Virginia – Governor Proposes to Raise Accelerated Tax Payment Threshold

SALT Report 1296 – Virginia Governor Bob McDonnell has proposed to raise the taxable sales threshold for retail sales and use tax dealers who are required to make accelerated sales tax payments from $5.4 million to $26 million.  If passed nearly 96% of the sales tax dealers will no longer have to make accelerated payments to the state.

In his press release the Governor said, “I have always opposed the policy of playing budget games with sales tax receipts. The accelerated sales tax can feel to retailers like a double tax. It penalizes Virginia retailers and merchants and skews states revenues. It is bad policy and it needs to be eliminated as quickly as possible.”

The Governor’s proposal recommends that the threshold be raised in June 2012 and is built into the Caboose Budget Bill. Virginia’s 2012 general fund revenues have been reduced by $50 million to compensate for this provision.

For Further Information:

Virginia Governor Bob McDonnell – Press Release