HB 5617
To allow authorized retailers, qualified as workforce training community centes, to retain a portion of consumer sales and use taxes
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill allows certain retailers, designated as ‘workforce training community centers,’ to retain a portion of the sales and use taxes they collect. These retailers must meet specific criteria, including being exempt from federal income tax and having a history of assisting individuals with barriers to employment. The retained tax revenue can then be used to fund job training and placement services, primarily for people with disabilities or other employment challenges. The bill includes provisions for certification, limitations on retention amounts, reporting requirements, and potential revocation of certification if standards aren’t met.
Key provisions
- Retailers meeting specific criteria can be certified as ‘workforce training community centers’.
- These organizations can retain up to 75% of collected consumer sales and use tax revenue (after a $1 million threshold).
- Retained tax revenue must be used for job training and placement services, including job coaching and post-employment support.
- Organizations must demonstrate successful job placement rates (at least 2.25 people placed per $10,000 of retained tax).
- Certifications last for three years and can be renewed upon meeting specific compliance requirements.
- The department can revoke certification for non-compliance.
- Retailers must remit sales taxes collected on sales where they retain tax revenue.
- A retailer whose certification is revoked must remit a certain amount of retained tax revenue to the department.
Who is affected
- Retailers
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