House budget eliminates detested sales tax program

Published



A Virginia tax program that forces businesses to pay one month of sales taxes early would be virtually eliminated under the budget approved Thursday by Virginia’s House of Delegates. The program, which was highly unpopular with restaurants and retailers, requires businesses with sales or purchases of at least $1 million annually to pay 90 percent of their June tax liabilities from the previous year before the fiscal year ends June 30. Normally taxes aren’t due until the month after purchases. The retailers get credited for their payments, but it essentially amounts to an interest-free loan to the state, said Mike Anderson, owner of Mango Mike’s in Alexandria, which had to advance the state $10,000 last year.

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