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Virginia Gov. Wants To Remove Early Sales Tax Payments

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Virginia's Governor is proposing an end to the commonwealth's accelerated sales tax for most retailers.

The revised budget Gov. Bob McDonnell presents to legislators next week will eliminate the requirement that businesses pay estimated sales taxes early for all but about 200 Virginia retail merchants, freeing up 98 percent of dealers from the budget-balancing tactic that was implemented more than three years ago. 

McDonnell's budget will include nearly $21 million to offset revenue lost from drastically reducing the number of dealers subject to the accelerated sales tax, governor's office says.

Many merchants say they despise the requirement that they make early estimated sales tax payments and McDonnell has called the measure a budget gimmick that is anti-business. It was enacted in 2009 to shore up state finances at the depth of the recession. Last year, McDonnell asked lawmakers to start phasing it out early. 

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