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January 24, 2011

General Assembly 2011: Week Two Update

At the end of the first full week of the 2011 General Assembly, the Virginia Retail Federation lobbyists claimed a number of victories.

Plastic Bags Ban Defeated

Delegate Onzlee Ware of Roanoke introduced legislation that would have banned plastic bags that were less than 2.25 mil. thick.

The VRF lobbyists testified that through its involvement with the Keep Virginia Beautiful project, "A Bag's Life," there are over 800 retailers willing to accept plastic bags for recycling and that form of recycling and the use of reusable bags is preferred over a ban.  It was determined that a 2.25 mil. plastic bag costs 8 times that of the current plastic bag used by most grocers and convenience stores.  This additional cost would be passed on to the consumer in higher product prices.

For more information on Keep Virginia Beautiful, "A Bag's Life" project, click here.

Felony Threshold $200–$750 Defeated

Each year there is legislation introduced to increase the felony threshold (the amount that moves a theft from a misdemeanor to a felony). This year Delegate Surovell from Mount Vernon introduced legislation that would have increased the threshold from $200 to $750.  The House Courts Criminal Sub Committee voted 8 to 4 to defeat the bill and the bill now goes to full committee.

BPOL, two bills pass sub committee

The VRF's legislative policy for the Business Professional Occupational License tax states,

Virginia Retail Federation supports tax fairness and reform of the Business Professional and Occupational Licensing (BPOL) tax, and the Merchant's Capital Tax.  Taxation of gross receipts, before business expenses are paid, ignores the taxpayers' ability to pay and severely impacts business profitability.  While continuing to support tax reform and alleviation of this unfair burden, Virginia Retail Federation supports the reduction in the rate paid by retailers in general and may support rate reductions for an individual classification of retail.

This week VRF lobbyists testified in favor of two BPOL bills that will make this unfair tax somewhat better:

Delegate Mark Cole of Spotsylvania and Stafford introduced legislation that would provide localities the option to levy the BPOL tax on gross receipts or Virginia taxable income.

Delegate Sal Iaquinto introduced legislation that would exempt new businesses for their first two years from the BPOL Tax. This bill was originally introduced on behalf of the City of Virginia Beach and Chesapeake, however, the committee expanded the bill to include all jurisdictions in the Commonwealth.

ABC Privatization

There is now a House and Senate bill introduced that will privatize the sale of distilled spirits.  Senator John Watkins, Chesterfield and Senator Mark Obenshein introduced the Governor's plan for privatizing the sale of distilled spirits.

The VRF legislative policy states,

Virginia Retail Federation supports the principle of privatization if the transition process is open to the public for input, if it is accomplished with due consideration for merchants of all sizes, is approved through the legislative process and includes proper regulatory controls.

The Watkins/Obenshain bill provides a maximum of 1,000 licenses based on a formula of one per eight thousand in population.  As the VRF policy states, "with due consideration for merchants of all sizes."  It is difficult to imagine that with over 6,000 retailers currently selling beer and wine that the 1,000 license limit would benefit those that don't get the bid for a distilled license. Would it not be better to completely privatize the sale of distilled spirits and grant licenses as they are done presently for beer and wine? This gives the locality the ability to control the number of stores that sell alcohol products, as they currently are doing.

Delegate Robert Brink, Arlington, has introduced a privatization bill in the House that contains the same language as the Watkins/Obenshein bill which will force a vote on this issue in the House.

Governor's Transportation Plan and Small Business Agenda for Jobs Creation

The VRF is supporting both initiatives; click here for details on both.

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For a complete list of legislation being followed click here.

The VRF lobbyists are also working with legislators on:

• Prepaid card disclosure
• Restaurants posting their most recent health inspections
• Display requirement for non-phosphorous fertilizers in retail settings.

If you have questions concerning legislation impacting retailers please call George Peyton at 804-334-2932.

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