Virginia Increases Threshold for Accelerated Sales Tax Payments
- May 2, 2014 | Gail Cole
Since 2010, certain taxpayers in Virginia have been required to make early estimated sales tax payments under the state’s Accelerated Sales Tax (AST) program. Former Governor Bob McDonnell (R) strove to eliminate the AST program and succeeded in increasing the threshold for participation while in office. Now that threshold is being increased again.
Beginning in 2014, the threshold to taxable sales and/or purchases increases to “$48.5 million or greater in the previous fiscal year.” Any dealer meeting that threshold “is required to make a payment in June equal to 90 percent of its Retail Sales and Use Tax liability for the June of the previous year.”
Not sure if you’re required to make an accelerated sales tax payment? The Virginia Department of Taxation “will notify each affected Dealer in May of each year of his obligation to make an accelerated sales tax payment.” Additional details are provided in early June, and the accelerated sales tax payment is due in July.
If the General Assembly of Virginia has its way, the AST program will be phased out by June 2021. Until that time, qualifying taxpayers are required to participate.
Additional information is available under Rulings of the Tax Commissioner, Guidelines for the Accelerated Sales Tax Payment. Click on this link and search for document number 14-58.