The Retail EmployerSeptember 2008
State Issues
Energy Star Sales Tax Holiday, October 10-11-12-13
Energy Star qualified products with a sales price of $2,500 or less per product purchased for noncommercial home or personal use are exempt from Virginia Sales Tax October 10 - 13, 2008.
The 2008 General Assembly passed legislation that added water-efficient products to the products exempt from taxes during the Energy Star
Sales Tax Holiday.
During this period, purchases of certain Energy Star and WaterSense qualified products purchased for non-commercial use and costing $2,500 or less will be exempt from sales tax. The exempt Energy Star items include dishwashers, clothes washers, refrigerators, air conditioners, ceiling fans, compact fluorescent light bulbs, and programmable thermostats that carry the Energy Star designation. The exempt WaterSense items include bathroom sink faucets, faucet accessories, and toilets. Retailers may also choose to absorb the tax on other items during the holiday period, but they are responsible for paying the tax on those items to the Department of Taxation.
The RMA successfully had the language from the original Sales Tax Holiday included in this legislation, so during the October event any retailer—jewelry, furniture, clothing, etc. may also participate in the Energy Star Tax Holiday if they absorb (pay) the tax for the consumer.
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Legislation introduced for 2009
This legislation introduced by Delegate Algie Howell, Jr., requires the owner or operator of a commercial establishment that provides a service that requires the establishment's employees regularly to enter the interior area of the residence of its customers to conduct a criminal background check of employees whose regular duties can reasonably be expected to require entering the interior area of the residence of its customers. Effective September 1, 2009, employers are prohibited from employing an employee unless the employer has found, upon completion of a criminal records check, that the employee has not been convicted of any felony. Employers are required to keep copies of the fingerprints and records check for such employees. Employers shall provide identification badges to employees and require the employees to wear the badge when they are expected to enter customers' homes. Violations constitute a Class 3 misdemeanor.
Please provide your feedback, via return email, on how this proposed legislation would impact your business. (Send email to gpeyton@retailmerchants.com .
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Legislation carried over from 2008 session
HB 11 - Albo - Constitutional amendment; exempts certain homeowners from taxation (voter referendum). notes: The VRF opposes any legislation that MAY lead to higher Realestate rates for commerial property owners. The RMA has surveyed surrounding counties and all oppose this constitutional amendment. The Cities of Richmond and Norfolk will support |
HB 59 - Frederick - Income tax, state; tax credit for health insurance premiums paid by small business employers. notes: The VRF supports legislation that reduces the cost of employers providing health insurance to employees. This legislation would provide a tax credit for taxable years beginning on or after January 1, 2009, to employers who pay at least one-half of the annual health insurance premium per employee. The amount of the credit is the lesser of $500 or the amount paid per employee. The total amount of credits available to each employer annually is limited to $25,000. The credits are available to employers with 50 or fewer full-time employees. |
HB 215 - Alexander - Real estate tax; classification of residential property. notes: The VRF opposes this legislation. If passed this legislation COULD cause commerial property rates to increase to make up for the loss revenue caused when residential rates are lowered. The legislation permits localities to tax residential property at a lower tax rate than that imposed on the general class of real property by creating a separate classification for taxation purposes. If a locality imposes a lower tax rate on residential property, then thereafter the locality shall not increase the rate of taxation on the general class of real property. |
HB 329 - McClellan - Gift certificates; certain information required for those charged a fee. notes: This legislation requires each gift certificate that is charged a fee for maintenance, service, or inactivity to include a telephone number or Internet address where the holder of the certificate may obtain information regarding such fees. The measure also requires that any gift certificate that has a limit on the time for redemption, other than an expiration date, to include a telephone number or Internet address where the holder of the certificate may obtain information regarding such limit. |
HB 628 - May - Antique, vintage, and collectible items; designating items, penalty. notes: At Delegate Joe May's request, the VRF hosted a meeting of Antique Dealers, from around the Commonwealth to discuss the development of a definition of antiques. The group came to no unanimous conclusion, however, a second meeting is planned for October. The bill in its original form would have requires any person, firm, partnership, association, or corporation engaged in the business of buying or selling antique, vintage, or collectible items to designate such items as being antique, vintage, or collectible when selling or displaying such items for sale. The bill defines %93antique%94 as any item manufactured or produced more than 100 years ago, %93vintage%94 as any item manufactured or produced between 50 and 99 years ago, and %93collectible%94 as any item manufactured or produced less than 50 years ago. The bill provides that a violation of the requirement to properly designate items being sold is a misdemeanor punishable by a fine not to exceed $500. |
HB 794 - Englin - Retail Sales and Use Tax; Energy Star sales tax holiday. notes: This legislation has not been acted on and will not be in effect when the October 08 Energy Star Sales Tax Holiday begins on October 10th. This legislation removes the "purchased for noncommercial home or personal use" limitation from the Energy Star sales tax holiday beginning in 2008. This would open up sales for energy star products for commercial use. |
HB 1105 - Bouchard - Outdoor advertising; local governments ability to limit or remove signs.. notes: Gives local governments increased ability to limit or remove nonconforming billboard signs. |
HB 1192 - Moran - Child Toy Safety Act of 2008; penalty for failure to remove recalled goods, report. notes: The VRF will request the bill to be amended to provide that all product recall notices be sent by parcel post to store management. This will ensure the timely removal of unsafe toys. The bill provides that any person who continues to offer any child's product for retail sale when more than 14 days have elapsed following receipt of an announcement by the United States Consumer Products Safety Commission that the product has been recalled shall be assessed a civil penalty of $1,000 for each day the product continues to be offered for sale. The bill also requires several state agencies to enforce federal recalls of unsafe toys and develop standards and regulations to keep unsafe toys out of child daycare facilities. |
HB 1511 - May - Changeable electronic variable message signs; imposes a moratorium on erection of advertisements. notes: This bill imposes a moratorium on the erection or conversion of advertisements and advertising structures into changeable electronic variable message signs. The VRF will continue to oppose this legislation. Electronic signs have advanced in technology and are used by many retailers. |
HB 1534 - Barlow - Plastic carryout bags; retail merchant not to provide unless durable. notes: The VRF has worked thoughout the summer with Delegate Barlow, Senator Quayle and a coalition made up of local government officials, representatives from the agricultural community, trash haulers and retailers to develop a model plan of action to educate the consumer and retailers on alternatives to the use of plastic bags and for the increased awareness of the importance of recycling. The VRF proposal is attached(click here) |
HJ 4 - Albo - Constitutional amendment; exempts certain homeowners from taxation (second reference). notes: Oppose, The VRF opposes any legislation that MAY lead to higher Realestate rates for commerial property owners. The RMA has surveyed surrounding counties and all oppose this constitutional amendment. The Cities of Richmond and Norfolk will support |
SB 147 - Stosch - Retail Sales and Use Tax; absorption and payment by seller. notes: VRF opposes this legislation. The legislation would allow a retailer to create a sales tax holiday any time during the year. To eliminate this prohibition would dillute the importance of the existing Sales Tax Holidays. The VRF supports the lifting of the prohibition during designated Sales Tax Holiday inorder to allow all retailer to participate in the tax free sales events. |
SB 294 - Puller - ABC Board; grounds for when may revoke or suspend license. notes: Eliminates provision that the ABC Board may revoke or suspend a license, other than a brewery license, if it has reasonable cause to believe that the licensee has employed a person who has been convicted of a felony or a crime of moral turpitude. The bill limits ABC Board's authority to revoke a license to licensees who employ a person who has violated the laws of the Commonwealth, of any other state, or of the United States, applicable to the manufacture, transportation, possession, use or sale of alcoholic beverages. |
SB 323 - Wagner - Alcoholic mixed beverages; restaurant licensee food sale requirement. notes: Changes the gross receipt sale requirement for mixed beverage restaurant licensees. The bill requires licensees' gross receipts from the sale of food cooked or prepared and consumed on the premises and nonalcoholic beverages served on the premises, after issuance of such license, to amount to at least an average of $4,000 per month annually. |
SB 351 - Reynolds - Grand larceny; threshold amount. notes: On October 14 the Crime Commission will present its finding on the effects an increase in the Felony threshold would have on the retail industry, the judicial system and corrections facilities. The bill increases the felony threshold from $200 to $500. |
SB 364 - Watkins - Bad checks; attorneys for State to establish programs that allow persons to avoid prosecution. notes: This legislation authorizes attorneys for the Commonwealth to establish programs that allow persons who write bad checks to avoid prosecution if they pay full restitution to the victim, attend an educational program, and pay all fines and costs. This program has been well received by retailers. |
SB 366 - Watkins - Alcoholic beverage control; creates new nonresident winery distributor license. notes: Creates a new nonresident winery distributor license that authorizes the licensee to sell and deliver the wine produced by the licensee, in accordance with ABC Board regulations, |
SB 711 - Quayle - Plastic carryout bags; retail merchant shall provide durable plastic bag, with handles, etc. notes: The VRF has worked thoughout the summer with Delegate Barlow, Senator Quayle and a coalition made up of local government officials, representatives from the agricultural community, trash haulers and retailers to develop a model plan of action to educate the consumer and retailers on alternatives to the use of plastic bags and for the increased awareness of the importance of recycling. The VRF proposal is attached(click here) |
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Federal Issues*
* © 2008. NRF Enterprises, Inc. used with permission.
Pennsylvania smoking ban
A new law banning smoking in the workplace goes into effect in Pennsylvania this week. The Clean Indoor Air Act requires restaurants to prohibit smoking, but small bars and taverns where food sales don't exceed 20% of total revenue can request an exemption. Pittsburgh Post-Gazette (9/7)
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California could be first state to pass menu-labeling legislation
The California Restaurant Association is no longer opposing new legislation that would require some chain restaurants to post calorie information on their menus and menu boards. The amended legislation would apply to chains with 20 or more locations. The Sacramento Bee (Calif.) (free registration) (8/28)
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Retail data theft suspects charged
Eleven people have been charged in the retailer data breach that caused more than 41 million credit and debit card numbers to be stolen and sold, the Justice Department announced Tuesday. The hackers targeted TJX, Boston Market, BJ's Wholesale Club, Sports Authority, OfficeMax, Barnes & Noble, Forever 21 and DSW in a "wardriving" scheme. Detroit Free Press/Associated Press (8/5) , Women's Wear Daily (subscription required) (8/6)
Hearing on organized retail crime
U.S. Rep. Bobby Scott, D-Va., has called for a hearing before the House Judiciary Committee's Subcommittee on Crime, Terrorism and Homeland Security to discuss the Organized Retail Crime Act of 2008, H.R. 6491, and the E-Fencing Enforcement Act of 2008, H.R. 6713. Supermarket News (9/17)
Baltimore mulls ways to boost use of reusable bags
A Baltimore city councilman has introduced a bill that would ban plastic bags at stores. A separate bill introduced would impose a 25-cent fee for customers on either paper or plastic bags. The Sun (Baltimore) (free registration) (9/16)
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Contact:
George Peyton
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Fax: (804) 662-5507
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