Elephant Ears

This blog is dedicated to the political happenings in the Valley and Southwest Virginia. As the the name implies, this blog will have posts based on what is heard by this elephant's (GOPer's) ears. It is also a great treat to get while at the county fair or a carnival.

Sunday, July 23, 2006

Sales Tax Holiday

Many of you have probably seen the NLS rant against the new sales tax holiday and what it covers and what it doesn't cover. It does look quite ridiculous. Many are wondering why it we are giving tax breaks on diapers but not computers.

I have the answer: The Senate did it, and the House went along with it.

SB571 was patroned by Sen. Ryan McDougle and co-sponsored by Del. Chris Saxman. The original bill said this:
...school supplies, or clothing and footwear designed to be worn on or about the human body, provided that the selling price of each article is $100 or less; (ii) computer systems, provided that the selling price of each system is $1,500 or less; or (iii) computers, computer hardware, computer software, or portable or hand-held calculators, provided that the selling price of each item is $500 or less...

When the bill came out of Senate Finance Cmte (which McDougle is not on) and then the full Senate; the bill said this:
...school supplies including, but not limited to, dictionaries, notebooks, pens, pencils, notebook paper, and calculators, and (ii) clothing and footwear designed to be worn on or about the human body. The tax exemption shall apply to each article of school supplies with a selling price of $20 or less, and each article of clothing or footwear with a selling price of $100 or less...

The House then passed the original version with the computer exemption but it was defeated unanimously in the Senate. A conference committee was formed of Senators McDougle, Hanger and Saslaw and Delegates Parrish, Purkey and Hull. The conference committee essentially agreed on the Senate Finance verison of the bill and it then passed both houses unanimously.


It then appears the governor set the actual items it would entail since it says "including but not limited to..." but I am not positive of this.

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