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The Retail Advocate

February 9, 2010

Staying on Top of the Hill, Week #3

Your VRF lobbyists devoted a major portion of week 3 to lobbying the Senate Finance Committee to gain their support of SB 660.  The VRF lobbyists found that Senate Finance Committee members were receptive to the bill that will close the “loophole” that certain Virginia internet retailers use to keep from collecting the Sales and Use Tax from Virginia consumers.  One senior senator characterized the bill as a compliance and fairness issue.

The bill will be heard this Wednesday, February 10th, at 9 a.m. in Senate Room B. We would encourage RMA retail members to attend this meeting as there is strength in numbers.  You should plan to be in the General Assembly building by 8:30 a.m. in order to clear security and get a seat.

If you have not called or emailed members of the Senate Finance Committee to ask them to support SB 660, please do so before Wednesday.

Senate Finance: Colgan (Chairman), Wampler, Stosch, Houck, Howell, Saslaw,  Quayle, Norment, Hanger, Watkins, Miller, Y.B., Marsh, Lucas, Whipple, Reynolds.

The Budget

Conversations concerning the budget are being conducted behind closed doors. There has been little discussion about the fate of the Dealer Discount, the small portion the retailer retains for collecting and remitting the sales tax.  Since former Governor Kaine cut the entire budget for the Dealer Discount it is felt that getting anything back in the budget will be a major accomplishment.  The VRF will continue its efforts to retain the Dealer Discount and to defeat the two bills that would remove the dealer discount from the state code. The action taken by former Governor Kaine only impacts the pending two year budget; however HB1050 and SB542 would remove the section of the Virginia Code that provides the Dealer Discount. 

The accelerated sales tax payment placed in the budget by former Governor Kaine represents a significant problem to retailers who will have to accelerate their sales tax payments each year in June. The accelerated payment provides a onetime movement of sales tax dollars from one year to another, thus generating revenue for the first budget year.  It is difficult to remove the dollars from the budget due to the inability of finding funds during a down economy as a replacement.

The VRF needs you to call or email members of the House Appropriations Committee and Senate Finance Committee to express your SUPPORT for maintaining the Dealer Discount and express your OPPOSITION to an accelerated sales tax payment. (Click here to find contact information)

Senate Finance: Colgan (Chairman), Wampler, Stosch, Houck, Howell, Saslaw,  Quayle, Norment, Hanger, Watkins, Miller, Y.B., Marsh, Lucas, Whipple, Reynolds.

The Appropriations Committee members are  Putney (Chairman), Morgan, Tata,  Ingram, May, Sherwood, Cox, Landes, Jones, O'Bannon, Lingamfelter, Abbitt, Phillips, Scott, J.M., Joannou, Brink, Ware, O., Howell, A.T., BaCote, Dance, Shannon, Bowling.  

Weights and Measures Program Funding

The VRF supports funding the Weights & Measures Program through the General Fund.

The Weights and Measures program, which provides verification of accuracy on weighing and measuring devices, has been funded through the Commonwealth’s General Fund for generations.  Former Governor Kaine placed a $17.50 fee on every scale and measuring device in the Commonwealth.  For example, every scale in a grocery store would be levied a $17.50 fee and a grocery store with 20 checkout lines with a scale at each, would have a $350 annual fee just for those checkout line scales.  This fee doesn’t guarantee the device would be inspected by the weights and measures program, it is simply a fee to fund the program.  Another example is the fee on gas pumps. Gasoline retailers, some with as many as 20 pumps or more, would pay a proposed fee of $70 per pump or $1,400 for the 20 pump gasoline retailer.

The $17.50 fee would double the funding for the Weights & Measures program.  When most state programs are being cut back due to budget issues it would be unreasonable to expect the retailers to fund this program.  The VRF will lobby to keep the Weights and Measures program financially supported through the General Fund rather than imposing fees on individual retailers.

Failed Bills

During the 3rd week of the 2010 session the list of “failed legislation” grew dramatically, click here to view the list of failed bills the VRF was monitoring. The following are a few of these that may be of particular interest and were not supported by the VRF.

Plastic Bag Ban

Delegate Joe Morrissey introduced HB 521 that would have banned plastic bags. That bill failed in Finance subcommittee. The VRF met with Del. Morrissey to provide him data on the success plastic bag recycling pilot programs had during their first six months and how these recycled bags were being used to produce decking and siding. 

Hotel Manager’s Reception License

HB 354 introduced by Del. Englin failed in subcommittee. The bill would have required hotel managers to apply for an annual ABC license to enable the managers to host receptions.

Gift Cards

Del. Joe Morrissey’s bill, HB 181, which would have required all gift cards issued in Virginia to have no expiration date or diminishing value, failed in subcommittee.

Removal of Defacement from Property

Del. Villanueva’s bill HB 790, which would charge property owners for the removal of graffiti was defeated in subcommittee.  The VRF has opposed this type legislation because it victimizes the property owner twice, once when the vandal defaces the property and again when the locality charges the property owner for the removal.

To view all legislation followed by the VRF that has failed, click here, and for legislation that has not been acted on or has passed the committee of origin, click here. For bills carried over to 2011, click here. Back to top
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