Online retailers officially have to collect sales tax in Virginia starting in 2013, putting virtual stores on the same playing field as their brick-and-mortar counterparts.
Gov. Bob McDonnell on Wednesday signed into law legisation that closes the so-called Amazon-loophole. His office made no announcement on the signing, but the state’s legislative services website recently updated to reflect the action.
The new law requires online stores with a presence in the state to charge sales tax on every purchase made in Virginia. Previously, the onus was on the buyer to pay the tax in their annual filings to the state, a fact most people didn’t realize. Virginia tax officials didn’t have the time or resources to go after thousands of accidental scofflaws, causing the state to lose out on millions in revenue each year.
McDonnell agreed to the changes in February shortly after Amazon announced it was opening two distribution centers in Virginia, calling it “sound economic policy.”
The Republican governor also signed a bill Wednesday that mandates a minimum life sentence for adults who rape children under the age of 13. The bill was part of McDonnell’s “tough-on-crime” law enforcement agenda introduced at the start of the legislative session.
In all, McDonnell signed more than 120 bills on Wednesday, ahead of Monday’s deadline to act on legislation that passed General Assembly earlier this year.
