News

Only 4 more days in the 2016 Virginia General Assembly Session.

447 legislation pieces await action by the House of Delegates and the Senate.

246 bills have been approved by both houses and the Governor.

5 bills have been vetoed by Governor McAuliffe.

241 bills have been continued to next year’s Session.

The Accelerated Sales Tax (AST) threshold increase has been a significant issue for retailers.

The good news is that both the House of Delegates and the Senate maintained the AST threshold increase that the Governor initially put in the budget.

The threshold will increase to $10 million in taxable sales in the first year and $25 million in the second year.

However, the current threshold of $2.5 million in taxable sales will remain effective until 2017.

This Thursday, both chambers will vote on the complete budget passage.

It’s day 49 of the 60-day 2016 Virginia General Assembly Session. To date, 682 pieces of legislation await action by the House of Delegates and the Senate.

Significant updates include:

Accelerated Sales Tax (AST) Threshold

Both the House of Delegates and the Senate maintained the AST threshold increase that the Governor initially put in the budget, supported by VRF. The threshold will increase to $10 million in the first year and $25 million in the second year. However, the current threshold remains effective until 2017.

Felony Larceny Threshold

SB 23 (Reeves), opposed by VRF, was defeated in the House Courts of Justice Subcommittee. Previously, SB 23 was proposed to increase the threshold for larceny conviction from the current $200 to $500. The law will remain as it currently exists.

We expect continued conversation around the Felony Larceny Threshold. VRF will continue to proactively represent and support the best interest of Virginia retailers concerning this issue.

Right to Work

HB 4 (Bell, Richard) Constitutional amendment regarding Virginia as a right to work Commonwealth and will be included in the November 2016 election, passed both houses and was approved by Governor McAuliffe.

The right to work issue is important  to all employers in VA; it protects the workers’ right to not be required to join a labor union.  HB4  provides for a referendum on the ballot in November 2016 election. If the voters of Virginia pass the referendum in November, it then becomes a part of the VA Constitution. Becoming a part of the Constitution of Virginia solidifies the importance of this issue to the Commonwealth.

Forty-two days down and counting in the sixty-day 2016 Virginia General Assembly Session.

To date, 547 pieces of legislation have passed the House of Delegates and the Senate, and 1,030 pieces await decisions.

Last week was "Crossover," which means each body has completed work on its own legislation and will now review legislation from the other body.

Significant updates include:

ACCELERATED SALES TAX THRESHOLD

The good news...

The good news for our members is that both the Senate Finance Committee and the House Appropriations Committee maintained the increase in their budget plans announced on Sunday.

Both budget plans increase the AST threshold from the current level of $2.5 million up to $10 million in the first year of the budget, then up to $25 million for the second year of the budget.

Changes starting in 2017...

However, it is important to note that the current level of AST does not unwind until 2017, which means that our members will pay AST at the current level of $2.5 million for 2016.

Waiting for final negotiations...

Each will adopt their own budget on Thursday, February 25 and begin the process of negotiation for a final budget.

Your VRF team will continue to monitor this issue for the remainder of Session to ensure that it remains in the budget.

FELONY LARCENY THRESHOLD

Proposed bill...

SB 23 (Sen. Reeves) proposes to increase the felony larceny threshold from the current $200 up to $500

The good news...

Sen. Reeves's proposed increase to the felony threshold was defeated in the House Courts Criminal Law sub-committee on Monday afternoon. Thanks to our members who came and testified against the increase.

The VRF continues to closely monitor actions in the General Assembly to proactively represent and support the legislative interests of Virginia retailers.

It is the 35^th day of the 2016 Virginia General Assembly Session. To date, 1763 pieces of legislation are pending review by the House of Delegates and the Senate. Today is “Crossover” which means each house must complete work on its own legislation in order to send it to the opposite body. The Budget Bill(s) and revenue bills will continue to be considered and are not committed to today’s deadline. VRF continues to track more than 100 bills which potentially impact your business.

Recent actions include:

Right to Work

HB 4 (Del. Dickie Bell) and SJ 127 (Sen. Richard Obenshain) provide a voter referendum for the November 8, 2016 election to approve or reject an amendment to ensure Virginia remains a “right to work” state. HB 4 passed the House and the Senate and SJ 127 has passed the Senate so far.

Parental Leave

HB 33 (Del. Peter Farrell) creates an income tax credit for small businesses that provide full-time employees salary while on leave for birth or adoption. HB 33 was defeated in subcommittee.

Plastic Bag Tax

SB 720 (Sen. Lynwood Lewis) provides localities the opportunity to impose a tax on plastic bags. SB 720 was defeated in committee

Tax Reforms

HB 165 (Del. Peter Farrell) allows localities an exemption for meals and food and beverage taxes for fundraising purposes. HB 165 was continued to the 2017 General Assembly Session.

HB 966 (Del. Glen Davis) restructures corporate income tax apportionment. HB 966 was continued to the 2017 General Assembly Session.

HB 969 (Del. Glen Davis) restructures sales and use taxes, commonly referred to as “streamlining.” HB 969 was continued to the 2017 General Assembly Session.

ABC Licensing

HB 904 (Del. Steve Landes) proposes for retail cigar shops to serve alcoholic beverages. HB 904 is pending review in the House of Delegates.

Airbnb

HB 1268 (Del. Scott Taylor), SB 416 (Sen. Jill Vogel) and SB 751 (Sen. Bill DeSteph) impose requirements as well as opportunities for localities to account for Air B & B’s regarding tax and information collection. HB 1268 was defeated in subcommittee. SB 416 and SB 751 are under consideration in the Senate Finance Committee

SWAM - Small, Women-owned, Minority-owned Businesses

HB 971 (Del. Alfonso Lopez) redefines “small businesses” in order for small, women-owned, and minority-owned businesses to be eligible for procurement business. HB 971 was defeated in the House of Delegates.

Accelerated Sales Tax

VRF remains committed to supporting Governor McAuliffe’s budget proposal to provide relief for the Accelerated Sales Tax (AST). The Governor’s proposal includes an increase to the threshold to pay the AST from $2.5 M to $10 M, and the second year of his biennial budget will again raise the AST to $25 M.

It is the 28th day of the 2016 Virginia General Assembly Session. To date, 2015 pieces of legislation are pending review by the House of Delegates and the Senate. VRF continues to track more than 100 bills which potentially impact your business.

Recent actions include:

Minimum Wage Increase
Three bills to increase the mandated minimum wage were defeated in committee: SB 88 (Senator Marsden), SB 129 (Senator Edwards), SB 668 (Senator Favola). VRF opposed these bills.

Paid Sick Leave
Senator Wexton's bill to require paid sick leave for employees SB 274 was defeated in committee. VRF opposed this bill

Plastic Bag Bans & Taxes
Senator Lewis'€™ SB 720 to provide a local option for plastic bag bans or taxes remains in the committee. VRF opposes this bill.

Public School Before Labor Day
Senator Garrett'€™s SB 340 to change the current law which allows local school boards to apply to the State Board of Education for waivers to begin school before the Labor Day Weekend holiday was defeated in committee.

ABC Mixed Beverage Licensing Bills
Delegate Albo's HB 171 and Delegate Taylor's HB 219 regarding the food to beverage ratio for mixed beverages were reported from subcommittee. VRF monitored these bills.
Delegate Albo's HB 226 to allow ABC mixed beverage licenses for performing arts facilities is pending review in the Senate Rehabilitation and Social Services Committee. VRF is monitoring this bill.

State & Local Tax Reform
Delegate LeMunyon's bill to provide tax reform HB 214 was defeated in subcommittee. VRF monitored this bill.

Increase to Larceny Threshold
SB 23 (Reeves) proposes an increase to the grand larceny threshold to $500. SB 23 passed the Senate by a vote 26 Y, 14 N. This bill will be referred to the House Courts of Justice Subcommittee chaired by Delegate Rob Bell of Albemarle County, and we anticipate the subcommittee will defeat the bill as it did with the two House bills to increase the larceny threshold. VRF will continue to oppose efforts to increase the threshold.

VRF remains committed to supporting Governor McAuliffe's budget proposal to provide relief for the Accelerated Sales Tax (AST).
The Governor's proposal includes an increase to the threshold to pay the AST from $2.5 M to $10 M, and the second year of his biennial budget will again raise the AST to $25 M.