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By Bob Lewis
RICHMOND
A bill that would require global online shopping giants such as Amazon to start collecting and paying Virginia sales taxes won easy Senate passage Tuesday.
The Senate voted 28-12 to advance to the House a bill intended to collect millions of dollars in lost revenue at a time when the state faces a $4 billion shortfall.
Sponsor Emmett Hanger argued that struggling owners of so-called "brick-and-mortar" stores are struggling and shouldn't have to compete with monied multinationals who ignore state taxes.
"They're being undercut by businesses that don't pay sales taxes, and (they) flaunt it," said Hanger, R-Augusta, noting that their Web sites entice customers to avoid the 5 percent tax.
While sales have been flat or worse for traditional retailers who have to pay the tax, Hanger said, multinational Internet sales behemoths have seen profits soar, Hanger said.
"And that is a significant amount of revenue that Virginia is losing and we should be getting part of that," Hanger said.
Opponents, however, said the bill would have no effect on the major global online retailers it attempts to target. Instead, it would devastate small, Virginia-based online businesses who form alliances with the major companies, said Sen. Mark Herring, D-Loudoun, whose district includes the Dulles headquarters of AOL.
Faced with the requirement to pay Virginia taxes, Herring said, large online retailers will merely stop doing business in Virginia, severing their partnerships with small businesses in the state that had relied on them.
"Has Virginia's economy not contracted enough? Do we need it to contract even more," Herring asked? "This is an issue that needs to be addressed in Congress, not here.
The bill benefited from support by many Republicans who are strident opponents of higher taxes. One was Sen. Steve Martin, R-Chesterfield.
"I do not see this as a tax increase," said Martin, among the Senate's most conservative members. "This is an equity issue. This is an issue of trying to ensure that those who comply with existing law can compete with those who do not."
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what happen ???
What happen to all those republican posters that come out bashing when Democrats try to support higher tax? Why aren't you bashing this stupid bill that republicans so dearly support? Is this your plan for fixing our budget problem? You have got to be kidding me. All those bashing and you the only thing you come up with is a stupid bill. It's call a tax. Does anyone really take this seriously? I'll blame Bill Clinton for the republicans incompetency.
Brilliant stupidity at best.
Brilliant stupidity at best.
This Law makes no (cents) Pun intended. Dumb and Dumber
Unless the federal government mandates a federal internet tax the States should not intervene. Now potential buyers will elect to shop out of state. Sorta Like most Military even though they live here and own houses never change their home of record. Saving them from taxes. I do not blame them but that is how it works. Now shoppers will avoid shopping online in Va. What happens to someone who sales an item on Ebay and does not have a business. When does it start becoming a business after x # of sales. Do we collect taxes from yard sales NO, cause it makes no sense.
Just as this make no (Cents) pun intended. I wish our legislators would wake up and use some common sense. Another under thought idea from our electives.
What happened
to the rest of the comments that were here earlier? Probably taken off for bashing Prince Books.
I won't buy from your store anymore either.
Boycott Prince Books.
so
that basically means a retailer from va has to have 6% lower prices than the competition or shipping otherwise i buy it from maryland, north carolina, or west virginia. sweet...