SB1107: Sales and use tax; prohibits any requirement that a dealer remit accelerated payments, exception.

SENATE BILL NO. 1107

Offered January 11, 2017
Prefiled January 9, 2017
A BILL to amend the Code of Virginia by adding a section numbered 58.1-616.1, relating to accelerated sales and use tax payments.
Patron-- Sturtevant

Referred to Committee on Finance

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 58.1-616.1 as follows:

§ 58.1-616.1. Accelerated sales and use tax payments.

A. Notwithstanding any other provision of law, no dealer shall be required to remit on an accelerated schedule or a schedule other than as provided for the time of transmitting the return pursuant to § 58.1-615 any amount of sales and use tax due except as set forth in subsection B.

B. If specifically required by the General Assembly in an appropriation act that becomes law, a dealer may be required to make a payment equal to 90 percent of the dealer's sales and use tax liability for the previous June on or before June 30 of a given year, but only pursuant to the following conditions:

1. If the accelerated payment applies to those dealers with taxable sales of $15 million or less, such monetary threshold shall not be lowered by more than 10 percent for the immediately following year;

2. The Department shall provide notice at least nine months in advance to those dealers that will be required to make an accelerated payment. If the Department does not provide such notice at least nine months in advance, the dealer shall not be assessed a penalty for late payment of the accelerated payment; and

3. Any dealer that was not required to pay an accelerated payment in the immediately preceding calendar year but is required to make such payment by June 30 of the current calendar year due to a lowered monetary threshold as described in subdivision 1 shall not be assessed a penalty for late payment of the accelerated payment.

C. No accelerated payments shall be required of any dealer after June 30, 2020.