Plan to apply sales tax to online transactions advances
RICHMOND, Va. (AP) — A plan to begin taxing online sales in Virginia has advanced, but the senate majority leader has given lobbyists for eBay and other electronic marketplaces until early next week to craft a compromise around when they’ll begin collecting taxes from small sellers.
The Richmond Times-Dispatch reports the Senate Finance Committee on Thursday voted unanimously to apply Virginia’s sales tax to internet transactions, following last year’s U.S. Supreme Court ruling eliminating a longstanding prohibition.
Online transactions by sellers and marketplaces that do at least $100,000 in sales or 200 transactions in the state would be taxed.
Traditional retailers oppose an eBay-backed provision delaying the requirement from July 1 to Jan. 1, 2020. Secretary of Finance Aubrey Layne says the delay would reduce the amount of money available to spend in the state budget.
Information from: Richmond Times-Dispatch, http://www.richmond.com