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The Retail Advocate

The Retail EmployerMay 2008

State Issues

Sales Tax Holiday

Sales Tax Holiday!! In May??

 The 2007 General Assembly passed legislation that created the Hurricane Preparedness Sales Tax Holiday.  The Sale will begin May 25th and end May 31st each year beginning in 2008.  Those retailers participating may begin advertising 14 days prior to the event. The Retail Merchants Association and the Retail Alliance of Hampton Roads joined forces to lobby in favor of this legislation which includes the provision to allow ALL RETAILERS to participate.

For a detailed list of exempt items, click here.  For items not on the exempt list, retailers may include them in the Sales Tax Holiday by absorbing (paying) the Sales Tax for the customer.

The RMA encourages all retail members to participate in this sale opportunity by joining retailers selling exempt Hurricane Preparedness items.

For complete Department of Taxation sales tax guidelines click here or go to www.retailmerchants.com and click on the Sales Tax Holiday logo.  Please note that the sales tax holiday logo is the logo to be used with all sales tax holidays.

If you have any questions regarding the Sales Tax Holiday, please call George Peyton, 662-5505.

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Transportation funding

Governor’s transportation plan

On Monday, May 12, 2008, Governor Timothy M. Kaine released details of his transportation plan and called for a special session of the General Assembly to address transportation on June 23. The Governor’s plan fills the growing road and bridge maintenance deficit to promote safety, provides relief for regional transportation needs, and invests in innovative approaches to Virginia’s transportation challenges. The plan raises over $1 billion annually by fiscal year 2012 and contains no gas tax increase.

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House Republican’s reaction to Governor Kaine’s Transportation Plan

Citing the current economic downturn and previous rejections of similar statewide and regional tax hikes by the General Assembly and Virginia voters, Virginia House of Delegates Majority Leader H. Morgan Griffith (R-Salem) and Majority Whip M. Kirkland “Kirk” Cox (R-Colonial Heights) expressed their disappointment over Governor Timothy M. Kaine’s newly unveiled proposal to increases taxes on Virginians by $1.1 billion.  The Governor’s plan includes increases to the taxes Virginians pay when buying and registering a car, selling their homes, and purchasing goods in the commonwealth’s two most populous regions. Click here for full press release.

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Increase in the Grand Larceny Threshold

The Virginia Retail Federation, the lobby arm of the Retail Merchants Association and the Retail Alliance of Hampton Roads, has begun work on carry over legislation that would increase the Grand Larceny threshold from $200 to $500.  In preparation for upcoming meeting with the Virginia Crime Commission the VRF is gathering information on what is transpiring currently from the time a shoplifter is apprehended, charged, prosecuted and sentenced, if found guilty.  Please share your experiences when dealing with the prosecution of shoplifters with George Peyton at gpeyton@retailmerchants.com

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Shoplifting and Internal Theft

The SLPA (Security and Loss Prevention Association) a sub association of the Retail Merchants Association will be meeting with the Retail Alliance of Hampton Road’s Security taskforce in a joint meeting to discuss what is needed by the retail community to combat shoplifting and internal theft if and when the Grand Larceny threshold is increased. This meeting will be open to all Loss Prevention managers, store managers and store owners, if you would like to attend call George Peyton for meeting details.

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Plastic Bag Ban

Legislation that would ban plastic bags in Virginia was carried over by the 2008 General Assembly and will be studied this summer.  If you go on the internet and search “plastic bag ban” you will find hundreds of articles that dicuss banning plastic bags to taxing the customer for using plastic bags.  Below are two articles relating to the plastic bag ban.  Your input on this issue is important to the RMA as the plastic bag study gets underway; please email your ideas concerning the use of plastic/ paper bags and foam, containers to gpeyton@retailmerchants.com.

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Definition of Antique

Legislation defining antiques in three terms, classic(less than 50 years old), vintage (50 to 99 years old) and antique (over 100 years old) will be studied this summer. A task force made up of antique dealers, antique show promoters, members of the General Assembly and the Virginia Retail Federation will be working to craft substitute legislation that defines antiques.  The purpose of the legislation was to help prevent the sale of counterfeit antiques and knockoffs being sold as antiques.  Another possible solution suggested is to create a state certification program for antique dealers.  With the certification program only certified antique dealers would be able to advertise or use “antique dealer” in their company name.

If you would like to participate in the study to define “antiques” please email George Peyton at gpeyton@retailmerchants.com.

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Federal Issues*

Food Marketing Institute battles high interchange fees

Credit card interchange fees grew 35% in the first four months of this year, making it one of the fastest-growing expenses for some food retailers, says FMI Chairman Steve Smith. FMI and other retail industry groups continue to advocate for lower interchange fees. In March, Reps. John Conyers Jr., D-Mich., chairman of the House Judiciary Committee, and Chris Cannon, R-Utah, introduced the Credit Card Fair Fee Act of 2008. The bill would make card companies negotiate with retailers. The Politico (Washington) (4/29)

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Links

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