virginia makes a purchase from internet retailers and does not pay the Virginia sales tax on their purchase they are liable by state law to remit to the Commonwealth the tax on that purchase and all untaxed purchases they make on the internet. The remittance is done by the consumer on their state income tax return. This legislation moves the burden from the consumer to the retailer, where it currently exists for brick and mortar retailers. The VRF feels that leveling the playing field between brick and mortar stores and internet retailers is long overdue. This legislation addresses only those affiliates operating in Virginia with annual sales of over $10,000.
Senator Charles Cogan is supporting the legislation by putting in a budget amendment with language to address this issue. This is a bi-partisan effort that will need your support to make it through the Senate and the House.
