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2009 SESSION

092911212
SENATE BILL NO. 987
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Senate Committee on Finance
on February 3, 2009)
(Patron Prior to Substitute--Senator Colgan)
A BILL to amend and reenact § 58.1-622 of the Code of Virginia, relating to retail sales and use tax dealer discount; accelerated payment of sales and use tax as a condition of receiving the dealer discount.

Be it enacted by the General Assembly of Virginia:

1.  That § 58.1-622 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-622. Discount; accelerated payments of sales and use tax a condition of the discount for certain dealers.

A. For the purpose of compensating a dealer holding a certificate of registration under § 58.1-613 for accounting for and remitting the tax levied by this chapter, such dealer shall be allowed the following percentages of the first three percent of the tax levied by §§ 58.1-603 and 58.1-604 and accounted for in the form of a deduction in submitting his return and paying the amount due by him if the amount due was not delinquent at the time of payment. 


      Monthly Taxable Sales                             Percentage
      $ 0 to $62,500                                        4%
      $ 62,501 to $208,000                                  3%
      $ 208,001 and above                                   2%

The discount allowed by this section shall be computed according to the schedule provided, regardless of the number of certificates of registration held by a dealer.

B. 1. In addition to the amounts required under the provisions of §§ 58.1-615 and 58.1-616, any dealer as defined by § 58.1-612 or direct payment permit holder pursuant to § 58.1-624 with taxable sales and purchases of $50,000,000 or greater for the 12-month period beginning July 1 and ending June 30 of the immediately preceding calendar year, shall be required to make an additional payment in the month of June for the estimated sales and use tax due on June taxable transactions.

Such additional tax payments shall be made on or before the 30th day of June. 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 subsection on the return for June of the current year due July 20, provided that any amount of the additional payment made in June that is in excess of the actual liability for the month of June may be taken as a credit in the form of a reduction of the tax due on returns submitted in months subsequent to July until such excess is fully recovered. The provisions of this subsection shall not apply to persons who are required to file only a Form ST-7, Consumer User Tax Return.

2. In lieu of the penalties provided in § 58.1-635, except with respect to fraudulent returns, failure to make a timely payment or payment of at least 80 percent of the sales and use tax liability for June taxable transactions by June 30 shall subject the dealer or direct payment permit holder to a penalty of six percent of the amount of tax underpayment that should have been properly paid to the Tax Commissioner. Interest will accrue as provided in § 58.1-15. The payment required by this subsection shall become delinquent on the first day following the due date set forth in this subsection if not paid at the minimum amount required.

3. No discount under subsection A shall be paid for the return due for July taxable transactions to any dealer or direct payment permit holder who (i) is subject to the provisions of this subsection, and (ii) does not remit at least 80 percent of the sales and use tax due for June taxable transactions by June 30.  

4. The provisions of this subsection shall become effective on January 1, 2010.