Spotsylvania News

Jeff Branscome writes about Spotsylvania County.

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Will Edd Houck Bill Get County’s Sales Tax Revenue Back?

There is no doubt that Spotsylvania County is losing sales tax revenue to Fredericksburg and possibly other neighboring jurisdictions, but no one really knows how much. You can read some background here about the problem. As the story says, the Henrico finance director believes this sales tax problem occurs only in Virginia because of the way local governments and their boundaries were established.

Sen. Edd Houck, D-Spotsylvania, was successful in getting a bill passed that allows the state department of taxation to purchase GPS software and requires the department to report by Sept. 1 to the money committee chairmen on other measures necessary to ensure out-of-state vendors are accurately filing their tax payments to the correct jurisdiction. The GPS software will help with accurately sending sales tax revenue to the correct jurisdiction.

In a May 21 e-mail to county staff, Houck’s legislative assistant wrote that the software change alone "might be sufficient to get the accuracy rate up so that the ZIP code change wasn’t necessary."


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