2018 Session

Budget Amendments - HB30 (Member Request)

View Budget Item
View Budget Item amendments

Chief Patron: Landes
AST Workgroup (language only)

Item 272 #1h

Item 272 #1h

Department of Taxation


Page 221, after line 13, insert:

"E. The Department of Taxation shall convene a workgroup to examine the provisions related to the timing of payments and return filings required of registered dealers pursuant to §§ 58.1-615 and 58.1-616, Code of Virginia, and § 3-5.06 of this act. The workgroup shall establish costs and a timeline for the Department of Taxation to implement an easy online application provided by the Department of Taxation for dealers to apply for the hardship exception and determine whether the current hardship definition is adequate or could be expanded to include additional hardship scenarios. The workgroup should make recommendations to the Department of Taxation about providing earlier notice to dealers of accelerated sales tax payments, the equity in assessing monthly 6 percent late payment penalty  fees, how the state would be impacted by options to phase-out the accelerated sales tax by fiscal year 2022, and the ability of the General Assembly to lower the accelerated sales tax threshold by more than 10% in one year when threshold is at $15,000,000 of annual taxable sales or less. The workgroup shall consider alternatives and limitations to the current accelerated sales tax requirement and may examine other sales tax-related issues as it deems appropriate. The workgroup shall include the staffs of the House Appropriations and Senate Finance Committees, the Secretary of Finance or his designee, the Office of the Governor and representatives from affected businesses and industries. Additional staff support shall be  provided by the Department of Taxation and the Division of Legislative Services upon request. The workgroup shall begin meetings in the month of May and meet no less than three times and complete its meetings by November 30, 2018, and shall submit to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees and all members of the House Appropriations and Senate Finance Committees a report of its findings and recommendations no later than the first day of the 2018 Regular Session of the General Assembly."


(This amendment extends a workgroup evaluating options for phasing-out the accelerating sales tax (AST) collections as well as additional administrative issues related to AST.)