Source: https://budget.lis.virginia.gov/amendment/2019/1/SB1100/Introduced/CA/4-14/1s/
Timestamp: 2019-11-12 07:51:08
Document Index: 785410568

Matched Legal Cases: ['§ 1', '§ 33', '§ 32', '§1396', '§ 42', '§ 1396', '§ 32', '§ 438', '§ 447', '§ 447', '§ 58', '§ 108', '§ 108', '§ 108', '§ 199', '§ 199', '§ 199', '§ 11027', '§ 11027', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58']

4-14#1s (Additional Enactments) Remove Remote Sellers Sales Tax Language. SB1100 - Committee Approved
Bill Order » Item 4-14 #1s
Remove Remote Sellers Sales Tax Language (language only)
Item 4-14 #1s
Page 630, strike lines 47 through 49.
Page 631, strike lines 1 through 47.
Page 632, strike lines 1 through 6.
(This amendment removes language proposed by the Governor that would amend the Code of Virginia by adding in Chapter 6 of Title 58.1 sections numbered 58.1-612.1 and 58.1-612.2. These changes included in the introduced budget would establish economic nexus as the criteria for collecting retail sales and use tax and would require certain remote sellers and marketplace facilitators to collect the tax. The language proposed by the Governor in the introduced budget is in conflict with Senate Bill 1083 which passed the Senate.)
This act is effective on July 1, 2018 on its passage as provided in § 1-214, Code of Virginia..
23. That §§ 33.2-1904, 33.2-1907 and 33.2-2502 of the Code of Virginia are amended and reenacted as follows:
All members of the Authority shall serve terms coincident with their terms of office, except that the gubernatorial appointee who is not a member of the Board shall serve for a term of four years. A vacancy occurring other than by expiration of a term shall be filled for the unexpired term. Vacancies shall be filled in the same manner as the original appointments. The Authority shall appoint a chairman and vice-chairman from among its members.
34. That the Code of Virginia is amended by adding in Article 1 of Chapter 10 of Title 32.1 sections numbered 32.1-332.01, and 32.1-332.02 as follows:
§ 32.1-331.01. Health Care Coverage Assessment Fund.
"Covered hospital" means any in-state private acute care hospital other than a hospital classified as a public hospital, freestanding psychiatric and rehabilitation hospital, children's hospital, long stay hospital, long-term care hospital, or critical access hospital.
"Newly eligible adult" means an individual described in 42 U.S.C. §1396a(a)(10)(A)(i)(VIII).
"State Plan" means the state plan for medical assistance under Title XIX (§ 42 U.S.C. § 1396 et seq.) of the Social Security Act.
B. There is hereby created in the state treasury a special nonreverting fund to be known as the Health Care Coverage Assessment Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All revenues collected or received as a result of imposition of a health care coverage assessment on covered hospitals and any other such moneys, public or private, received for the administration of the health care coverage assessment shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys deposited to the Fund shall be used solely for the nonfederal share of the cost of medical assistance for newly eligible adults, the administrative costs of collecting the assessment and implementing and operating the coverage for newly eligible adults. Such moneys shall be appropriated as provided in the general appropriation act. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Director of the Department of Medical Assistance Services.
§ 32.1-331.02. Health Care Provider Payment Rate Assessment Fund.
"Managed care organization hospital payment gap" means the difference between the amount included in rates for inpatient and outpatient services provided by covered hospitals, based on historical paid claims, and the amount that would be included when hospital services are priced according to the existing State Plan methodology but using 100 percent of the adjustment factors, including the capital reimbursement percentage, and full inflation subject to approval by the Centers for Medicare and Medicaid Services pursuant to 42 C.F.R. § 438.6(c).
"Upper payment limit" means the amount equal to the maximum amount of payment for inpatient services for recipients of medical assistance services established in accordance with 42 C.F.R § 447.272 and outpatient services for recipients of medical assistance services pursuant to 42 CFR § 447.321.
B. There is hereby created in the state treasury a special nonreverting fund to be known as the Health Care Payment Rate Assessment Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller. All revenues collected or received as a result of imposition of a health care payment rate assessment on covered hospitals and any other such moneys, public or private, received for the administration of the health care payment assessment shall be paid into the state treasury and credited to the Fund. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys deposited to the Fund shall be used solely for the nonfederal share of the cost of payment rate actions associated with the payment rate assessment as provided in the general appropriation act and the administrative costs of collecting the assessment and of implementing and operating the associated payment rate actions. Such moneys shall be appropriated as provided in the general appropriation act. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Director of the Department of Medical Assistance Services.
45. Effective July 1, 2018, the authority and responsibilities of the Secretary of Technology included in the Code of Virginia shall be executed by the Secretary of Administration and the Secretary of Commerce and Trade pursuant to Item 65 and Item 102 of this act. Any authority or responsibilities of the Secretary of Technology not referenced in Item 65 and Item 102 of this act shall be executed by either the Secretary of Administration or the Secretary of Commerce and Trade as determined by the Governor.
6. That § 58.1-301 of the Code of Virginia is amended and reenacted as follows:
58.1-301. Conformity to Internal Revenue Code.
B. Any reference in this chapter to the laws of the United States relating to federal income taxes shall mean the provisions of the Internal Revenue Code of 1954, and amendments thereto, and other provisions of the laws of the United States relating to federal income taxes, as they existed on February 9, 2018 December 31, 2018, except for:
4. The deferral of certain income under § 108(i) of the Internal Revenue Code. For Virginia income tax purposes, income from the discharge of indebtedness in connection with the reacquisition of an "applicable debt instrument" (as defined under § 108(i) of the Internal Revenue Code) reacquired in the taxable year shall be fully included in the taxpayer's Virginia taxable income for the taxable year, unless the taxpayer elects to include such income in the taxpayer's Virginia taxable income ratably over a three-taxable-year period beginning with taxable year 2009 for transactions completed in taxable year 2009, or over a three-taxable-year period beginning with taxable year 2010 for transactions completed in taxable year 2010 on or before April 21, 2010. For purposes of such election, all other provisions of § 108(i) of the Internal Revenue Code shall apply mutatis mutandis. No other deferral shall be allowed for income from the discharge of indebtedness in connection with the reacquisition of an "applicable debt instrument";
5. The amount of the deduction allowed for domestic production activities pursuant to § 199 of the Internal Revenue Code for taxable years beginning on or after January 1, 2010. For Virginia income tax purposes, two-thirds of the amount deducted pursuant to § 199 of the Internal Revenue Code for federal income tax purposes during the taxable year may be deducted for Virginia income tax purposes for taxable years beginning on and after January 1, 2010. For taxable years beginning on and after January 1, 2013, the entire amount of the deduction allowed for domestic production activities pursuant to § 199 of the Internal Revenue Code may be deducted for Virginia income tax purposes;
c. Any other provision of the Act that affects the computation of federal adjusted gross income of individuals or federal taxable income of corporations for taxable years beginning after December 31, 2016, and before January 1, 2018, other than the temporary reduction in the medical expense deduction floor pursuant to § 11027 of the Act; and
7. The provisions of the Bipartisan Budget Act of 2018 enacted February 9, 2018, as Public Law 115-123, that affect any taxable year other than a taxable year beginning after December 31, 2016, and before January 1, 2018.
6. The temporary reduction in the medical expense deduction floor pursuant to § 11027 of the Tax Cuts and Jobs Act enacted December 22, 2017, as Public Law 115-97, provided, however, that this exception shall not apply to taxable years beginning on and after January 1, 2018.
7. That the Code of Virginia is amended by adding in Chapter 6 of Title 58.1 sections numbered 58.1-612.1 and 58.1-612.2 as follows:
58.1-612.1. Remote Seller Sales Tax Nexus
A. Notwithstanding any other provision of law, if a remote seller engages in, within the current or previous calendar year, retail sales exceeding $100,000 in gross revenues or 200 transactions into the Commonwealth, or any other minimum amount as required by federal law, then such remote seller shall be deemed to have sufficient activity within the Commonwealth to require registration under § 58.1-613 pursuant to § 58.1-612(C), provided that, in determining a remote seller's gross revenues or number of sales transactions, the sales made by all commonly controlled persons as defined in § 58.1-612(D) shall be aggregated.
B. The Tax Commissioner shall not require more than one return per month be filed by any remote seller or software provider subject to the obligation to collect sales tax.
C. All state sales and use tax collected from remote sellers shall be distributed according to the provisions of § 58.1-638. The local sales and use tax shall be paid to localities pursuant to the provisions of § 58.1-605 and § 58.1-606.
D. In administering the collection of state and local sales and use taxes from remote sellers, the Tax Commissioner shall provide adequate information to remote sellers to enable them to identify state and local tax rates and exemptions, provide adequate information to software providers to enable them to make software and services available to remote sellers, and ensure that if the Department requires a periodic audit, the remote seller may complete a single audit which covers the state and local tax in all counties and cities.
E. Prior to any change in the rate of any local sales tax, the Tax Commissioner shall provide remote sellers with at least 30 days' notice. Any change in the rate of any local sales tax shall only become effective on the first calendar day of a calendar quarter. Failure to provide notice pursuant to this section shall require the Commonwealth and the locality to apply the preceding effective rate until 30 days after notification is provided.
58.1-612.2. Marketplace Facilitator Sales Tax Nexus
A. Notwithstanding any other provision of law, a marketplace facilitator shall be deemed to have sufficient activity within the Commonwealth to require registration under § 58.1-613, and shall be required to collect sales tax on all transactions facilitated through his marketplace, if he meets at least one requirement in each of subdivisions 1, 2, and 3 of this section:
1. He engages either directly or indirectly through a commonly controlled person as defined in subsection D of § 58.1-612, in any of the following activities:
2. He engages in any of the following activities with respect to a marketplace seller's products:
e. Branding sales as those of the marketplace facilitator;
f. Advertising or promotion; or
g. Providing customer service or accepting or assisting with returns or exchanges; and
3. He facilitates sales in Virginia that that, in the aggregate, number more than 200 separate retail sale transactions, or that generate more than $100,000 in gross revenue, or other minimum transaction or revenue amounts as may be required by federal law, for such marketplace facilitator. A marketplace facilitator may surpass this threshold based on sales for either the previous or current calendar year. In determining the amount of a marketplace facilitator's gross revenues, the sales made by all commonly controlled persons as defined in subsection D of § 58.1-612 shall be aggregated.
B. No dealer who sells on a marketplace facilitator's marketplace shall collect sales tax on a transaction made through a marketplace facilitator's marketplace.
C. A marketplace facilitator is the sole entity subject to audit by the Department for sales and use tax collection for all transactions facilitated by the marketplace facilitator unless the marketplace facilitator can demonstrate that his failure to collect the proper tax was due to erroneous information provided by the marketplace seller.
D. When a marketplace facilitator lacks physical presence in the Commonwealth, and has both facilitated and made direct sales into the Commonwealth, both types of sales shall be considered in determining whether he has established economic nexus.
E. When a marketplace seller not otherwise required to register for collection of the tax under any of the provisions contained in § 58.1-612 (C) 1 through 9 makes both direct sales and sales on a marketplace facilitator's marketplace, only the marketplace seller's direct sales shall be considered in determining whether the marketplace seller is required to register for the collection of the tax under this section.
8. That the provisions of the sixth enactment of this act shall apply to taxable years beginning on and after January 1, 2018.
9. That the provisions of the seventh enactment of this act shall apply beginning July 1, 2019.
10. That § 58.1-638.2 of the Code of Virginia is repealed.
11. That the provisions of Chapter 766 of the 2013 Acts of Assembly amending §§ 58.1-601, 58.1-602, 58.1-605, 58.1-606, 58.1-612, 58.1-615, 58.1-635, and subdivision 5 of § 58.1-604, as they may become effective, of the Code of Virginia are repealed.
12. That the fourth enactment clause of Chapter 766 of the 2013 Acts of Assembly is amended and reenacted as follows:
13. That the seventh and fifteenth enactment clauses of Chapter 766 of the 2013 Acts of Assembly are repealed.
14. That the twelfth enactment of Chapter 684 of the Acts of Assembly of 2015, as amended by the eighteenth enactments of Chapter 854 and Chapter 856 of the 2018 Acts of Assembly is repealed.
15. That nothing in the tenth, eleventh, twelfth, thirteenth, or fourteenth enactment clauses shall be construed to appropriate or transfer any transportation revenues for non-transportation purposes pursuant to the twenty-second enactment of Chapter 896 of the Acts of Assembly of 2007 or the fourteenth enactment of Chapter 766 of the Acts of Assembly of 2013.
516. That the provisions of the first, second and fourth fifth enactments of this act shall expire at midnight on June 30, 2020. The provisions of the second and third, fourth, sixth, seventh, eighth, ninth, tenth, eleventh, twelfth, thirteenth, fourteenth, and fifteenth enactments shall have no expiration date.