The Virginian-Pilot
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Amazon.com and other Internet retailers that do business in Virginia would be required to collect state sales tax under a bill introduced in the General Assembly by Sen. Emmett Hanger Jr., -Augusta County.
Amazon does not charge Virginia consumers the state's 5 percent sales tax when they make online purchases.
In an interview last year, an Amazon spokeswoman said it wasn't required to charge the tax. Virginia law, however, requires a company with a physical presence in the state to collect the tax. Amazon is based in Seattle but has a warehouse and data center in Virginia, the spokeswoman, Patty Smith, said at the time.
Hanger's bill, SB660, would add technical language to the sales tax statute that would require some Internet-based retailers to pay the tax.
"It levels the playing field for small businesses," said Margaret Ballard, vice president of advocacy for the Retail Alliance, a local merchants association that supports the measure.
Sen. Charles Colgan, D-Prince William County, has introduced a similar amendment to the state's proposed budget. Hanger and Colgan could not be reached for comment late Friday. Amazon did not return a message with its media relations office.
Ballard said the bill would yield a welcome bounty as the state struggles to fill a $4.2 billion budget gap. Legislative analysts have yet to estimate its fiscal impact to the state. North Carolina, which recently closed a similar loophole, expects to gain $36 million over the next two years, Ballard said.
The change could pose a sharp jolt to consumers, but Ballard said: "This is a collection issue. This is not a new tax. This tax is already required by the code."
Under the law, she said, "all of Virginia's consumers are required to pay sales and use tax on Internet purchases, whether the Internet entity charges them or not."
Philip Walzer, (757) 222-3864, phil.walzer@pilotonline.com
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Internet Sales Tax
It seems that all any politician wants to do is TAX, TAX, TAX. Every time you turn around, there is a new tax. Social Security isn't getting any raises for the next two years, so what the hell, they want to take that too? Our country fought a War over being taxed to much,perhaps it is time for another one. I realize it takes money to run the Govt, but if so much wasn't wasted and spent wisely,maybe our taxes would be lower. Just look how much a useless war is costing this country,not only in dollars but in the lives of our young. Comrade Obama stated that if elected,he would bring the troops home by 2010, 2011 at the latest. Now it is a different story. Tax money used to bail out mismanaged corporations,and give CEO's millions of dollars in "retirement" packages. We don't need more taxes,we need people who know how to manage and spend our money, not give a million dollars to Sen. Ben Nelson (Dem-NV) for his vote on the health care bill. We don't need to tax purchases made from the internet,since this limits the practice of free
enterprise. I say NO TAXES on purchases made on the Internet. Next thing you know, the Sunday "Blue Laws" will be back.
There have always been taxes
There have always been taxes on purchases of merchandise in stores. The only reason there are no sales tax on INTERNET purchases out of state is because inefficient state governments had not anticipated the revenue lost would not only cause state revenue problems but also hurt the local retailers. Technically when you purchase something out of state and pay no sales tax, you are supposed to report it and pay the tax to your state. Businesses are required to do this, but no one enforces it on the consumer end.
It's US that pays, not the company!
People have such hatred for corporations due to the lib/dem propaganda machine getting people think it's about money and class warfare. Taxed are paid by the average citizen when it comes to sales tax. That's common sense. Are you blind?
I can see well enough to know that....
there are innumerable verifiable sources which show CEO pay is up 298% compared to the averages worker's of 4.3% (1995-2005)
You can sing your Uncle Tom praises to CEOs and derivitive traders with inflated salaries and obscene bouses when they provide no real service to the nation.
I will save mine for garbage collectors, waitresses, grocery store clerks all those who provide real, necesary services to this nation and create the real tangible wealth of this nation of which they are denied a fair share by the greed of the vultures who run the banks and corporations.
Class warfare is alive and well and the workers are losing.
I can see well enough to know that....
there are innumerable verifiable sources which show CEO pay is up 298% compared to the averages worker's of 4.3% (1995-2005)
You can sing your Uncle Tom praises to CEOs and derivitive traders with inflated salaries and obscene bouses when they provide no real service to the nation.
I will save mine for garbage collectors, waitresses, grocery store clerks all those who provide real, necesary services to this nation and create the real tangible wealth of this nation of which they are denied a fair share by the greed of the vultures who run the banks and corporations.
Class warfare is alive and well and the workers are losing.
I can see well enough to know that....
there are innumerable verifiable sources which show CEO pay is up 298% compared to the averages worker's of 4.3% (1995-2005)
You can sing your Uncle Tom praises to CEOs and derivitive traders with inflated salaries and obscene bouses when they provide no real service to the nation.
I will save mine for garbage collectors, waitresses, grocery store clerks all those who provide real, necesary services to this nation and create the real tangible wealth of this nation of which they are denied a fair share by the greed of the vultures who run the banks and corporations.
Class warfare is alive and well and the workers are losing.
Taxes
This Senator should be taken out and shown how these taxes are unjustified! This includes the tax on Satellite TV and Radio. What are they taxing, the air? If the business does not have an outlet or agent for sales in the state that is too bad for the state!The state has scared many businesses out and they have found better homes. The out of state business should not charge tax since this would violate interstate commerce laws. It is ludicrous to assume that the consumer has the responsiblity to pay the tax to the state! I am a business owner and had to pay tax on items shipped into the state from a company that had no legal entity in Virginia. They were not on some list of items that were exempt from tax. We need to begin a tax revolt on these corrput politicians who are lining their pockets and not using the money for the good of the people anyway.
"North Carolina, which
"North Carolina, which recently closed a similar loophole, expects to gain $36 million over the next two years, Ballard said."
Article also fails to mention the fact that, you know, Amazon cut off their NC affiliates after they passed the law.
It's about time. The last
It's about time. The last time this subject came up all Mark Warner had to say about it is that we have to nurture the poor impoverished internet entrepeneurs. Since them we've seen untold numbers of local stores (which actually employed citizens in Virginia rather than Bangalore) close up shop because they've been undercut by these operations who didn't have to pay any taxes while local stores carried the whole tax burden.
eh, it's only a matter of
eh, it's only a matter of time before internet purchases are going to get taxed. Someone has to pay for our war machine waste and bank bailouts. 1.9 trillion in debt ability just added by congress. Why do they even bother setting a ceiling. Europe has VAT tax on top of other taxes, I've seen folks who believe that will come here.