Virginia governor announces US retail legislation agreement
March 07, 2012
Virginia Governor Bob McDonnell recently announced an agreement with Amazon.com that will allow the online retail giant to collect sales tax from customers in the state as early as September of next year.
The General Assembly recently gave its final approval to Senate Bill 597, a piece of U.S. retail legislation
that expands on an existing state law requiring online businesses with a physical presence in Virginia to pay the state's sales tax. The development coincides with Amazon's plans to dedicate $135 million toward establishing two fulfillment centers in the state.
"This bill helps to ensure that online retailers with a physical presence in Virginia are treated the same as traditional brick-and-mortar retailers who are already required to collect and remit existing sales taxes on goods sold in the commonwealth," said McDonnell in a statement.
According to State Senator Frank Wagner, the U.S. retail compliance
change will garner at least $23 million in state tax revenues from Amazon in 2013 alone.