Chief Patron: Governor Warner
Revised Sales Tax Acceleration Language (language only)

Item 3-5.02 #1g

Language
Page 529, after line 20, insert:
“§ 3-5.00  MODIFICATIONS AND ADJUSTMENTS TO TAXES AND FEES
§ 3-5.02  ACCELERATED SALES AND USE TAX COLLECTIONS
1.  Notwithstanding the provisions of § 58.1-615, Code of Virginia, every dealer, as defined by § 58.1-612, Code of Virginia, with (a) annual taxable sales in excess of $17.5 million for the period July 1, 2000, to June 30, 2001, shall be required to make a payment equal to 90 percent of the sales and use tax liability for the month of May as the estimated amount of sales and use tax liability for the month of June; or (b) annual taxable sales equal to or less than $17.5 million for the period July 1, 2000, to June 30, 2001, shall be required to make a payment equal to 67 percent of the sales and use tax liability for the month of May as the estimated amount of sales and use tax liability for the month of June.  Such tax payments shall be made on or before the 30th day of June, 2002, if payment is made by electronic funds transfer, as defined in § 58.1-202.1, Code of Virginia, or on or before the 25th day of June, 2002, if payment is made by other than electronic funds transfer.  Payments under this paragraph shall be made in accordance with procedures established by the Tax Commissioner.  Every dealer shall be entitled to a credit for the payments under this paragraph on the return due July 20, 2002.
2.  In lieu of the penalties provided in
§ 58.1-635, Code of Virginia, except with respect to fraudulent returns, failure to make a timely payment or full payment on the sales and use tax liability as provided in paragraph 1 above shall subject the dealer to a penalty of 30 percent of the amount of tax that should have been properly paid to the Tax Commissioner.  Interest will accrue as provided in §58.1-15, Code of Virginia.  The payment required by paragraph 1 above shall become delinquent on the first day following the due date set forth in paragraph 1 if not paid."

Explanation
(This amendment changes the proposal to accelerated sales and use tax collections proposed in the introduced budget. In June, dealers with annual sales in excess of $17.5 million would remit an amount equal to 90 percent of sales and use tax collections in May. All other dealers would remit in June an amount equal to two-thirds of May collections. Companion amendments revise the general fund revenue forecast and delete similar language from the Department of Taxation, Item 281.)