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most part, collections will be based on credit-card purchases and consumers need to keep receipts of mail-order purchases for tax purposes.
In 1991, the Virginia General Assembly enacted legislation to require mail-order companies to collect the state’s tax, but the U.S. Supreme Court ruled that states cannot require out-of-state vendors to collect state taxes.
“The whole process of collecting sales tax would be much simpler for all concerned if mail-order firms would collect the tax for the convenience of their customers, but they choose not to,” Forst said. “That leaves the state no recourse but to ask consumers to report the tax directly.”
He said Virginia, like other states, will aggessively pursue collecting the use tax through the state’s CU-7 form, subpoenas of mail-order firms’ records and threeparty information sources such as shipping records and information shared with other states.
Asked for an estimate of how many Virginians will comply with the new law, Bowen said, “We have no idea about compliance; we never know how many people will comply with a new law. There’s no way to tell yet.”
Computer glich
stalls VEC checks
RICHMOND - Problems with the Department of Information Technology (DIT) computer system that handles the Virginia Employment Commission’s (VEC) unemployment insurance workload are seriously delaying the VEC’s ability to process claims and payments.
VEC Commissioner Ralph G. Cantrell said “We apologize for the inconveniences our customers are experiencing due to computer problems and ask the public’s understanding as VEC and DIT staff work to restore prompt computer service.”
DIT Director* J. Westwood Smithers Jr. said, “We are keenly aware of the importance of prompt delivery of unemployment insurance services to the citizens of the commonwealth. My staff are working around the clock to identify and resolve the problems. Fortunately, the VEC is the only state agency served by DIT to be affected.”
The problem has escalated over the last week, reducing useful computer service availability substantially in the VEC’s 42 local unemployment insurance service offices.
Automation has enabled the VEC to enhance its operations dramatically over the years, making it number one in the nation for three consecutive years in the prompt payment of initial unemployment claims.
92.4%