When Virginians make purchases from Amazon.com they are not paying sales tax on that item (unless the consumer reports it on their taxes).
The Virginia General Assembly is considering a bill to change that.
The bill clarifies the current law, which says that any retailer with a physical presence in Virginia must collect and remit the 5 percent sales tax. Amazon, which has two facilities in Virginia, hasn’t done that.
Apparently a 2007 ruling from the state tax department said that Amazon isn’t required to collect and remit sales tax because its facilities in Virginia don’t handle sales.
To add to the story, it was announced last month that Amazon would receive more than $4.3 million in financial aid and other incentives from the state to build two fulfillment centers outside of Richmond. Those centers would bring 1,350 jobs to the area. Amazon is investing $135 million in the buildings.
The retail community has voiced its displeasure with the loophole.