Source: http://dls.virginia.gov/pubs/summary/2006/06sum51.htm
Timestamp: 2017-11-22 18:35:48
Document Index: 79653032

Matched Legal Cases: ['§ 58', '§ 56', '§ 56', '§ 58', '§ 58', '§ 170', '§ 170']

General Assembly>Division of Legislative Services>Publications>Session Summaries>2006>Taxation
Sales and use tax exemption; medicines for farm animals. Exempts medicines for commercial farm animals from sales and use tax. This bill is identical to SB 73.
P HB121
Real property tax exemption; elderly and disabled. Changes certain provisions regarding real estate tax exemptions for the elderly and disabled by: (i) for localities in Northern Virginia, increasing from $340,000 to $540,000 the maximum financial worth cap a locality may impose and adding Clarke, Fauquier, and Stafford Counties to the localities in Northern Virginia for which the higher cap is applicable; and (ii) for certain other localities in central Virginia and Tidewater, increasing such cap from $200,000 to $350,000, and adding cities of Norfolk and Richmond to the localities for which the higher cap is applicable. This bill incorporates HB 87, HB 277, HB 540, HB 560, HB 1097, and HB 1444.
P HB168
False claims of employment status; penalty. Makes it unlawful for a person to knowingly coerce, induce, or threaten an individual to falsely declare his employment status for the purpose of evading the withholding or payment of individual income tax. This bill also makes it unlawful for an employer to falsely claim the employment status of an individual employed by him for the purpose of evading the withholding or payment of individual income tax. "Employment status" has the same meaning as defined by the United States Internal Revenue Code. The penalty for violation is a Class 1 misdemeanor.
P HB194
Tax sales of real estate. Deletes the deposition requirement and replaces it with the written report of the real estate appraiser where there is no dispute as to title or value of the property in order for the court to appoint a special commissioner to sell the property and execute the deeds. This change is intended to make tax sales less costly.
P HB327
Personal property tax; classification of watercraft used for business purposes. Creates separate classes of personal property for rate purposes of watercraft based on the weight of the watercraft and whether it is used for business purposes.
Department of Taxation; earned income tax credit information. Requires the Department of Taxation to obtain information from each income tax taxpayer on whether he claimed a federal earned income tax credit and the amount claimed and permits the Department of Taxation to provide this and other information to the Department of Social Services regarding clients of the Department of Social Services, and permits the Department of Social Services to provide related information to the Department of Taxation. This bill is identical to SB 42.
Real estate reassessment; notice. Requires localities to add onto the notice to taxpayers of real estate reassessments the amount of the immediately prior assessment amount, and if the tax rate that will apply to the new assessed value has been established, then the notice shall include such rate, the total amount of the new tax levy, and the percentage change in the new tax levy from the immediately prior one. If the tax rate that will apply to the new assessed value has not been established, then the notice shall include the time and place of the next meeting of the local governing body at which public testimony will be accepted on any real estate tax rate changes. This bill incorporates HB 1298.
Local tourism zones. Allows any county, city, or town to establish, by local ordinance, a local tourism zone with tax incentives and regulatory flexibility.
Tire recycling fee; extension of time. This bill would extend from July 1, 2006, to July 1, 2008, the $1.00 fee imposed on the sale of each new tire. Beginning July 1, 2008, the fee would decrease to $0.50 per tire.
Sales and use tax; semiconductor production exemption. Provides a sales and use tax exemption for tangible personal property used in semiconductor manufacturing as well as other semiconductor equipment. This bill is identical to SB 475.
Conformity of taxation with Internal Revenue Code; emergency. Provides that any reference to federal income tax laws in Chapter 3 (§ 58.1-300 et seq.) of Title 58.1 refers to the federal law as it exists on December 31, 2005. Current law specifies that such references refer to federal law as it existed on January 7, 2005. This bill contains an emergency clause and is identical to SB 69.
Sales and use tax exemption; school supplies, clothing and footwear, and computers. Provides a sales and use tax exemption, beginning in 2006, for certain school supplies, clothing and footwear purchased during a three-day period each year beginning on the first Friday in August. The exempt items are: each school supply item with a selling price of $20 or less and each article of clothing or footwear with a selling price of $100 or less. The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchasers of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner. The bill incorporates HB 121, HB 131, HB 484, HB 509, HB 528, HB 708, HB 1125, and HB 1206 and is identical to SB 571. This bill is identical to SB 571.
Motor fuels tax; DMV suggested changes; penalties. Eliminates registered and certified mail requirements for assessments; requires certified mail for license cancellation notices; prohibits use of letters of credit as security; allows for license denial or cancellation for failure to obtain a new or additional certificate of deposit; requires persons who transport motor fuel for hire to file monthly returns; establishes a Class 1 misdemeanor for willfully and intentionally applying for or collecting a refund on taxable fuel or for willfully and intentionally using fuel for a taxable purpose after a refund for the fuel has been issued. It also grandfathers licensed persons who have an irrevocable letter of credit with DMV prior to June 30, 2006, so they will not be required to replace such letters.
P HB568
Communications tax reform. Completely revises the taxation of communications services as follows. Applies a statewide communications sales and use tax to retail communication and video services on a competitively neutral basis. The communications sales and use tax rate will be 5 percent on the following: Local Exchange; Paging; Inter-Exchange (Both interstate and intrastate); Cable Television; Satellite Television; Wireless; and Voice over the Internet (VoIP).
A $0.75 "911 Tax" will be applied to each local exchange line (landline) and the current $0.75 "911 Fee" will continue to be applied to each wireless number.
The state communications sales and use tax, and state 911 fees and taxes replace the following currently billed taxes and fees: Local Consumer Utility Tax (LCUT); Local Gross Receipts Tax (BPOL) - (Only the portion above 0.5 percent currently billed to customers, where applicable); Local E-911; Virginia Relay Fee; and Cable Franchise Fee.
A statewide rights-of-way use fee will be applied to all cable TV service lines as is currently applied on all local exchange telephone lines. The rate of the fee will be the same as determined annually by the Virginia Department of Transportation in accordance with § 56-468.1 of the Virginia Code.
The sales and use tax, 911 tax, and the cable rights-of-way fee assessed on consumers of video services from a single provider will be remitted to the Virginia Department of Taxation, which will administer the distribution of the Communications Sales and Use Tax Trust Fund within 30 days of receipt of the collections for a given month. The rights-of-way use fee assessed on consumers of both cable video services and voice services from a single provider will be remitted in accordance with subsection I of § 56-468.1. The 911 fees will be remitted directly to the Wireless 911 Board for administration.
The redistribution of taxes and fees is intended to be revenue neutral to localities and the Wireless 911 Board and shall cover the current cost of the Virginia Relay Center.
The provisions of the act will be effective on January 1, 2007.
Cigarette tax; penalty for failure to properly affix stamps. Increases from $250 to $500 the penalty for failure to affix tax stamps to 100 or more packs of cigarettes. If the number of unstamped packs exceeds 500, it shall be prima facie of intent to defraud. If a person sells, transports, receives or possesses 3,000 or more packages of unstamped cigarettes, the Tax Department may impose a penalty, not to exceed $2,500 per pack.
Sales and use tax; exemption for certain church property. Expands the current exemption for tangible personal property purchased by nonprofit churches to include that which is used in any form for recording and reproducing services.
Cigarette tax; deduction of bad debts from taxes owed. Permits stamping agents to deduct the cost of the tax stamps on cigarettes they have sold but for which payment is uncollectible. This bill is identical to SB 418.
Tax administration; judicial appeals of assessments. Precludes circuit courts from granting relief to taxpayers seeking correction of erroneous assessments in cases in which the erroneous assessment was attributable to the taxpayer's willful failure or refusal to provide necessary information as required by law.
P HB779
Transient occupancy tax on certain rentals. Raises the maximum amount of transient occupancy tax that Nelson County may charge for the rental of condominiums, apartments, townhouses, or like buildings from 2 percent to 5 percent, and requires any additional revenue to be spent on tourism.
P HB784
Lottery; penalty. Makes changes that will enhance the ability of the Lottery to continue as a strong revenue producer for the Commonwealth, such as allowing licensed agents to provide other surety besides a bond that is satisfactory to the Lottery Director; allows lottery ticket sales be in cash or by debit card; creating a Class 5 felony for making, printing, or otherwise producing a document purporting to be Lottery correspondence; and reduces certain other penalties from a Class 2 to a Class 3 felony.
Individual income taxes; credit for purchase of long-term care insurance. Provides a credit against individual income taxes for certain long-term care insurance premiums paid by the individual during the taxable year. The amount of the credit for each taxable year shall equal 15 percent of the amount paid during the taxable year by the individual in long-term care insurance premiums for long-term care insurance coverage for himself. The total credits over the life of any policy would not be allowed to exceed 15 percent of the amount of premiums paid for the first 12 months of coverage. The credit would be available beginning with the 2006 taxable year. Any unused credit may be carried over in the next five taxable years. The Tax Commissioner shall establish guidelines regarding the information that must be included by a taxpayer with his tax return for proof of payment of the premiums. The credit would replace the current income tax deduction for long-term care insurance. This bill is identical to SB 287.
Personal property tax; classification of certain aircraft. Creates a separate classification for personal property tax rate purposes for aircraft having a registered empty gross weight equal to or greater than 20,000 pounds that are not owned and operated by scheduled air carriers recognized under federal law. Localities are thereby authorized to set a tax rate for such aircraft at any rate that does not exceed that applicable to the general class of tangible personal property. This bill is identical to SB 521.
Local license taxes. Permits localities to select a due date for businesses to apply for annual local licenses between March 1 and May 1 and they must do so no later than the 2007 license year. Under current law the due date is March 1. This bill is identical to SB 522.
State and local sales and use tax and local taxes on meals; gratuities or service charges on meals. Excludes from the sales price of meals all gratuities or service charges for purposes of calculating the sales and use tax and the local tax on meals; however the mandatory service charges or gratuities in excess of 20 percent would still be subject to the sales and use tax and the local meals tax. This bill is identical to SB 85.
Enterprise zone job creation grant program; grant eligible position. Provides that personal service providers would not be eligible for enterprise zone grants.
Real estate tax assessments for open space property; golf courses. Clarifies that golf courses are included in the category of open-space land for purposes of special assessments for real estate tax purposes.
Economic Development for Virginians with Disabilities Grant Program. Creates a grant fund to be distributed to nonprofit organizations that sell donated goods and spend at least 75 percent of their revenues on program services, including employing or training people with disabilities or people with barriers to self-sufficiency. The term "people with barriers to self-sufficiency" is defined as people who have limited or no work experience, a low level of education or training, physical or mental disabilities, or lack of workplace skills.
The grant funds are to assist with capital costs associated with construction of retail stores and other employment facilities. The program shall be administered by the Secretary of Health and Human Resources. The bill is contingent on funding in the appropriation act.
Income tax; agricultural best management practices tax credit. Adds taxpayers who have equines that create needs for agricultural best management practices to those who are engaged in agricultural production for market who may qualify for the agricultural best management practices tax credit, for taxable years beginning on or after January 1, 2007.
Motor vehicle sales and use tax; exemptions. Includes registration certificates issued by the United States Armed Forces as valid documents that can be used by military personnel who have owned a vehicle for more than 12 months to obtain an exemption from the motor vehicle sales and use tax.
Escrow payments on sale of certain tobacco products. Requires the Attorney General to provide nonparticipating tobacco product manufacturers with information regarding the sale of their cigarettes in the Commonwealth in order to facilitate full and accurate escrow payments by such manufacturers. It also requires quarterly escrow payments, rather than annual, by nonparticipating tobacco product manufacturers that (i) are new to the market, (ii) default on any Master Settlement Agreement provisions, or (iii) as determined by the Attorney General, pose a risk of not making their escrow payments in the future.
Coal tax credits. Provides that the $3-per-ton coal employment and production incentive tax credit may be allocated amongst coal producers and electricity generators. The allocation would be pursuant to a contract between such parties. Any amount allocated to a coal producer could be used as credit against the corporate income tax or any other tax imposed by the Commonwealth. Credits on or after January 1, 2006, and prior to July 1, 2011, that exceed the taxpayer's tax liability could be redeemed by the Tax Commissioner. Finally, the carryover period is extended from five to 10 years. This bill is identical to SB 365.
State Lottery Department. Prohibits the sale of lottery tickets over the Internet. The bill provides that nothing shall be construed to prohibit (i) the use of the Internet to relay information or data relating to sales made to purchasers by licensed sales agents, their employees, or employees of the Department or (ii) the sale by the Department of prepaid subscriptions for the purchase of lottery tickets or shares for subsequent prize drawings.
P HB1148
Sales tax on motor fuels. Sets the effective date for sales tax on fuels in certain transportation districts.
Real property assessments; affordable housing. Provides that (i) certain federal, state or local restrictions, as well as special expenses be considered in determining the fair market value and the capitalization rate for certain real property designated as affordable housing, and (ii) federal and state income tax credits with respect to real property shall not be considered real property or income attributable to real property.
Department of Taxation; electronic receipts of certain transactions. Requires the Department of Taxation to accept, in lieu of a printed paper copy of recordation receipts from clerks of Court, a monthly electronic transfer of the recordation receipt copy on magnetic tape or other media acceptable to the Department. This is a recommendation of the Committee on District Courts.
Real estate taxes; computation of deferral. Repeals the requirement that the deferral amount be calculated using a base-line amount equivalent to the real estate tax in the first full tax year of ownership by the taxpayer after the adoption of the deferral program by the locality, multiplied by 105 percent, or such higher percentage adopted by the locality in each tax year until the current tax year.
P HB1235
Sales and use tax revenue in certain public facilities in the City of Norfolk; dedication of revenue. Adds the City of Norfolk to the list of cities permitted to retain the sales and use tax revenue generated in certain public facilities for which Norfolk issues bonds. The retention of the tax revenue expires when the bonds are retired. The bill also provides that public facilities shall not include residential condominiums, townhomes, or residential units.
Tobacco Products Manufacturers. Requires certain tobacco sales reports and documents to be filed directly with the Attorney General. Currently, the Commissioner of Agriculture and the Attorney General receive the reports.
Local taxes; cap on penalty. Provides that the penalty for failing to pay a local tax or assessment shall in no case exceed the amount of the tax assessed.
P HB1290
Machinery and tools tax; method of valuation. Requires commissioners of the revenue, in valuing machinery and tools to consider any bona fide, independent appraisal presented by the taxpayer. The bill would also provide that idle machinery and tools used in certain businesses be taxable as capital and subject to the State intangible personal property tax (the Commonwealth currently exempts intangible personal property from tax). Finally, the bill would require the Tax Commissioner to examine and report on certain related issues.
Transient occupancy tax; Montgomery County. Adds Montgomery County to the list of counties permitted to impose a transient occupancy tax of up to 5 percent, with any amount generated over 2 percent to be spent for tourism purposes.
Tax administration; "jeopardized by delay" definition. Makes a technical change to the definition of "jeopardized by delay" in the BPOL tax and local business tax provisions so it conforms to the state income tax definition.
Sales and use tax; Tax Commissioner's exemption reports. Clarifies the process by which the Tax Commissioner creates and submits sales and use tax exemption reports to the chairmen of the House and Senate Finance Committees.
Real property tax; nonjudicial sale of tax delinquent properties. Clarifies, with regard to nonjudicial sales of tax delinquent properties, (i) the status of other liens against such properties, which are unaffected by the sale; (ii) the means (Treasurer's Deed) by which title is transferred; and (iii) the treatment of excesses and shortfalls in the proceeds of the sale.
P HB1505
Virginia Coalfield Economic Development Authority Tax. Allows localities to use a portion of the revenues for improving water and sewer systems.
Income tax; subtraction for certain death benefit payments. Allows a beneficiary taxpayer to subtract the death benefit payments received from an annuity contract, when calculating Virginia taxable income, that are subject to federal income taxation, for taxable years beginning on or after January 1, 2007.
Sales and use tax; exemption for gas and oil. Extends the sunset date from July 1, 2006, to July 1, 2011, for the sales and use tax exemption for equipment and materials used in drilling and refining natural gas and oil.
P SB42
Department of Taxation; earned income tax credit information. Requires the Department of Taxation to obtain information from each income tax taxpayer on whether he claimed a federal earned income tax credit and the amount claimed and permits the Department of Taxation to provide this and other information to the Department of Social Services regarding clients of the Department of Social Services, and permits the Department of Social Services to provide related information to the Department of Taxation. This bill is identical to HB 407.
Conformity of taxation with Internal Revenue Code; emergency. Provides that any reference to federal income tax laws in Chapter 3 (§ 58.1-300 et seq.) of Title 58.1 refers to the federal law as it exists on December 31, 2005. Current law specifies that such references refer to federal law as it existed on January 7, 2005. This bill contains an emergency clause. This bill incorporates SB 155 and is identical to HB 531.
P SB70
Income taxes; payments to producers of quota tobacco and tobacco quota holders. Provides a subtraction from income, for taxable years beginning on or after January 1, 2006, in computing individual and corporate income taxes for payments to producers of quota tobacco and tobacco quota holders pursuant to the American Jobs Creation Act of 2004.
Sales and use tax exemption; certain medicines and drugs. Exempts from sales and use tax medicines and drugs (i) used by veterinarians in treating agricultural production animals; (ii) sold to farmers for direct use in producing an agricultural product for market; or (iii) used by a veterinarian for agricultural production animals and dispensed or sold on prescription by the veterinarian. This bill is identical to HB 69.
P SB85
State and local sales and use tax and local taxes on meals; gratuities or service charges on meals. Excludes from the sales price of meals all gratuities or service charges for purposes of calculating the sales and use tax and the local tax on meals; however the mandatory service charges and gratuities in excess of 20 percent would still be subject to the sales and use tax and local meals tax. This bill is identical to HB 896.
Local transient occupancy tax; cities and towns. Provides that the transient occupancy tax shall be imposed only for the occupancy of any room or space suitable or intended for occupancy by transients for dwelling, lodging, or sleeping purposes. In 2005 the General Assembly passed a substantially similar restriction for county transient occupancy taxes.
Sales tax exemptions; medicines and drugs. Provides that medicines and drugs purchased by nursing homes, clinics, and similar entities are exempt from sales tax. Currently, only medicines purchased by hospitals and nonprofit nursing homes are exempt from the tax.
Virginia Military Family Relief Fund; contribution of tax refund; report. Establishes the Virginia Military Family Relief Fund, a special nonreverting fund to assist Virginia members of the armed services who have been called to active duty and to assist their families with living expenses. The Fund will be used by the Adjutant General to provide monetary grants to National Guard members and reservists who are called to either state or federal active duty to assist with living expenses. The bill also provides an income tax refund checkoff to individuals who want to contribute all or part of their income tax refund or additional contribution to the Military Family Relief Fund. This bill incorporates SB 385.
P SB186
Use value assessment and taxation; roll-back taxes. Provides that, at the option of the locality, roll-back taxes under local use value assessment ordinances shall not apply to a subdivision, separation, or split-off of property which results in parcels that do not meet minimum acreage requirements, provided that title to the subdivided parcels is held in the name of an immediate family member for at least the first 60 months following the subdivision.
Classification and taxation of property. Provides that in valuing machinery and tools for taxation, the commissioner of the revenue shall, if requested in writing, consider an independent appraisal submitted by the taxpayer. The bill also provides that, for taxable years beginning on or after January 1, 2007, certain certified pollution control equipment and facilities are exempt from state and local taxation, pursuant to Section 6 of Article X of the Constitution of Virginia. Finally, the bill requires that the Tax Commissioner convene a working group to consider several issues relating to the assessment and valuation for appraisals relating to machinery and tools, and to report by November 1, 2006. Further, the bill clarifies that idle machinery and tools are intangible capital segregated for state, not local, taxation.
Individual income taxes; credit for purchase of long-term care insurance. Provides a credit against individual income taxes for certain long-term care insurance premiums paid by the individual during the taxable year. The amount of the credit for each taxable year shall equal 15 percent of the amount paid during the taxable year by the individual in long-term care insurance premiums for long-term care insurance coverage for himself. The total credits over the life of any policy would not be allowed to exceed 15 percent of the amount of premiums paid for the first 12 months of coverage. The credit would be available beginning with the 2006 taxable year. Any unused credit may be carried over in the next five taxable years. The Tax Commissioner shall establish guidelines regarding the information that must be included by a taxpayer with his tax return for proof of payment of the premiums. The credit would replace the current income tax deduction for long-term care insurance. This bill is identical to HB 786.
P SB302
Local taxes; use of collection agents. Prohibits localities from referring delinquent accounts for collection to an attorney, the sheriff, or other delinquent tax collector unless the treasurer has sent written notification of the delinquency to the taxpayer's address as contained in local tax records, or, if the treasurer has reason to believe such address is not current, to such other address that the treasurer may obtain.
Real property tax exemption in redevelopment or conservation areas or rehabilitation districts. Authorizes local governing bodies to provide for the partial exemption from taxation of (i) new structures located in redevelopment or conservation areas or rehabilitation districts and (ii) other improvements to real estate located in redevelopment or conservation areas or rehabilitation districts. The partial exemption would be a percentage of the increase in assessed value as a result of the new structure or improvement or an amount not to exceed 50 percent of the construction cost of such structure or improvement. The local governing body would be allowed to establish criteria for qualifying real estate including, but not limited to, the square footage for new structures. The bill is contingent on a constitutional amendment authorizing the exemption.
Coal tax credits. Provides that the $3-per-ton coal employment and production incentive tax credit may be allocated among coal producers and electricity generators. The allocation would be pursuant to a contract between such parties. Any amount allocated to a coal producer could be used as credit against the corporate income tax or any other tax imposed by the Commonwealth. Credits earned on or after January 1, 2006, and prior to January 1, 2011, that exceed the taxpayer's tax liability could be redeemed by the Tax Commissioner. Finally, the carryover period is extended from 5 to 10 years. This bill is identical to HB 1043.
Property taxes; generating equipment of electric suppliers. Provides that generating equipment of electric suppliers utilizing wind turbines may be taxed at a rate or rates that exceeds the real estate rate, but does not exceed the personal property rate. The bill has an effective date of January 1, 2007.
Taxation of certified pollution control equipment and facilities; development of five-year plan. The Virginia Economic Development Partnership Authority, with other agencies, is required to prepare and execute a specific five-year plan to assist local governments that are dependent upon manufacturing facilities to diversity their economies. The bill also provides that certain certified pollution control equipment and facilities are exempt from state and local taxation, pursuant to Section 6 of Article X of the Constitution of Virginia.
P SB418
Cigarette tax; deduction of bad debts from taxes owed. Permits stamping agents to deduct from cigarette taxes owed the cost of the tax stamps on cigarettes they have sold but for which payment is uncollectible. This bill is identical to HB 612.
P SB463
Montgomery County; transient occupancy tax. Authorizes Montgomery County to impose a transient occupancy tax up to a rate of 5 percent. All revenues collected from that portion of the tax above 2 percent would be required to be spent on promoting tourism.
P SB468
Transient occupancy tax; Historic Triangle area. Eliminates the January 1, 2008, sunset date for the additional transient occupancy tax in the Counties of James City and York and makes other technical changes.
Sales and use tax; semiconductor production exemption. Provides a sales and use tax exemption for tangible personal property used in semiconductor manufacturing as well as other semiconductor equipment. This bill is identical to HB 530.
P SB506
Coal and Gas Road Improvement Fund. Allows localities that comprise the Virginia Coalfield Economic Development Authority to use revenue from their Coal and Gas Road Improvement Fund to repair or enhance existing water and sewer systems and lines to meet the needs of the public.
Tangible personal property; classifications. Establishes a separate class of tangible personal property for aircraft having a registered empty gross weight equal to or greater than 20,000 pounds that are not owned or operated by scheduled air carriers recognized under federal law. This bill is identical to HB 862.
Local license tax. Authorizes localities to establish a license application date between March 1 and May 1 and they must do so no later than the 2007 license year. Under current law, the license application date is March 1. This bill is identical to HB 869.
Sales and use tax exemption; school-related items. Provides a sales and use tax exemption, beginning in 2006, for certain school-related items purchased during a specific three-day period during August each year. The exempt items are (i) school supplies, where the selling price of each item is $20 or less, and (ii) footwear and clothing where the selling price of each item is $100 or less. The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchaser of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner. This bill is identical to HB 532.
Tax administration; amended return filing after change in another state. Allows taxpayers one year from the final determination of a change made by any other state to file an amended return in the Commonwealth; requires taxpayers to file amended returns to report a reduction in credit for taxes paid to another state due to changes made by the other state; and reconciles inconsistent statutory periods for filing amended returns resulting from federal changes.
Local license tax; retailers of certain fuels. Provides that when the Department of Mines, Minerals and Energy (DMME) determines that the weekly U.S. Retail gasoline price has increased by 20 percent or more in one week, and does not fall below that rate for 28 days, then the gross receipts taxes on fuel sales of a gas retailer made in the following licensing year shall not exceed 110 percent of the gross receipt taxes on fuel sales made in the license year of the increase. DMME must report its findings no later than January 30 each year to VML, VACO and the Virginia Petroleum, Convenience and Grocery Association.
Sales and use tax exemption; semiconductor wafers. Exempts from sales and use tax semiconductor wafers for use or consumption by a semiconductor manufacturer.
Entitlement to certain sales tax revenues. Entitles the City of Norfolk to all sales tax revenues generated by transactions taking place in certain public facilities to pay the cost of bonds issued to pay for such public facilities. Such entitlement shall continue for the lifetime of such bonds, which entitlement shall not exceed 35 years, and all such sales tax revenues shall be applied to repayment of the bonds. The bill also clarifies that a public facility does not include any residential condominiums, town homes, or residential units.
Job creation tax credits. Adds to the type of jobs for which the job creation tax credit can be taken, the manufacturing of components that produce, store, and dispense hydrogen as a vehicle fuel. The sunset clause applicable to this section is extended from December 31, 2006, to December 31, 2011.
Retail sales and use tax; commercial and industrial exemptions. Makes permanent certain retail sales and use tax exemptions related to the refining and processing of oil and natural gas and extend the sunset for exemption related to extraction and processing of natural gas and oil from July 1, 2006, to July 1, 2011.
Tobacco taxes; roll-your-own tobacco. Makes roll-your-own tobacco subject to the cigarette excise tax instead of the tobacco products tax. The cigarette tax on roll-your-own tobacco, however, would be imposed at the same rate and in the same manner as the tobacco products tax. Distributors of roll-your-own tobacco would be considered cigarette stamping agents and would be required to prepare an invoice describing the manufacturer, brand, and quantity in ounces of roll-your-own tobacco included in each shipment to dealers located within the Commonwealth. A copy of the invoice would be attached to the shipment and would be deemed to be the cigarette revenue stamp. Accordingly, Nonparticipating Manufacturers (NPMs) would be required to include sales of roll-your-own tobacco when determining their required annual escrow deposit. The bill is effective January 1, 2007.
Real estate reassessment; notice. Requires localities to add onto the notice to taxpayers of real estate reassessments the amount of the immediately prior assessment amount, and if the tax rate that will apply to the new assessed value has been established, then the notice shall include such rate, the total amount of the new tax levy, and the percentage change in the new tax levy from the immediately prior one. If the tax rate that will apply to the new assessed value has not been established, then the notice shall include the time and place of the next meeting of the local governing body at which public testimony will be accepted on any real estate tax rate changes. Finally, if such meeting is more than 60 days from the date of the reassessment notice, the notice will include information about when the date of the meeting will be set and where it will be publicized.
Sales and use tax exemption; school supplies, clothing, and footwear. Provides a sales and use tax exemption for certain school supplies, clothing, and footwear purchased during a four-day period each year beginning on the first Thursday in August, beginning in 2006. The exempt items are the following: 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 bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchasers of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner. This bill was incorporated into HB 532.
Estate tax. Conforms the amount of Virginia estate tax due from an estate to the maximum amount of the federal estate tax credit for state estate taxes, as permitted under federal estate tax law, as such law shall be amended from time to time. Under current law the amount of Virginia estate tax cannot be less than the federal credit under federal law as such law existed on January 1, 1978. The bill incorporates HBs 516 and 519.
F HB85
Sales and use tax revenue dedicated to the Transportation Trust Fund. Increases the amount of sales and use tax revenue dedicated to the Transportation Trust Fund from an amount generated by a one-half percent sales and use tax, to an amount generated by a 1 percent sales and use tax.
F HB86
Individual income tax; personal exemption amount. Increases the personal exemption amount for an individual from $900 to $1,000 for taxable years beginning on or after January 1, 2006.
F HB87
Real estate tax exemptions for the elderly and handicapped. Adds Stafford County, Fauquier County, and Clarke County to the list of localities in the Northern Virginia area that may use higher income levels and total net worth amounts in determining eligibility for real estate tax exemptions for the elderly and handicapped. This bill was incorporated into HB 121.
Coalfield employment enhancement tax credit. Extends the sunset date for the credit from January 1, 2008, to January 1, 2015.
Motor vehicle sales and use tax; basis of tax. Allows the DMV Commissioner to collect the motor vehicle sales and use tax on the basis of the final sale price less any rebates given by the manufacturer or dealer, in the case of the sale or use of a new motor vehicle.
Sales and use tax revenue dedicated to the Transportation Trust Fund. Increases the amount of sales and use tax revenue dedicated to the Transportation Trust Fund from an amount generated by a 0.50 percent sales and use tax, to an amount generated by a 0.75 percent sales and use tax.
Sales tax exemption; energy efficient products. Provides a sales tax exemption for purchases made during the period October 5, 2006, through October 8, 2006, of certain energy-efficient products.
Sales and use tax exemption; school supplies, clothing and footwear, and computers. Provides a sales and use tax exemption, beginning in 2006, for certain school supplies, clothing and footwear, and computers purchased during a 10-day period each year beginning on the first Friday in August. The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchasers of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner. This bill was incorporated into HB 532.
F HB140
Personal Property Tax Relief. Reinstates the Personal Property Tax Relief Act of 1998 at 100 percent reimbursement for qualifying vehicles effective January 1, 2007.
Motor vehicle fuels sales tax. Makes the imposition of the 2 percent motor vehicle fuels sales tax optional for the localities in certain transportation districts. Under current law, the tax is imposed automatically in those districts.
Income tax; subtraction of federal, state, or local government employee retirement payments. Reduces taxable income by the amount of any federal, state, or local government employee retirement payments received.
Real estate tax; limitation on tax rate. Provides that localities must set real estate tax rates so that the total real estate tax revenue will not increase by more than 3 percent over the previous year's total real property tax levies with one exception. The exception would allow a locality to set its property tax rate at a rate not to exceed the rate of population growth plus the rate of inflation in the locality for the immediately preceding year, but in no event shall the rate be set at any amount that would produce more than 6 percent growth.
Transient occupancy tax; exemption. Exempts from local transient occupancy taxes rooms or spaces rented by any nonstock Virginia corporation whose primary activity is the operation of a lodging facility.
Sales and use tax and motor vehicle sales and use tax; definition of sale price. Reduces the sale price (i) for determining general sales and use tax by any cash rebates and (ii) for determining motor vehicle sales and use tax by any cash discount allowed and taken; any finance charges, carrying charges, service charges or interest from credit extended on sales of tangible personal property under conditional sale contracts or other conditional contracts providing for deferred payments of the purchase price; any separately stated local property taxes collected; or any cash rebates. Where used articles are taken in trade, or in a series of trades as a credit or part payment on the sale of new or used articles, the tax levied by this chapter shall be paid on the net difference between the sales price of the new or used articles and the credit for the used articles. The reductions in sale price for the motor vehicle sales and use tax (other than cash rebates) are the same reductions allowed for general sales and use tax under current law.
Real property tax exemption; elderly and disabled. For localities in Northern Virginia, increases from $340,000 to $400,000 the maximum financial worth cap a locality may use in providing real estate tax exemptions to the elderly or disabled.
Income tax; employer-provided commuting benefits tax credit. Grants an income tax credit for taxable years beginning on or after January 1, 2007, to employers who pay employees' eligible commuting expenses, which include multiple-passenger vehicle and mass transit transportation costs, parking fees, and showers and bike rack installation costs. The credit equals 40 percent of such costs, not to exceed $240 per employee each year. Unused credits may be carried over for five years.
Income tax; age deduction. Provides that those taxpayers born after January 1, 1939, and no later than January 1, 1942, who are subject to the means test at age 65 with regard to the $12,000 deduction are allowed a deduction of no less than $6,000.
Individual income tax; senior citizen tax relief. Provides for indexing the $12,000 and $6,000 age deduction amounts based on the Consumer Price Index for All Urban Consumers, for taxable years beginning on or after January 1, 2007.
Income tax; toll payment tax credit. Provides a tax credit against income tax for taxpayers making electronic toll collection payments, such as Smart Tag, in an amount equal to 10 percent of the total amount paid annually for tolls on Virginia highways, for taxable years beginning on and after January 1, 2007.
Real property tax exemption; elderly and disabled. For localities in Northern Virginia, increases from $340,000 to $540,000 the maximum financial worth cap a locality may impose in providing real estate tax exemptions to the elderly or disabled. This bill was incorporated into HB 121.
F HB315
Real estate tax; limitation on tax rate. Provides that the total tax revenue in a locality may not exceed 105 percent of the total tax revenue in the locality in the immediately prior year unless approved by at least a two-thirds majority vote of the local governing body.
F HB319
Personal property tax; valuation of automobiles. Requires that automobiles be valued for personal property tax purposes according to the National Automobile Dealers Association Used Car Pricing Guide or the Kelley Blue Book, whichever reports a lower value.
Sales and use tax exemption; funeral expenses. Provides a sales and use tax exemption for the first $2500 in funeral expenses that are otherwise taxable.
Sales and use tax exemption; Energy Star certified products. Exempts certain energy-efficient products from sales and use tax. This bill was incorporated into HB 130.
F HB394
Income tax; tax credit for low-income renters. Provides an income tax credit for taxable years beginning on or after January 1, 2007, for certain low-income individuals and persons filing joint returns in an amount equal to 25 percent of their annual housing rental expenses up to an amount equal to 6 percent of the federal poverty guidelines.
F HB395
Cigarette tax. Increases the cigarette tax rate from $0.30 per pack to $0.80 per pack.
F HB410
Recordation tax; distribution for transportation. Provides for the distribution of excess recordation tax revenues to the Commonwealth Transportation Board for use throughout the Commonwealth for (i) projects that will reduce poor air quality, (ii) projects that will reduce traffic congestion, and (iii) projects that will aid the safety of motorists or pedestrians.
F HB422
Individual income tax; personal exemption amount. Increases the personal exemption amount for an individual from $900 to $1,000 for taxable years beginning on or after January 1, 2007.
Sales and use tax; distribution to certain localities. Distributes certain sales and use tax revenues to localities that have experienced a reduction in machinery and tools tax revenues of at least 50 percent during the two most recently ended fiscal years, excluding any reduction due to a decrease in the tax rate. The annual amount to be distributed shall be the lesser of one-half of the annual amount distributed to the county, city, or town pursuant to § 58.1-605, or one-half of the two-year reduction in the machinery and tools tax revenues for the locality. Such annual payments shall continue until the fiscal year immediately following two successive fiscal years in which the county's, city's, or town's total machinery and tools tax revenues for those two fiscal years equal or exceed 80 percent of the amount of such revenues collected in the two-year period immediately preceding the two fiscal years in which there was at least a 50 percent reduction in such revenues.
Tax administration; filing of tax returns by military personnel in combat zones. Prohibits the Tax Commissioner from imposing interest or penalties and from performing collection actions with regard to tax returns of military personnel serving in combat zones, for taxable years beginning on or after January 1, 2006.
Coalfield employment enhancement tax credit. Eliminates the restriction for tax credit being claimed under both the coalfield employment enhancement tax credit and the coal employment and production incentive tax credit for the same ton of coal.
Income tax; land preservation tax credits. Expands the land preservation tax credit by removing the $100,000 annual credit limit that a taxpayer may take for qualified donations of conservation easements and putting a $2.5 million or 50 percent of the fair market value, whichever is less, cap on each donated easement. However, the credit may exceed $2.5 million, up to 50 percent of the fair market value of the donated interest if (i) the taxpayer has submitted two qualified appraisals from two different qualified appraisers, and (ii) the Secretary of Natural Resources, who has the sole discretion, has determined that the qualified donation provides exceptional benefit to the Commonwealth by meeting standards adopted by the Virginia Land Conservation Foundation. It also requires the filing of a statement for less-than-fee interest donations that describes how such interest meets the requirements of IRC § 170(h). It also adds, as qualified donations, easements on historic buildings or a complex of historic buildings or a portion of such buildings if the building is listed on the Virginia Landmarks Register, provided there are restrictions on the exterior surfaces of the building or complex of buildings. A fee of 1 percent of the value of the donated interest, or $5,000, whichever is less, is imposed on any taxpayer who transfers unused tax credits.
Income tax; land preservation tax credits. Removes the $100,000 annual credit limit that a taxpayer may take for qualified donations of conservation easements and requires the filing of a statement for less-than-fee interest donations that describes how such interest meets the requirements of IRC § 170(h). It also adds as qualified donations easements on historic buildings or a complex of historic buildings or a portion of such buildings if the building is listed on the Virginia Landmarks Register, provided there are restrictions on the exterior surfaces of the building or complex of buildings. A fee of 1 percent of the value of the donated interest, or $5,000, whichever is less, is imposed on any taxpayer who transfers unused tax credits. It also allows the tax credits to pass at the death of the taxpayer to his estate and allows the estate to transfer unused tax credits.
F HB477
Motor vehicle registration and driver's license application contents. Adds language to motor vehicle registration forms and driver's license application forms that allows such registrants and applicants to contribute $1 for Prevent Blindness Virginia, a nonprofit organization that provides driver education, vision screening and vision screening training.
Income tax; age deduction. Reinstates the $6,000 and $12,000 deduction for taxpayers aged 62 through 64, and 65 and older, respectively, for taxable years beginning on and after January 1, 2006. However, individuals with taxable income exceeding $150,000 and married couples with taxable income exceeding $250,000 are not eligible for the deduction.
Sales and use tax exemption; school supplies, clothing and footwear, and computers. Provides a sales and use tax exemption for certain school supplies, clothing and footwear, and computers purchased during a seven-day period each year beginning on the Tuesday prior to the first Monday in September, beginning in 2006. The exempt items are: each article of school supplies with a selling price of $20 or less, each article of clothing or footwear with a selling price of $100 or less, and each article of computers or related peripheral equipment with a selling price of $1,500 or less. The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchasers of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner. This bill was incorporated into HB 532.
Income tax; teleworking tax credit. Grants a tax credit to certain qualified employers for eligible costs incurred to provide an employee with the ability to telework, for taxable years beginning on or after January 1, 2007. The credit equals 75 percent of the cost of the initial set-up to enable teleworking for an employee who works five or more days weekly. The credit per employee is limited to $1,000 annually.
Insurance premiums license tax; disposition of motor vehicle insurance license tax. Requires the revenues generated by the license tax on motor vehicle insurance companies to be credited to the Transportation Trust Fund when deposited in the state treasury.
Commonwealth Transportation Investment Fund. Creates the Commonwealth Transportation Investment Fund and dedicates to it one-third of all insurance license tax revenues, to be used for transportation projects throughout the Commonwealth. The Commonwealth Transportation Board is authorized to issue revenue bonds provided that the total face amount of bonds issued in any fiscal year shall not exceed two-thirds of the amount of insurance license tax revenues estimated to be dedicated in that year. The proceeds of the bonds shall be allocated among various transportation modes according to the formula under current law. All other revenues in the Fund not needed to pay debt service on the bonds, are allocated for transportation construction projects among the several highway systems of the Commonwealth according to the formula under current law. The particular transportation projects to be funded shall be determined by the Commonwealth Transportation Board. The bill also increases from $800 million to $1.2 billion the amount of Commonwealth of Virginia Federal Highway Reimbursement Anticipation Notes that were authorized in 2000 and dedicated to transportation projects, and makes other changes to transportation projects that were authorized in 2000.
Sales and use tax exemption; clothing, school supplies, computers, and sport or recreational equipment. Provides a sales and use tax exemption for purchases made during a three-day period each year beginning the first Friday in August of the following items: (i) clothing with a sales price of $100 or less per item; (ii) school supplies with a sales price of $100 or less per item; (iii) computers with a sales price of $3,500 or less per item; and (iv) sport or recreational equipment with a sales price of $50 or less per item. The exemption does not apply to sales of items for use in a trade or business. The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchasers of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner. This bill was incorporated into HB 532.
F HB516
Estate tax. Gradually phases out the Virginia estate tax by 25 percent per year over a four-year period. This bill was incorporated into HB 40.
Estate tax. Exempts from the estate tax (i) all estates where the majority of assets are an interest in a closely held business, including working farms, and (ii) all estates where the gross estate is worth $10 million or less. This bill was incorporated into HB 40.
F HB528
Sales and use tax holiday for clothing and computers. Establishes a sales and use tax exemption during the period from August 23 through August 27, 2006, and each such time period thereafter, for "clothing and footwear" costing less than $200 per article; "computer systems" costing less than $1,250; and "computers," "computer hardware," and "computer software" costing less than $500. The bill also requires the Department of Taxation to promulgate regulations that implement the temporary exemption program by August 1, 2006. This bill was incorporated into HB 532.
Income tax; land preservation tax credit. Requires that the value of the donated interest in land (i) be calculated using an amount that does not exceed the assessed value of the property for purposes of local property tax, and (ii) not exceed such assessed value. If the most recent general reassessment of property in the locality occurred more than two years before the conveyance, the assessed value shall be adjusted by dividing the assessed value by the median ratio for the locality from the most recent Assessment/Sales Ratio Study published by the Department of Taxation. This bill was incorporated into HB 450.
F HB536
Real property taxes; exemption for certain elderly or disabled persons. Increases, and makes uniform statewide, the maximum income and net worth amounts of elderly or disabled persons that localities may use in providing real estate tax exemptions for such persons (i) from $50,000 to $75,000 for annual income, and (ii) from $200,000 to $350,000 for net worth. The net worth cap is also increased by increasing from 10 to 20 the number of acres on which the person's home is located that can be excluded in calculating net worth. The bill states that an emergency exists and is effective upon passage. This bill was incorporated into HB 121.
Taxation; extend statute of limitations for refunds. Extends the statute of limitations from 3 to 10 years for taxpayers to file amended returns in order to get a refund. The bill also deletes obsolete language.
Real property tax exemption; elderly and disabled. For localities in Northern Virginia, increases from $340,000 to $500,000 the maximum financial worth cap a locality may impose in providing real estate tax exemptions to the elderly or disabled. This bill was incorporated into HB 121.
F HB578
Local piggyback income tax and personal property tax. Allows localities to impose a local income tax at a rate of either 0.50 percent or 1 percent upon the Virginia taxable income of individuals, trusts, estates, and corporations provided the personal property tax rate does not exceed $0.01 per $100 of value on personally owned motor vehicles. The Tax Commissioner collects the tax and returns it to localities based on taxpayers' residences. A new classification for personal property tax purposes is created for motor vehicles used for nonbusiness purposes. The provisions of the act will take effect January 1, 2007.
F HB579
Income tax; deduction for individuals of incarcerated family members. Provides a $1,000 deduction to taxpayers who have a parent, spouse, or child who normally resides in the same home but who is incarcerated in a Virginia correctional facility.
Motor fuel tax; rate increase. Increases the tax on gasoline, diesel fuel, and alternative fuel by $0.085 per gallon, increases the motor carrier road tax by an equivalent of $0.085 per gallon of fuel used in the Commonwealth, and increases the alternative use fee for certain motor carriers from $100 to $150 (the fee is an alternative to paying the motor carrier road tax). All motor fuels taxes will be indexed every two years beginning July 1, 2007, by an amount equal to the percentage change in the U.S. Department of Labor's Producer Price Index for Highway and Street Construction. The revenue generated is used for transportation purposes as required by existing law.
Income tax; energy efficiency tax credit. Grants an income tax deduction for taxable years beginning on or after January 1, 2006, to individuals who purchase energy efficient equipment for their homes. The amount of the deduction equals 50 percent of such equipment expenditures, but not more than $5,000 total.
Recordation tax; dedicated for transportation. Dedicates recordation tax revenues not already dedicated, to the Commonwealth Transportation Board for transportation projects in localities throughout the Commonwealth on a pro rata basis pursuant to the amount of the recordation tax collected in each locality.
F HB660
Insurance license tax; dedication for transportation. Dedicates all insurance license tax revenues to be used for transportation projects throughout the Commonwealth.
F HB661
F HB678
Publications tax; Water Quality Improvement Fund. Creates a tax to be imposed on newspapers, magazines, newsletters, or other publications at the rate of $0.01 on every such publication delivered and sold in the Commonwealth. The revenue generated shall be deposited into the Water Quality Improvement Fund.
F HB708
Sales and use tax exemption; school-related items. Provides a sales and use tax exemption for certain school-related items purchased during a specific one-week period during the end of August each year, beginning in 2006. The exempt items are: school supplies, footwear, and clothing when the selling price of each item is $100 or less. The bill also authorizes dealers to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchaser of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner. This bill was incorporated into HB 532.
F HB753
Income tax; income tax credit for low-income taxpayers. Replaces the current income tax credit for low-income taxpayers with a refundable credit equal to 10 percent of the federal earned income tax credit, effective for taxable years beginning on or after January 1, 2006.
F HB770
Income tax; distribution of revenues to localities. Requires the transfer of 1 percent of individual income tax revenues to localities in 2006, and the amount increases 1 percent each year until it reaches a maximum of 5 percent for 2010 and thereafter. The revenues are distributed to counties and cities as follows: (i) 50 percent based on the relative share of the total state income tax paid by taxpayers filing returns in each locality, (ii) 40 percent based on where wages are earned, and (iii) 10 percent divided equally among all counties and cities.
F HB797
Commissioners of the revenue; certain DMV duties. Requires local commissioners of the revenue to participate in the Department of Motor Vehicles Select program through which he would perform select DMV transactions including titling, registration, plate issuance, address changes, providing copies of DMV records, and Motor Voter registration.
Income tax; toll payment tax credit. Provides a tax credit against income tax, for taxpayers owning and operating commercial vehicles, in an amount equal to 25 percent of the total amount paid for tolls on Virginia highways, for taxable years beginning on and after January 1, 2007.
F HB835
Income tax credit; veterinarian pro bono tax credit. Allows a nonrefundable credit to veterinarians of $40 for each spaying, neutering or euthanasia procedure performed at no cost on animals from public pounds and 501 (c) (3) shelters.
F HB850
Income tax; revenue surplus tax credit. Allows a tax credit of surplus revenues for individuals after contributions have been determined for the Revenue Stabilization Fund and the Water Quality Improvement Fund.
Individual income tax credit and sales and use tax exemption; certain energy efficient products. Provides, retroactive to January 1, 2005, (i) a sales and use tax exemption for the purchase of solar energy systems and other energy efficient products and (ii) an individual income tax credit equal to 60 percent of the expenses incurred for materials and labor of installing a solar energy system, not to exceed $8,000. This bill was incorporated into HB 1153.
Real estate tax; limitation on tax rate. Provides that an annual assessment, biennial assessment or general reassessment of real property may not result in more than a five percent increase in the total real estate tax levies for a county, city or town, with one exception. The bill also provides that a county, city or town may not set its real property tax rate for any tax year at a rate that would produce more than 105 percent of the previous year's total real property tax levies for such county, city or town, with one exception. The exception would allow a locality to set its property tax rate at a rate not to exceed the rate of population growth plus the rate of inflation in the locality for the immediately preceding year. The average tax increase on individuals would not exceed five percent. However, some taxpayers could be above the average while others could fall below the average. Under current law, (i) the annual growth rate in a locality's total real estate taxes from an annual assessment, biennial assessment or general reassessment is not capped, provided the locality holds a public hearing in regard to its real property tax rate; and (ii) there is no cap on real property tax rates.
F HB973
Sales and use tax; increase in certain localities. Imposes an additional 0.25 percent sales and use tax in Arlington County, Fairfax County, the City of Alexandria, the City of Fairfax, and the City of Falls Church if approved by ordinance by the governing bodies of those localities whose population comprise at least 90 percent of the population in all of such localities. The bill is effective the first day of the month following 60 days from the date of such approval. The revenue is to be used solely for each locality's financial obligations to the Washington Metropolitan Area Transit Authority.
Local food and beverage tax; Floyd County. Adds Floyd County to the list of counties that may impose the local food and beverage tax without approval at referendum, provided that a public hearing is held and that an ordinance passed the governing body by unanimous vote.
Real property assessments; consideration of affordable housing limitations. Requires local tax assessors to consider the impact of legally imposed rent restrictions on real property operated as affordable housing in determining the fair market value of such property. The bill also provides that federal and state income tax credits with respect to real property shall not be considered real property or income attributable to real property. This bill was incorporated into HB 1173.
F HB1098
Income tax; age deduction. Increases the amount of the married taxpayers' adjusted federal adjusted gross income from $75,000 to $100,000 for purposes of the $1 for $1 reduction of the age deduction for taxable years beginning on or after January 1, 2006.
F HB1113
Income tax credit; veterinarian pro bono tax credit. Allows a nonrefundable credit to veterinarians of $40 for each spaying, neutering or euthanasia procedure performed at no cost on animals from public pounds and 501 (c) (3) shelters, for taxable years beginning on or after January 1, 2007.
F HB1114
Income tax; animal adoption tax credit. Grants an income tax credit for taxable years beginning on or after January 1, 2007, to individuals for one-half of the adoption fees they pay when they adopt one or more animals from public pounds or charitable animal shelters. The amount of the credit may not exceed $25 per adoption.
F HB1124
Sales and use tax revenue; distribution to localities based on real estate tax revenue growth. Distributes sales and use tax revenue generated by a one-half percent sales and use tax among all counties and cities whose total real property tax revenues for the most recently ended fiscal year do not exceed the total real property tax revenues for the immediately preceding fiscal year by a rate that is more than the sum of the rate of the population growth plus the rate of inflation for the immediately preceding year.
F HB1125
Sales and use tax exemption; school-related items. Beginning in 2006, provides a sales and use tax exemption for certain school-related items purchased during a specific one-week period during the end of August each year. The exempt items are: (i) school supplies, footwear, and clothing where the selling price of each item is $100 or less; (ii) computer systems where the selling price for each system is $1,500 or less; and (iii) computers, computer hardware, computer software, and portable calculators where the selling price for each item is $500 or less. This bill was incorporated into HB 532.
Income tax; motion picture production company tax credit. Grants a tax credit against the individual and corporate income taxes, for taxable years beginning on or after January 1, 2007, for any motion picture production company that produces films in the Commonwealth. The credit is equal to 10 percent of the total aggregate payroll for residents employed in connection with such production when total production costs in Virginia are at least $300,000 but not more than $1 million. The credit rises to 20 percent of such payroll if the production costs in Virginia exceed $1 million. Any unused credit may be carried forward for 10 years.
F HB1128
State Lottery Department. Prohibits the State Lottery Department from paying fees in excess of $200,000 to any individual or entity for using copyrighted words, phrases, or any other material.
Income tax and insurance premiums tax; employer-provided commuting expenses tax credit. Grants an income or insurance premiums tax credit to employers in an amount equal to 50 percent of the eligible commuting expenses that they pay for their employees. The annual credit shall not exceed $600 per employee or the employer's tax liability, whichever is less, and shall be effective for tax years beginning on or after January 1, 2006.
Residential development impact fee assessments; adequate public facilities. Allows localities with a population of at least 80,000 and that has had an annual growth rate of at least one and one-quarter percent over the previous three years to adopt ordinances for the assessment of impact fees when certain public facilities are inadequate to support a proposed residential development. If the proposed development is for senior residents only, then impact fees may be assessed in relation to the adequacy of public safety, or public sewer or water facilities. For all other proposed residential developments, the impact fees may be assessed in relation to the adequacy of education, transportation, or public water or sewer needs. Such fees shall be a pro rata share of the costs of reasonable and necessary capital improvements attributable to the proposed development. Prior to any impact fee assessment, the locality must identify the particular public facility needs in its comprehensive plan, and must have in place a capital improvement program that provides a reasonable basis for determining the extent or level of inadequacy of such facilities in the area of the proposed development. If the locality does not apply impact fees paid by a developer to the capital project that served as the basis for such assessment within six years of collection, then the developer may seek a writ of mandamus to compel the locality to do so.
F HB1206
Sales and use tax exemption; school supplies. Provides a sales and use tax exemption for school supplies that cost $100 or less per item and are purchased during a specific three-day period in the first part of August each year, beginning in 2006. This bill was incorporated into HB 532.
F HB1215
Local cigarette tax. Authorizes Isle of Wight County to impose a cigarette tax not to exceed the greater of $0.05 per pack or the amount of the state cigarette tax.
F HB1298
Real estate reassessment; notice. Requires localities to add onto the notice to taxpayers of real estate reassessments (i) the amount of the immediately prior assessment amount, and (ii) the time and place of the next meeting of the local governing body at which public testimony will be accepted on any real estate tax rate changes. This bill was incorporated into HB 491.
F HB1364
Business, professional and occupational license (BPOL) tax; media exemption. Repeals the BPOL tax exemption for newspapers, magazines, newsletters or other publications issued daily or regularly at average intervals not exceeding three months, as well as for radio and television broadcasting stations.
F HB1367
Local telecommunications tax; Town of Abingdon. Permits the Town of Abingdon to impose the local telecommunications tax and prohibits Washington County from imposing the tax in Abingdon during any time that Abingdon imposes the tax.
Car tax relief. Removes the cap on the overall amount of car tax relief beginning January 1, 2007, and gradually increases the amount of car tax relief to 100 percent of the reimbursable amount for qualifying vehicles over a six-year period. The bill is effective January 1, 2007.
Transportation Trust Fund; dedication of certain recordation tax revenue. Dedicates to the Transportation Trust Fund the additional recordation tax revenue generated by the recordation tax increase enacted during the 2004 Special Session I. This bill was incorporated into HB 1257.
F HB1444
Real property tax exemption for the elderly and disabled; City of Norfolk. Increases the financial worth cap and total income caps that the City of Norfolk may impose in providing real estate tax exemptions to the elderly or disabled. This bill was incorporated into HB 121.
Income tax; deduction for licensed medical caregivers. Grants an income tax deduction in the amount of $10,000 for licensed medical caregivers who provide medical-related services to individuals in their homes.
Income tax; in-home health care tax credit. Provides an income tax credit for every individual taxpayer who pays medical and in-home care expenses for family members living with the taxpayer, for taxable years beginning on or after January 1, 2007. The amount of the credit is equal to the amount in excess of $10,000 paid for such expenses and that is not reimbursed.
Income tax; tax credit for waste motor oil/fluids reclamation systems. Adds waste motor oil/fluids reclamation systems to the current credit for waste motor oil burning equipment that a business purchases. The credit may not exceed $5,000 annually and the effective date for the purchase of reclamation systems is for taxable years beginning on or after January 1, 2007.
Income tax; career and technical education equipment tax credit. Provides a corporate and individual income tax credit for approved and accepted donations of career and technical equipment to Virginia's public school systems. The credit, available for taxable years beginning on or after January 1, 2007, will be 50 percent of the assessed value of the equipment but may not exceed that taxpayer's tax liability. It may be carried over for 5 years.
Sales and use tax; payments by certain vendors. Repeals, effective May 1, 2006, the requirement that certain vendors make an additional payment of sales and use tax to the Department of Taxation in June 2006. Under current law the requirement would be repealed effective August 1, 2006. The bill has an emergency clause.
Major business facility job tax credit. Provides that the state income tax credit for certain companies that create new jobs for qualified full-time employees shall apply when 25 or more new jobs are created in BRAC-impacted census tracts in the Commonwealth.
Motor fuel tax; increase. Increases the tax on gasoline, diesel fuel, and alternative fuel by $0.055 per gallon, increases the motor carrier road tax by an equivalent of $0.055 per gallon of fuel used in the Commonwealth, and increases the alternative use fee for certain motor carriers from $100 to $150 (the fee is an alternative to paying the motor carrier road tax). The revenue generated is used for transportation purposes as required by existing law.
Motor vehicle sales and use tax; increase. Increases the motor vehicle sales and use tax from 3 percent to 5 percent and dedicates the revenue generated for transportation purposes. The authority to impose the additional tax ceases on December 31 of any year in which any of the additional revenue is not used for transportation purposes.
Special assessments for land preservation. Provides that a local assessing office may find one of the following documents useful in making his determination as to whether certain real estate is devoted solely to agricultural or horticultural use: (i) the assigned USDA/ASCS farm number, and evidence of participating in a federal farm program, or (ii) federal tax forms (1040F) Farm Expenses and Income, (4835) Farm Rental Income and Expenses, or (1040E) Cash Rent for Agricultural Land, or (iii) a Conservation Farm Management Plan prepared by a professional, or (iv) documentation of gross sales averaging more than $5,000 annually over the previous three years.
Sales and use tax exemption; school-related items. Authorizes certain counties and cities by a majority vote of the local governing body to provide an exemption from their local sales and use tax for certain school-related items purchased during a specific one-week period during the end of August each year. The state sales and use tax also would not apply to such school-related items in participating counties and cities. The exempt items would be clothing and school supplies where the selling price of each item is $100 or less. To be eligible, a county or city must have a high unemployment rate and be contiguous to a state, including the District of Columbia, that has a sales tax holiday in effect. In addition, any county or city with a high unemployment rate that is contiguous to such counties and cities would also be eligible for the sales tax holiday. A high unemployment rate is defined as a 10-year average annual unemployment rate greater than 5 percent. The bill also authorizes dealers in participating counties and cities to absorb the sales and use tax on all other items sold during the same time period and thereby relieve the purchaser of the obligation to pay such tax. Dealers who absorb such taxes are liable for payment of the same to the Tax Commissioner.
F SB63
Grants and tax refunds for producing and using clean and efficient energy. Provides tax refunds and grant awards for using clean and efficient energy including (i) grant awards in the amount of 0.85 cents for each kilowatt of electricity produced by a corporation from certain renewable energy resources; (ii) grants to individuals and corporations equal to 15 percent of the cost incurred in installing photovoltaic property, solar water heating property, or wind-powered electrical generators (grants are limited to $2,000 for each system of photovoltaic property, $1,000 for each system of solar water heating property, and $1,000 for each system of wind-powered electrical generators); (iii) a refund of sales and use tax paid on certain appliances meeting energy star efficiency requirements developed by the federal government and for heat pumps, air conditioners, and natural gas water heaters meeting specified performance measures; and (iv) a refund of one-half of the sales and use tax paid on motor vehicles using clean fuel sources as a source of propulsion. Refunds of sales and use taxes on appliances, heat pumps, air conditioners, natural gas water heaters, and motor vehicles using clean fuel sources as a source of propulsion are limited to a maximum of $500 in tax paid per item. In addition, no person shall receive more than $5,000 in refunds in any calendar year for each of the appliances, heat pumps, air conditioners, natural gas water heaters, and motor vehicles covered under the bill. The tax refunds and grants programs sunset in 2011.
Sales tax on motor fuels. Increases from 2 percent to 4 percent the sales tax on fuels in every county or city situated in the Northern Virginia Transportation District. In the first full fiscal year of the tax increase such counties and cities would be required to reduce their real estate tax rates in order to reduce real estate tax revenues in the following fiscal year by the amount of incremental revenues generated by the sales tax increase. The reduction in real estate tax rates would be required only in the first fiscal year of the sales tax increase.
Income tax credit; production of electricity from renewable resources. Provides an individual and corporate income tax credit for producing electricity from renewable resources of energy. Tax credit would be allowed for electricity that is produced in the 10-year period beginning on the date that a qualified facility for producing electricity from renewable resources is placed in service. The credit amount would equal 0.85 cents for each kilowatt of electricity produced from renewable resources that is sold by the taxpayer to an unrelated person. The bill would be effective for taxable years beginning January 1, 2007.
Land preservation tax credit. The bill provides an aggregate limit of $600,000 or 50 percent of the fair market value in tax credit for each parcel of land donated under the Virginia Land Conservation Incentives Act of 1999, which limit includes any transfer of unused tax credits. Under the bill, the value of any improvement to land shall not be considered for purposes of valuing land donations for tax credit. The fair market of the land must not exceed the highest and best use for which the property is adaptable, and must be supported by market evidence. The bill would restrict tax credit to land or interest in land that (i) meets guidelines of objective criteria established by the Virginia Land Conservation Foundation or (ii) the Secretary of Natural Resources has otherwise determined provides exceptional benefit to the Commonwealth in cases that do not meet the objective criteria. The bill would permit only one transfer of unused tax credits associated with donated property and would prohibit nonprofit organizations from transferring any tax credit, and it would allow as a credit against the estate tax any unused credit held by the decedent of the estate at the time of his death. Land dedicated as open space within a residential or commercial development; as open space in any real estate development plan; or dedicated to fulfill density requirements to obtain approvals for zoning, subdivision, site plan, or building permits would not qualify for purposes of the tax credit. The bill provides that no more than one donation can be made from the same parcel of land during a 15-year period, unless there is no affiliation between the persons or entities who already have been allowed credit with respect to the parcel and the persons or entities seeking credit. In cases in which the fair market value of a donation of property is being contested, the burden of proof would be on the taxpayer to show there is a reasonable probability that (i) the property is physically adaptable for the highest and best use that is proposed in the appraisal and (ii) there is a need or demand for such use in the reasonably near future. In general, the provisions of the bill are applicable to conveyances of property made on or after July 1, 2006. This bill incorporates SB 403.
Sales and use tax exemption; commercial and industrial exemptions. Provides a sales and use tax exemption for personal property purchased by a contractor on or after July 1, 2006, and used solely in any construction project for a local school division.
Sales and use tax; dedication of portion of revenue to local transportation and education. Provides that 0.25 percent of the sales and use tax revenue shall be returned to the locality in which it was collected to be used for transportation, and that 0.25 percent of the sales and use tax revenue shall be returned to the locality in which it was collected to be used for education purposes.
Fair market value for real property valuations. Provides that the fair market value of real property shall be determined with regard to the percentage increase or decrease in the average sales price of real property that is sold in the same assessment area.
Estate tax. Conforms the amount of Virginia estate tax due from an estate to the maximum amount of the federal estate tax credit for state estate taxes, as permitted under federal estate tax law, as such law shall be amended from time to time. Under current law the amount of Virginia estate tax cannot be less than the federal credit under federal law as such law existed on January 1, 1978. This bill was incorporated into SB 504.
Corporate income taxes; charitable contributions for Hurricane Rita relief efforts. Expands the temporary suspension of limits on charitable deductions to cover donations made by corporations for Hurricane Rita relief efforts. A temporary suspension of limits on charitable deductions is in effect at the federal level for corporate donations for Hurricane Katrina relief efforts. This bill was incorporated into SB 69.
Education tax credits. Allows individuals and businesses to claim a tax credit on their Virginia income tax return for contributions to Department of Taxation-approved nonprofit foundations that provide financial assistance to public schools for capital projects or provide scholarships to students in the Commonwealth. The total amount of credits available in any given year is capped at $50 million. In addition, an individual taxpayer may claim a credit for $800, or $1,200 if filing jointly, for education expenses paid for a dependent who is a student.
F SB219
Reassessment of real property; publication of revenue-neutral tax rate. Requires a locality to calculate and publish in its budget a revenue-neutral tax rate in years in which real estate in the locality has been reassessed. The revenue-neutral tax rate is calculated for comparison purposes to demonstrate the tax rate that would be required to produce the same amount of revenue in the next fiscal year as if real estate had not been reassessed.
F SB226
Sales tax on food. Repeals provisions relating to the rate of the state sales tax on food.
Machinery and tools tax; method of valuation. Requires machinery and tools that are placed in service on or after July 1, 2006, to be valued at their depreciated basis for federal income tax purposes if the owner has depreciated their value pursuant to the Internal Revenue Code. Such machinery and tools that were placed in service prior to July 1, 2006, will be valued commencing in 2010 at their depreciated basis for federal income tax purposes, and between 2006 and 2010 the valuation will be determined by a phased-in blending of the value determined by the method in effect on January 1, 2006, and by its depreciated basis for federal income tax purposes.
Virginia College Savings Plan; income tax deductions and sales of prepaid tuition contracts. Increases the income tax deduction for payments under prepaid tuition contracts and contributions to savings trust accounts to $3,000 per contract or account beginning January 1, 2006, and to $4,000 per contract or account beginning January 1, 2008. Under current law, the annual deduction may not exceed $2,000 per prepaid tuition contract or savings trust account. The bill provides that the Board of the Virginia College Savings Plan shall not enter into any prepaid tuition contract on or after July 1, 2008.
Sales and use tax; increase in certain localities. Imposes an additional 0.25 percent sales and use tax in Arlington County, Fairfax County, the City of Alexandria, the City of Fairfax, and the City of Falls Church if approved by ordinance by the governing bodies of those localities whose population comprise at least 90 percent of the population in all of such localities. The bill is effective the first day of the month following 60 days from the date of such approval. The revenue is to be used solely for each locality's financial obligations to the Washington Metropolitan Area Transit Authority. This bill is contingent on matching federal funds being appropriated and distributed to the Washington Metropolitan Area Transit Authority.
Grants and tax refunds and exemptions for producing and using clean and efficient energy. Provides tax refunds and grant awards for using clean and efficient energy including (i) grant awards in the amount of 0.85 cents for each kilowatt hour of electricity produced by a corporation from certain renewable energy resources; (ii) grants to individuals and corporations equal to 15 percent of the cost incurred in installing photovoltaic property, solar water heating property, or wind-powered electrical generators (grants are limited to $2,000 for each system of photovoltaic property, $1,000 for each system of solar water heating property, and $1,000 for each system of wind-powered electrical generators); (iii) a sales and use tax exemption for certain energy efficient products that have been awarded the energy star certification mark based on requirements developed by the U.S. Environmental Protection Agency and the U.S. Department of Energy; and (iv) a refund of one-half of the sales and use tax paid on motor vehicles using clean fuel sources as a source of propulsion. Refunds of the sales and use tax on motor vehicles using clean fuel sources as a source of propulsion are limited to a maximum of $500 in tax paid per item. The tax refunds and grants programs sunset in 2011.
F SB276
Income tax; different tax rate on income derived from sale of certain real estate. Provides for the imposition of a 2.3 percent tax rate on the taxable proceeds from a sale of an apartment building or complex to its tenant organization or to a nonprofit organization, effective for taxable years beginning on and after January 1, 2007.
Individual income tax; refund checkoff for Military Family Relief Fund of Virginia. Provides an income tax refund checkoff to individuals who want to contribute part or all of their income tax refund or an additional contribution to the Military Family Relief Fund of Virginia. The fund will be used by the Adjutant General of the National Guard to provide monetary grants to National Guard members and reservists who are called to either state or federal active duty. The Adjutant General is responsible for developing and publishing criteria and eligibility requirements for National Guard members and reservists to receive the grants or loans. This bill was incorporated into SB 139.
F SB403
Land preservation tax credit. The bill provides an aggregate limit of $600,000 in tax credit for each parcel of land donated under the Virginia Land Conservation Incentives Act of 1999, which limit includes any transfer of unused tax credits. The bill provides that no more than one donation can be made from the same parcel of land during a 15-year period, unless there is no affiliation between the persons or entities who already have been allowed credit with respect to the parcel and the persons or entities seeking credit. For donations of property made on or after January 1, 2007, the bill would require that the donation be reviewed by a licensed reviewer for purposes of determining whether or not the donation is in compliance with standards promulgated by the Department of Taxation. No credit would be allowed for any donation made on or after such date unless the licensed reviewer certifies compliance, and the donation is subsequently registered with the Department. The Department would issue licenses to qualified applicants seeking to become licensed reviewers. This bill was incorporated into SB 93.
F SB504
Estate tax. Provides that for deaths occurring on or after December 31, 2006, a tax in the amount of the federal credit shall be imposed on the taxable estate of a resident whose gross estate exceeds $10 million. However, the tax will not be imposed on an estate if the majority of the assets are an interest in a closely-held business or a working farm.
Neighborhood Assistance Act. Makes several changes to the program including (i) increasing the annual cap for tax credits allowed under the program from $8 million to $12 million, (ii) providing that $1 million of the cap increase would be dedicated for education programs and $3 million for providing grants to private schools for students with disabilities, and (iii) reducing the tax credit percentage for donations made by corporations and individuals from 45 percent to 40 percent along with eliminating the restriction placed upon individuals from claiming a tax credit for the donation if a charitable contribution deduction is also taken. The Department of Education would administer the Schools for Students with Disabilities Fund from which grants would be made to private schools for students with disabilities. The Department would be required to establish an application process for such schools seeking grants from the Fund. The Department would review the application and make a determination of whether to award a grant, based in part on the intended use of grant moneys by the applicant. The Fund would be funded from monetary donations for which the Department would allocate the annual $3 million in tax credits. The Board of Education would be required to establish regulations for the grants program, including regulations for procedures to allocate the $3 million in tax credits in fiscal years in which more than $3 million in monetary donations were made to the Fund.
Sales tax exemption; mixed use developments that include affordable housing. Entitles a locality or a local redevelopment authority to the sales tax revenues generated on the premises of a mixed-use development that incorporates residential units, provided that at least 20 percent of the residential units are used for affordable housing. The mixed-use development would have to be certified by the Department of Housing and Community Development as a qualifying project. The sales tax revenues would be used to service the payments on obligations issued by the locality or the redevelopment authority for the mixed-use development. The entitlement to the sales tax revenues would not exceed 35 years. The obligations would have to be issued by July 1, 2010.
F SB595
Sales and use tax; refund for exempted entities. Allows nonprofit entities to apply for a refund of the sales and use tax paid on purchases after January 1, 2007, instead of exempting such entities from paying the tax at the time of purchase.
F SB661
Motor fuels taxes; elimination of certain refunds. Eliminates the current refund of fuels taxes for fuels used in operating or propelling recreational or pleasure watercraft. All revenues attributable to the repeal of the refund would be deposited into the Game Protection Fund to be used for the direct benefit of the boating public.
Funding of transportation in the Commonwealth. Provides several mechanisms for funding transportation in the Commonwealth. The bill would provide that all moneys credited to specified transportation-related funds shall be solely used for the purposes set forth therein relating to the funding and maintenance of highways (including access roads and bikeways adjacent thereto), public transportation, congestion mitigation, railways, seaports, and airports; making payments on bonds and obligations related to funding transportation projects; or making loans to finance transportation projects. The bill would raise new revenues for transportation by (i) imposing an additional $200 fee upon certain convictions relating to violations of Virginia's driving laws; (ii) imposing annually additional fees on any driver with a driver's record having a balance of 8 or more demerit points; (iii) increasing motor vehicle registration fees by $10 for all vehicles and doubling the gross weight registration fee for vehicles weighing more than 10,000 pounds; (iv) increasing current liquidated damages for violations of any weight limit imposed under law or for violations of any weight limit included in a permit that has been issued; (v) imposing additional liquidated damages of $20 for every violation of any weight limit imposed under law or any weight limit included in a permit that has been issued; (vi) increasing the state grantor's tax to 30 cents for each $100 of value with the revenues from the increase in the tax distributed to the respective locality and required to be used for local or regional transportation projects; (vii) authorizing local governments to impose a local grantor's tax at the rate of 10 cents for each $100 of value with the revenues to be used for local or regional transportation projects; (viii) increasing the motor fuels tax on diesel fuel to 17.5 cents per gallon (the current rate of the motor fuels tax on gasoline and gasohol); (ix) imposing a 5 percent tax on motor fuels that would be based on the statewide average retail price of a gallon of self-serve unleaded regular gasoline over rolling six-month periods and that would be imposed at a cents per gallon rate; and (x) increasing the motor vehicle sales and use tax from 3 percent to 3.75 percent, phased-in over fiscal years 2007, 2008, and 2009. The bill would also dedicate for transportation purposes all insurance license tax revenues relating to automobile insurance policies. The bill would allow individuals to apply for a refund of any motor fuels tax paid in excess of 17.5 cents per gallon. Individuals would apply for a refund when the cumulative amount of the refund would exceed $5.
C HB67
State recordation tax; additional distribution to localities. Provides that 50 percent of the amount of state recordation taxes collected that are attributable to deeds and other instruments recorded shall be apportioned and distributed annually to or for each such county or city, beginning June 30, 2007. This provision applies to any county or city that has a Purchase of Development Rights program in effect, or has filed a statement of intent with the Virginia Department of Agriculture and Consumer Services that it will create such a program within three years or less from the date of such filing.
C HB155
C HB159
Virginia Technology and Biotechnology Investment Act created. Creates a research and development tax credit, not to exceed 50 percent of the tax liability due and not to exceed $500,000, for "technology" and "biotechnology" companies in Virginia and permits the credit to be carried over for up to 10 years, for taxable years beginning on and after January 1, 2006. The bill also creates a tax credit for individual taxpayers, estates, trusts, partnerships, and corporations that invest in technology or biotechnology companies. This tax credit, not to exceed 15 percent of the qualified investment and not to exceed $500,000, can be claimed for each of the five tax years beginning on and after January 1, 2006. In no event will more than $5 million in either of the credits be allowed annually. In addition, any unused tax credits can be carried over, in most circumstances, for up to 10 years. The bill permits technology or biotechnology companies to carry over net operating losses for up to 10 years. The bill creates a "corporation tax benefit certificate program" to be administered by the Innovative Technology Authority in cooperation with the Tax Department. Under the program, technology or biotechnology companies may transfer their unused but otherwise allowable research and development tax credits or net operating loss carryovers for a minimum of 75 cents on the dollar to another corporation taxpayer provided neither is an affiliate or a subsidiary of the other. The proceeds from the transfer can be used for a broad range of "costs" associated with operating a technology or biotechnology company.
C HB212
Sales and use tax exemption; nonprofit military organizations. Permits nonprofit organizations of past or present members of the Armed Forces of the United States to obtain a sales tax exemption from the Department of Taxation.
Car tax; dedicates a portion of income tax to localities. Repeals the car tax reimbursement program and replaces it by dedicating 17.5 percent of the state individual income tax collections to localities. The bill is effective January 1, 2009, but only if a constitutional amendment is ratified in November, 2008, exempting from taxation all motor vehicles used for nonbusiness purposes.
Recordation tax. Reduces the recordation tax rates to the levels prior to the increase imposed by Chapter 3 of the Acts of Assembly of 2004, Special Session I.
C HB529
Local meals tax. Prohibits a referendum on the local food and beverage tax from being held more than once every three years in the same county.
Motor fuels tax; refund for taxicabs. Clarifies the refund of fuels tax for taxicabs to include travel to medical facilities and public transportation facilities.
C HB836
Meals tax; referendum required in certain cities. Restricts the imposition in any city having a population of 400,000 or more of any new meals tax or tax rate increase without approval by referendum.
C HB874
Sales and use tax exemption; telecommunications companies. Restores the sales and use tax exemption for telecommunication companies that was eliminated in the 2004 Special Session I.
Motor vehicle sales and use tax; exemptions. Exempts from the motor vehicle sales and use tax cars with an EPA fuel efficiency rating of 50 mpg or greater, and SUV's with an EPA fuel efficiency rating of 30 mpg or greater.
Income tax; indexing rates, filing thresholds, personal exemptions, and standard deduction. Indexes to the rate of inflation the amount of the income tax brackets for tax rates, filing thresholds, personal exemptions, and standard deductions.
C HB1294
Income tax; Public/Private Education Investment tax credit. Creates income tax credits for business entities and individual taxpayers who make contributions to eligible public school foundations and eligible scholarship foundations. For individual taxpayers, the amount of the annual credit is 100 percent of the contribution but may not exceed $800 for individual taxpayers and $1,200 for married taxpayers filing jointly. The amount of the annual credit for business entities is 90 percent of the contribution with no limit on the dollar amount. The public school foundations are required to disburse annually 90 percent of the contributions for capital improvement projects approved by the local school board and for extracurricular activities. The scholarship foundations are required to disburse 90 percent of its contributions for qualified educational expenses through scholarships. There is a $20 million cap on total tax credits awarded annually, with $10 million allocated for contributions made to public school foundations and $10 million allocated for contributions made to scholarship foundations. The credit would be effective for taxable years beginning on and after January 1, 2006.
C HB1328
Assessment of real estate devoted to water-dependent use. Establishes and defines, for special assessment for land preservation, real estate devoted to water-dependent use. Consistent with constitutional mandate for establishing and defining such real estate, the bill provides that the General Assembly has determined that the classification of real estate devoted to water-dependent use is in the public interest for the preservation or conservation of such real estate. All provisions applicable to real estate devoted to agricultural, horticultural, forestal, and open-space uses apply equally to real estate devoted to water-dependent use. In addition, the commissioner of the revenue or duly appointed assessor shall value real estate devoted to water-dependent use in the same manner he values real estate devoted to agricultural, horticultural, forestal, or open-space use. Moreover, if property is subsequently rezoned to water-dependent, it shall be eligible for consideration for special assessment and taxation only after three years have passed since the rezoning was effective. Furthermore, the Director of the Department of Conservation and Recreation, the State Forester, and the Commissioner of Agriculture and Consumer Services shall provide, to the commissioner of the revenue or duly appointed assessor of each locality adopting a land-use plan, a statement of the standards which shall be applied uniformly throughout the Commonwealth in determining whether real estate is devoted to water-dependent use. The provisions of this act become effective on January 1, 2009 upon the passage of a constitutional amendment authorizing such provisions.
Sales and use tax; commercial and industrial exemptions. Restores the exemption, eliminated by the General Assembly in the 2004 Special Session I, for certain public service corporations, telecommunications companies, and telephone companies. The bill is effective July 1, 2007.
C HB1485
Sales and use tax exemption; nonprofit schools. Exempts nonprofit schools from the following two criteria used, among others, in determining sales and use tax exemption for nonprofit entities: (i) that the entity's annual general administrative costs, including salaries and fundraising, relative to its annual gross revenue, under generally accepted accounting principles, is not greater than 40 percent; and (ii) that if the entity's gross annual revenue was $250,000 or greater in the year prior to applying for the exemption, then the entity must provide a financial audit performed by an independent certified public accountant.
C HB1489
Income tax; deduction for organ donation medical expenses. Provides an income tax deduction for medical expenses not covered by insurance that are paid by the transplant recipient and that have not been taken as a medical deduction on the taxpayer's federal income tax return, effective for taxable years beginning on or after January 1, 2007. The amount of the deduction is the lesser of $5,000 or the actual amount paid by the taxpayer.
Tangible personal property tax relief reimbursement payments to localities. Provides that tangible personal property tax relief reimbursement payments to localities be made within 15 days of each locality's billing date for tangible personal property tax in effect on January 1, 1998.
C HB1568
Income tax; rent reductions tax credit. Removes the January 1, 2010, sunset date and allows the VHDA to approve an additional $100,000 in credits, for a total of $150,000, for rental fees that are reduced by 50 percent or more.
C HB1595
Local license taxes; repeal. Repeals local license taxes.
C HB1599
Local cigarette tax; administration. Requires any locality that levies a cigarette tax and permits the use of meter impressions or stamps to evidence its payment to enter into an arrangement with the Department of Taxation to allow tobacco wholesalers to use a dual die or stamp to evidence payment of local and state taxes. Under current law entering into such an arrangement is permitted but not required.
Real property taxes; service charges in lieu of; Virginia Port Authority. Clarifies the basis for determining service charges in lieu of real property taxes for real property owned by the Virginia Port Authority and its instrumentalities.
Individual income taxes; tax credits for tuition expenses. Establishes a pilot program for refundable income tax credits for tuition and textbook expenses charged by a private school or a public school to parents of certain children. The credit is the lesser of $1,000 or actual tuition expenses for taxable years beginning January 1, 2006, and is limited to low income taxpayers in counties with a population of less than 10,000. For purposes of public school funding, a child for whom credit is taken will be included in the average daily membership of the school division in which the child resides, but the amount of the credit taken will be deducted from the state funds available to that school division. The tax credit will expire on January 1, 2009.
C SB333
Rules and procedures for tax cases in circuit courts. Establishes new rules and procedures for cases involving taxes administered by the Department of Taxation (individual, corporate, sales and use taxes) intended to streamline the resolution of disputes once they enter the court system. For example, discovery would be expedited using stipulations for matters previously discovered in the course of the initial collection process; depositions would be used only with the consent of both parties or if ordered by the court; and bifurcation of issues, in the court's discretion, in order to speed the resolution of the case. The bill also establishes a Small Tax Case procedure for use in cases where taxes owed are $50,000 or less. Procedures such as no requirement to file an answer to the initial petition in order to contest petition, and stipulations will be used. Overall, the procedure will be informal (briefs and oral argument not required) and will allow the introduction of any evidence that has probative value.
C SB626
Taxes and fees for the Virginia Water Quality Improvement Fund. Establishes a $1 per day lodging fee on the sale of hotel, motel, and similar rooms and provides that such revenues plus $40 million annually in recordation tax revenues shall be deposited into the Virginia Water Quality Improvement Fund for funding of water quality.
Costs of blight abatement. Authorizes localities to place a lien on blighted properties repaired or acquired by the locality to recover any accrued unpaid interest on the cost of improvements made by the locality to bring such property in compliance with applicable building codes or the cost of disposing of the property. Currently, localities are authorized to charge simply the costs, but not any accrued unpaid interest thereon, of blight abatement to the property owner.