summary
Introduced
01/14/2026
01/14/2026
In Committee
01/14/2026
01/14/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Regular Session
Bill Summary
Sales and use tax; dealer discount. Provides that the state retail sales and use tax dealer discount percentages allowed from the first three percent of such tax imposed shall be (i) eight percent for monthly taxable sales between $0 and $30,000; (ii) four percent for monthly taxable sales between $30,001 and $62,500; (iii) 1.2 percent for monthly taxable sales between $62,501 and $208,000; and (iv) 0.8 percent for monthly taxable sales of $208,001 and above. Under current statutory law, such dealer discount percentages are (a) four percent for monthly taxable sales between $0 and $62,500; (b) three percent for monthly taxable sales between $62,501 and $208,000; and (c) two percent for monthly taxable sales of $208,001 and above. However, superseding budgetary provisions (1) limit such dealer discount percentages to (A) 1.6 percent for monthly taxable sales between $0 and $62,500; (B) 1.2 percent for monthly taxable sales between $62,501 to $208,000; and (C) 0.8 percent for monthly taxable sales of $208,001 and above and (2) suspend the discount entirely for dealers subject to the electronic funds transfer requirement in relevant law.
AI Summary
This bill modifies the discount percentages that dealers receive for collecting and remitting state retail sales and use taxes. Currently, the discount is tiered based on monthly taxable sales, with higher percentages for lower sales volumes. However, budgetary provisions have reduced these percentages and suspended the discount entirely for dealers required to make payments electronically. This bill proposes new, generally higher discount percentages for the first three percent of tax collected, with specific rates for different monthly taxable sales brackets: 8% for sales up to $30,000, 4% for sales between $30,001 and $62,500, 1.2% for sales between $62,501 and $208,000, and 0.8% for sales over $208,000. The bill aims to adjust these dealer discounts, which are intended to compensate businesses for the administrative task of collecting and paying sales tax.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Passed by indefinitely in Finance and Appropriations (10-Y 4-N) (on 01/28/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20261/SB697 |
| Fiscal Note/Analysis - Fiscal Impact statement From TAX (1/26/2026 11:29 pm) | https://lis.blob.core.windows.net/files/1097215.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/SB697/text/SB697 |
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