December 11, 2012
RICHMOND, Virginia (AP) — The revised budget Gov. Bob McDonnell presents to legislators next week will end the accelerated sales tax for all but about 200 Virginia retail merchants, freeing 98 percent of dealers from the 3Â½-year-old budget-balancing scheme.
The governor's office announced Tuesday that McDonnell will include nearly $21 million to offset revenue lost from drastically reducing the number of dealers subject to the accelerated sales tax.
Merchants despise the requirement that they make early estimated sales tax payments.
It was enacted to shore up state finances at the depth of the recession in 2009. McDonnell asked lawmakers in 2011 to phase it out early.
McDonnell proposes boosting the threshold for paying the tax from $26 million in annual taxable sales to $48.5 million. He calls the tax bad policy that's anti-business.
Story copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.