If this newsletter is not displaying correctly please click here or paste the following link into
your internet browser: http://www.retailmerchants.com/newsletter-retail-advocate/2009-02-11.htm
The Retail Advocate

The Retail EmployerGeneral Assembly 2009 Weekly Update—Week #4

Virginia Retail Federation
The Virginia Retail Federation (VRF) is the advocacy arm of the Retail Alliance and the Retail Merchants Association representing retailers throughout the Commonwealth.

Staying on Top of the Hill: February 11, 2009

We have now reached the halfway point (crossover) in the 2009 session of the General Assembly.  After crossover the Senate may only consider House bills and likewise the House may only consider Senate bills.  There are a number of bills remaining that have impact on the retail industry, however, the Dealer Discount issue continues to have the most substantial financial impact on retailers.

Dealer Discount

The dealer discount is a percentage of sales tax collected that businesses keep in exchange for their collection services.

The VRF opposes the Governor’s proposal to repeal the Dealer Discount. On Sunday the House Appropriations Committee proposed an $800 cap on the Dealer Discount amount kept per retail location / per return / per month. It also proposed a bi monthly sales tax remittance for retailers that have $20 million dollars or more in annual sales.  The majority of  RMA members fall below the $800 monthly cap therefore most RMA members would not be affected by the proposed changes.

Rather than repealing the Dealer Discount, the Senate Finance Committee passed SB 987 that removes the Dealer Discount proposal and in its place created an accelerated sales tax payment on June 25th beginning June 2010.  This proposal would affect retailers with $50 million or more in annual sales.  This option is not favored by the many members of the House of Delegates or the Governor. 

Smoking Ban Passes

There were a number of bills passed by the Senate Committee on Education and Health to ban smoking. The bills would ban smoking in restaurants or in all public places. Senator Ken Stolle introduced SB 1382 that would ban smoking in restaurants, however if there was one bill that many restaurant owners would prefer it would be this bill. SB 1382, would provide many exemptions favorable to restaurants and private clubs; a list of exemptions are found in 35.1-24.1. There also are a number of bills introduced in the House that ban smoking and they may be heard only by the full General Laws Committee. If this happens there will more than likely be a smoking ban bill that passes committee and reaches the House floor for vote. This will be the first time a smoking ban bill makes it to the House floor for vote.

A Smoking Ban for Restaurants, HB1703, has passed the House on a vote of 61-37.  Click here for the Smoking Ban legislation as passed the House http://leg1.state.va.us/cgi-bin/legp504.exe?091+ful+HB1703EH1+pdf.

The Senate has passed a number of bills that ban smoking in restaurants and all public places.  It is believed that the House version, a compromise between the Speaker of the House and the Governor, will prevail and the Senate bills will be killed in House General Laws Committee.

The VRF has opposed legislation that bans smoking in restaurants as we feel the issue should be driven by the market place not government intervention.  Many restaurants are smoke free while others still allow smoking.

Felony Threshold Increase Fails

SB1136 introduced by Senator Peterson and SB1422 introduced by Senator Stolle would have increased the felony threshold from $200 to $500.  Both bills failed to report from the Senate Courts of Justice Committee.  SB1422 supported by the VRF would have increased the felony threshold to $500 however, it also created a new Class 1 aggravated misdemeanor.  This new misdemeanor would require that upon conviction the person would be sentenced to a term of confinement and in no case would the entire term imposed be suspended.

Senator Stolle worked with members of the Security and Loss Prevention Association and the Security Task Force from Hampton Roads to develop the aggravated misdemeanor provision.  This provision would help soften the blow to the retail industry when and if the felony threshold is increased.

Cigarette Tax Increase

 An attempt to pass 30 cents per pack tax increase on cigarettes has now failed in the House and Senate.

Bills that have passed

Bills that have failed or have been incorporated into other legislation

Back to top
Copyright ©2009 Retail Merchants Association. All Rights Reserved.