Virginia – Legislation Would Require Sales Tax Collection for In-State Warehouses

SALT Report 1362 – A bill was introduced in the Virginia Senate that identifies and establishes “sufficient activity” within the Commonwealth that would require a dealer to register for retail sales and use tax purposes.

The bill creates a legal presumption that requires registration by a dealer for the collection of retail sales and use taxes if any commonly controlled person maintains a distribution center, warehouse, fulfillment center, office, or similar location within the Commonwealth and facilitates the delivery of property sold by the dealer to its customers.

The presumption can be rebutted by establishing that the activities conducted by the commonly controlled person are not significantly associated with the dealer’s ability to establish or maintain a sales market within the Commonwealth.

For Further Information:

Virginia Senate – S.B. 597