Retail Sales and Use Tax; requires dealer to register if sufficient business activity within State. (SB660)

Introduced By

Sen. Emmett Hanger (R-Mount Solon)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Dealer registration for sales and use taxes; sufficient contact.  Provides that a dealer is presumed to be soliciting or transacting business in Virginia by an independent contractor, agent, or other representative if the dealer enters into an agreement with a resident of Virginia under which the resident, for a commission or other consideration, refers potential customers to the dealer if the cumulative gross receipts from sales by the dealer to purchasers in Virginia who are referred to the dealer by all residents with this type of agreement with the dealer are in excess of $10,000 during the preceding four quarterly periods. Such dealer presumed to be soliciting or transacting business in Virginia would be required to register for retail sales and use tax purposes. Amends § 58.1-612, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/21/2010Presented and ordered printed 10104299D
01/21/2010Referred to Committee on Finance
02/08/2010Impact statement from TAX (SB660)
02/10/2010Reported from Finance (14-Y 1-N) (see vote tally)
02/11/2010Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/12/2010Passed by for the day
02/15/2010Read second time and engrossed
02/16/2010Read third time and passed Senate (28-Y 12-N) (see vote tally)
02/17/2010Placed on Calendar
02/17/2010Read first time
02/17/2010Referred to Committee on Finance
02/18/2010Assigned Finance sub: #1
02/18/2010Assigned Finance sub: #2
02/19/2010Impact statement from TAX (SB660)
02/24/2010Subcommittee recommends laying on the table
03/01/2010Tabled in Finance

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 2 clips in all, totaling 14 minutes.

Comments

Brian J. Geiger writes:

Ah, the "take away Amazon affiliate income for people in this state" bill, as Amazon will cut off any affiliate accounts in Virginia if this bill passes.

Crystal writes:

Their own 2010 Fiscal Impact Statement on this bill says this won't make the state any money, and will in fact lose the state money because all the VA affiliates will just have to move to another state.

source: http://leg1.state.va.us/cgi-bin/legp504.exe?101+oth+SB660F161+PDF

I can't believe this got past committee. don't they even read their own Impact Statement?

Chris writes:

10's of thousands of people will no longer receive commission from online stores and the state will still not collect sales tax. Not a very well thought out bill for a state that is supposed to be friendly to business.

Nate writes:

As noted above, all this bill will do is make large companies move their affiliates to other states that do not collect sales tax on online transactions. Not to mention that it will hamper small business online growth in Virginia.

Everett (Affiliate Website Owner) writes:

I'm glad to hear this thing has failed in VA. It just passed here in Colorado and all of my peers are receiving the dreaded email from Amazon. It is telling them their accounts have been suspended and is essentially ruining a lot of their businesses.

Luckily I updated my Amazon Associates address to reflect my new residence in Virginia last week. If VA would have passed the same ignorant Bill I would have had to cancel plans to bring my revenue to the state of Virginia. I'm disappointed that it passed the Senate, but am glad to see the Committee come to their senses in the end.

Would you charge State sales tax for every customer from every state just because a business ran a full page ad in Times Magazine, which just happens to be sold in Virginia? Affiliate marketers provide Performance Based Advertising. The only difference between buying an ad and paying an affiliate is accountability.

Again, I am SO glad this didn't pass. Now I can bring my business, and my money, to Hillsville, VA and help (in my own small way) revive the economy of rural Appalachia in SWVA.

Thank you Virginia for doing the right thing!