Accelerated Sales Tax Language (language only)

Item 3-5.04 #1s

Language
Page 421, after line 14, insert:
"§ 3-5.04  ACCELERATED SALES AND USE TAX COLLECTIONS
1.  Notwithstanding the provisions of § 58.1-615, Code of Virginia, any dealer, as defined by §58.1-612, Code of Virginia, or direct payment permit holder pursuant to §58.1-624, Code of Virginia, with taxable sales and purchases of $1.3 million or greater for the period July 1, 2001, to June 30, 2002, shall be required to make a payment equal to 90 percent of the sales and use tax liability for June 2002 as the estimated amount of sales and use tax liability for the month of June 2003.  Such tax payments shall be made on or before the 30th day of June 2003, if payment is made by electronic funds transfer, as defined in § 58.1-202.1, Code of Virginia.  If payment is made by other than electronic funds transfer, such payment shall be made on or before the 25th day of June 2003.  Payments under this paragraph shall be made in accordance with procedures established by the Tax Commissioner and shall be considered general fund revenue.  For purposes of this provision, taxable sales or purchases shall be computed without regard to the number of certificates of registration held by the dealer.  Every dealer or direct payment permit holder shall be entitled to a credit for the payment under this paragraph on the June 2003 return due July 20, 2003.  In addition, the distribution of the payment to revenue code 01088 by the Comptroller shall also occur after the return has been filed.  The provisions of this section shall not apply to persons who are required to file only a Form ST-7, Consumer User Tax Return.
2.  Notwithstanding the provisions of § 58.1-615, Code of Virginia, any dealer, as defined by §58.1-612, Code of Virginia, or direct payment permit holder pursuant to §58.1-624, Code of Virginia, with taxable sales and purchases of $1.3 million or greater for the period July 1, 2002, to June 30, 2003, shall be required to make a payment equal to 90 percent of the sales and use tax liability for June 2003 as the estimated amount of sales and use tax liability for the month of June 2004.  Such tax payments shall be made on or before the 30th day of June, 2004, if payment is made by electronic funds transfer, as defined in § 58.1-202.1, Code of Virginia.  If payment is made by other than electronic funds transfer, such payment shall be made on or before the 25th day of June, 2004.  Payments under this paragraph shall be made in accordance with procedures established by the Tax Commissioner and shall be considered general fund revenue.  For purposes of this provision, taxable sales or purchases shall be computed without regard to the number of certificates of registration held by the dealer.  Every dealer or direct payment permit holder shall be entitled to a credit for the payment under this paragraph on the June 2004 return due July 20, 2004.  In addition, the distribution of the payment to revenue code 01088 by the Comptroller shall also occur after the return has been filed.  The provisions of this section shall not apply to persons who are required to file only a Form ST-7, Consumer User Tax Return.
3.  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 paragraphs 1 and 2 above shall subject the dealer or a direct payment permit holder to a penalty of six 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 paragraphs 1 and 2 above shall become delinquent on the first day following the due date set forth in paragraphs 1 and 2 if not paid.
4.  Notwithstanding any provision of law, any cash balance resulting from such collections shall not be subject to reporting as reservations or designations of fund balance of the General Fund, or liabilities of the General Fund, as of June 30 for purposes of cash basis financial reporting as reflected in the Comptroller's annual financial report presented in accordance with §2.2-813 of the Code of Virginia.
5.  It is the intent of the General Assembly that the payment requirement contained herein be phased out beginning in Fiscal Year 2006.  The payment amount for June 2006 should be reduced to 85 percent of the sales and purchases for the previous June and the payment amount should continue to be reduced until fully eliminated not later than June 2012."

Explanation
(This amendment changes the proposed accelerated sales and use tax collections. A companion amendment has similar language in the Department of Taxation, Item 285.)