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SB 1767 Remote sales & use tax collection; sufficient activity by remote sellers & marketplace facilitators.

Introduced by: Frank W. Wagner - Resigned 5/8 | all patrons    ...    notes | add to my profiles


Remote sales and use tax collection and sufficient activity by remote sellers and marketplace facilitators as to require registration for sales and use tax collection. Directs the Department of Taxation (the Department) to require a remote seller to collect sales and use tax if the seller has more than $250,000 in annual gross revenue from sales in Virginia and requires a marketplace facilitator, which enables marketplace sellers to sell in Virginia through its marketplace, to collect sales and use tax on any sales facilitated in the Commonwealth. The bill provides that the obligation of remote sellers and marketplace facilitators to collect sales and use tax shall not apply to transactions occurring before July 1, 2019. The bill was incorporated into SB 1083.

The bill provides that in administering remote sales and use tax collection, the Department shall provide information to remote sellers to allow them to identify state and local tax rates and exemptions. For auditing purposes, the Department is directed to allow a remote seller to complete a single audit covering all localities. The bill requires the Department to give remote sellers at least 30 days' notice of any change in tax rate.

The bill provides that upon written application and for good cause shown, the Department shall have the discretion to temporarily suspend or delay the collection or reporting requirements of a marketplace facilitator or remote seller seller for a period not to exceed 184 days after collection is required. The Department is directed to implement protections from penalties and interest for marketplace facilitators that act in good faith but collect an incorrect amount of sales and use tax before January 1, 2026.

The bill repeals several contingent provisions of previous related bills that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. The bill contains technical corrections.