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Posted at 01:55 PM ET, 12/16/2011

Unwinding the accelerated sales tax


A press release from the Gov. Robert McDonnell’s office lands in my in-box. It’s titled “Governor’s Budget Will Rapidly Speed up Elimination of Unfair Sales Tax Policy for Retailers.” Intrigued that one of the most egregious sleights-of-hand the political class used to balance the state’s books in 2010 might be on its deathbed, I read on to discover that, indeed, most, but not all, businesses will benefit:

…by the end of Fiscal Year 2012 95.6% of affected sales tax dealers will no longer have to make accelerated payments to the state. The Governor will include $50 million to facilitate this policy change. The Governor had earlier sought to begin unwinding the accelerated sales tax beginning in FY2013. With today’s action, the governor has sped up the process substantially.

That’s good news. Extorting 13 months worth of sales tax payments from retailers each calendar year was a nasty habit the General Assembly swore off, via legislation, a few years ago. But when the state’s finances turned sour after the housing bubble burst, the worthies went back to their old habits with embarrassing speed.

That’s why I found the governor’s statement about all this rather odd:

[Continue reading Norman Leahy’s post at Bearing Drift.]

Norman Leahy blogs at Bearing Drift. The Local Blog Network is a group of bloggers from around the D.C. region who have agreed to make regular contributions to All Opinions Are Local.

By Norman Leahy  |  01:55 PM ET, 12/16/2011

 
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