INVESTIGATES
Virginia has no law to punish retailers who wrongly collect sales tax 
06:27 PM EDT on Friday, August 1, 2008
NORFOLK – A 13News Moneywatch investigation has found evidence of some 2,000 retailers in Virginia wrongly charging sales tax on a wide range of over-the-counter products like medicated mouthwash, shave cream and powder, eye drops and other first-aid products.
When stores get it wrong, sometimes people who least can afford it pay those few extra cents they could use for gas or food.
In an exclusive interview, Governor Tim Kaine was asked why 13News is finding more and more stores charging sales tax on items that were made tax-free more than 10 years ago.
“I mean, this is an issue of budget politics. When times are tough, every state agency, we've done two rounds of budget cuts, and we're really, really operating tight, and so we rely on people to follow the law," he said.
The Department of Taxation, however, has not seen any budget cuts. Officials say 200 auditors just aren’t enough to spend a few short hours, on occasion, spot checking retailers, like we did, to make sure they’re not charging tax on tax-exempt items.
"We love the fact that you guys are doing this. And if you find people who are doing it wrong, we'll make sure they improve and suffer the consequences for the fact they have done it wrong,” Kaine stressed.
13News learned there is no law to punish a retailer who wrongly collects sales tax.
13News Investigators continue to ask the state why, after we uncovered evidence of widespread errors, did the state only contact a handful of stores where we found problems rather than remind all retailers of the law. We have yet to get a direct answer to that.
But Governor Kaine says when people are being overcharged tax, the problem needs to be corrected.
"Absolutely, it is critically important," Kaine noted.
If you're overcharged on items, demand your money back.
Forums, Photos & More
Explore: Find Web sites making news in our Links in the News section.
Keep Up: Have 13News headlines delivered to your RSS reader.
Tell us: Is there something you believe 13NEWS should investigate? Please let us know.
More 13News Investigates
Read the complaint: Fight at bar leaves man with brain injury, club without a license ![]()
Sex offenders found living in area nursing homes ![]()
Black Friday weekend sees increase in shoplifting ![]()
Virginia has no law to punish retailers who wrongly collect sales tax ![]()
13News Investigates: State calls tax-exempt charges "small mistakes" ![]()
Today's Most Read Stories
Norfolk man shot and killed early Sunday morning
Study: Va.'s aging population to double
Hampton residents want Fort Monroe to be a park
Today's Most E-mailed Stories
Popular Stories











You must be logged in to contribute. Log in | Register Now!
You are logged in as screenname | Log Out
You are logged in, but do not have a "screen" name. Update Your Profile