General Assembly>Division of Legislative Services>Publications>Session Summaries>2005>Taxation


CONTENTS | < PREVIOUS | NEXT > | BILL INDEX

Taxation

Passed

P HB1508

Motor vehicle sales and use tax; exemption for limited liability companies. Adds limited liability companies to the existing motor vehicle sales and use tax exemption for certain transfers from individuals or partnerships to corporations or from corporations to individuals or partnerships. Based on advice from the Attorney General's office, the DMV would not apply the exemption to limited liability companies without this change.
Patron - Landes

P HB1638

Sales and use tax; food for human consumption. Reduces the rate of the state sales and use tax on food for human consumption to 1.5 percent beginning July 1, 2005. Under current law the rate of the state sales and use tax on food is 3 percent, and is scheduled gradually to be reduced to 1.5 percent by July 1, 2007. This bill is identical to SB 708 and incorporates HB 1634, HB 1635, HB 1875, HB 2017, HB 2339, and HB 2421.
Patron - Callahan

P HB1641

Motor fuels tax; refund. Provides a 55 percent refund of the motor fuels tax paid by any person purchasing fuel for consumption in a vehicle designed or permanently adapted solely and exclusively for bulk spreading or spraying of agricultural liming materials, chemicals, or fertilizer, where the vehicle's equipment is mechanically or hydraulically driven by an internal combustion engine that propels the vehicle. This bill is identical to SB 794.
Patron - Orrock

P HB1655

Income tax credit for purchase of conservation tillage equipment. Increases the cap on the individual and corporate income tax credits for purchase of conservation tillage equipment from $2,500 to $4,000, and clarifies the definition of "conservation tillage equipment."
Patron - Lingamfelter

P HB1667

Unpaid taxes, levies, or other charges; distrain for the same. Makes a technical correction to clarify which highway vehicles in general may not be disgruntled for unpaid taxes, levies, or other charges. Sections 58.1-3941 and 58.1-3942 currently cross-reference a repealed section of the Code of Virginia that defined a "highway vehicle." Section 58.1-2101 defined a highway vehicle, but the section was repealed by the 2000 Session of the General Assembly, effective January 1, 2001. The bill corrects §§ 58.1-3941 and 58.1-3942 by including in these sections the definition of a highway vehicle as it appeared in repealed § 58.1-2101.
Patron - Landes

P HB1745

Motor vehicle daily rental fee. Provides that the daily rental vehicle fee will be implemented, enforced, and collected like rental taxes.
Patron - Sherwood

P HB1833

Income tax; effective date for personal exemption increase. Changes the effective date from January 1, 2006, to January 1, 2005, for the increase in the personal exemption from $800 to $900.
Patron - Parrish

P HB1857

Transient occupancy tax; Arlington County. Extends the time during which Arlington County may collect an additional transient occupancy tax of one-fourth of one percent to January 1, 2009. Current law would end the collection of the additional tax on January 1, 2006.
Patron - Eisenberg

P HB1885

Tobacco products tax. Makes several changes to the tobacco products tax including requiring licensure of distributors who (i) sell tobacco products in Virginia; (ii) bring or cause to bring tobacco products into Virginia; (iii) manufacture or store tobacco products in Virginia; or (iv) possess in Virginia for retail sale untaxed tobacco products and changing the basis upon which the tax is computed. The changes are effective January 1, 2006.
Patron - Ware, R.L.

P HB1965

Transient occupancy tax; Craig County and Prince George County. Adds Craig County and Prince George County to the list of counties that may levy the transient occupancy tax at a rate of five percent, with the revenues collected from that portion of the tax over two percent designated and spent solely for tourism, marketing of tourism or initiatives that, as determined in consultation with the local tourism industry organizations, attract travelers to the locality and generate tourism revenues in the locality.
Patron - Ingram

P HB2003

Income tax; checkoff for Spay and Neuter Fund. Creates a special fund in the state treasury known as the Spay and Neuter Fund into which designated income tax refund contributions shall be deposited. Such moneys are to be administered by the Virginia Federation of Humane Societies for spay and neuter surgeries throughout Virginia. This is not a new checkoff.
Patron - Dudley

P HB2007

Transient occupancy tax; Carroll County. Adds Carroll County to the list of counties that may levy the transient occupancy tax at a rate of five percent, with the revenues collected from that portion of the tax over two percent designated and spent solely for tourism, marketing of tourism or initiatives that, as determined in consultation with the local tourism industry organizations, attract travelers to the locality and generate tourism revenues in the locality. This bill incorporates HB 1964.
Patron - Armstrong

P HB2100

Sales and use tax exemption; nonprofit entities. Clarifies that nonprofit entities that were exempt from paying sales and use tax on the purchase of services as of June 30, 2003, shall continue to be exempt from such taxes if they comport with certain procedures and meet certain criteria.
Patron - Hugo

P HB2177

Recordation tax; exemption for limited liability companies. Restricts the real estate recordation tax exemption for limited liability companies (LLCs) to those transfers to or from an LLC that is not (i) a precursor to a transfer of control of the assets of the LLC to avoid recordation taxes, nor (ii) subsequent to a transfer of control of the assets of the company to avoid recordation taxes. This bill incorporates HB 1845.
Patron - Louderback

P HB2303

Income tax; voluntary refund contributions entities process changes. Explains the procedure for how voluntary refund contributions entities will be added to and removed from the income tax return beginning in 2005. Also adds Brown v. Board of Education Scholarship Program Fund, Dr. Martin Luther King, Jr. Commission Fund, and Virginia Caregivers Grant Fund to the list of entities entitled to voluntary contributions that appear on the individual income tax return form. This bill incorporates HB 2506.
Patron - Purkey

P HB2325

Tax administration; extension for filing tax returns. Allows taxpayers to request an extension of six months after the original due date for filing income tax returns. The penalty for failing to pay at least 90 percent of the tax by the extension date would be increased from one-half percent to two percent.
Patron - Hull

P HB2372

Local business license tax; population basis and fee increase. Provides that the population estimates of the Weldon Cooper Center for Public Service of the University of Virginia shall be used for determining population for purposes of imposing the business license fee in localities.
Patron - Ware, R.L.

P HB2411

Conformity of the Commonwealth's system of taxation with the 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 January 7, 2005. Current law specifies that such references refer to federal law as it existed on December 31, 2003. This bill contains an emergency clause and is identical to SB 856.
Patron - Bryant

P HB2444

Income tax; rent reductions tax credit. Extends the sunset date from December 31, 2005, to December 31, 2010, and limits the credit between January 1, 2006, and January 1, 2011, to those individuals or corporations that reduced rents and validly claimed a credit for the dwelling unit for all or part of December, 1999, and the tenant occupied the dwelling unit on December 31, 2005.
Patron - Suit

P HB2477

Personal property tax; notice for machinery and tools valuation change. Requires that proposed changes in the valuation method used for machinery and tools be published by a notice appearing in a newspaper of general circulation at least 30 days prior to such change and citizens be allowed to submit comments to the local commissioner of the revenue regarding the proposal during the 30 days.
Patron - Scott, E.T.

P HB2599

Sales and use tax exemption; public transportation. Restores a sales and use tax exemption for tangible personal property sold or leased to Alexandria Transit Company, Greater Lynchburg Transit Company, GRTC Transit System, or Greater Roanoke Transit Company that is owned, operated, or controlled by any county, city, or town, or any combination thereof, that provides public transportation services. The bill declares that an emergency exists and is effective beginning September 1, 2004. This bill is identical to SB 1195.
Patron - Ware, O.

P HB2625

Cigarette and other tobacco products taxes; discount allowed. Changes the discount allowed on the purchase of cigarette tax stamps from two and one-half cents per carton to two percent of the total charged by the Department of Taxation for the purchase of the tax stamps. The bill also provides a discount to dealers of other tobacco products equal to two percent of the total tax due from the dealer.
Patron - Byron

P HB2635

Deferred real estate tax; interest rate. Allows a local governing body to establish the interest rate applicable to deferred real estate tax payments, not to exceed the rate established by the Internal Revenue Code. Currently, interest for the deferred payment is set as the rate established by the Internal Revenue Code. This bill is identical to SB 1087.
Patron - Ebbin

P HB2679

Local license and local business taxes; appeals. Makes numerous changes to the appeals process regarding local license and local business taxes. This bill incorporates HB 2373 and HB 2374.
Patron - Lingamfelter

P HB2686

Tangible personal property tax; boats. Designates boats weighing less than five tons and used for business purposes as a separate class of tangible personal property for taxation purposes. This bill is identical to SB 1273.
Patron - Pollard

P HB2762

Sales and use tax; automobile refinishing. Provides that paint and other refinish materials separately stated that are applied to or affixed to a motor vehicle during its repair shall be taxed to the person for whom the repair is made.
Patron - Lingamfelter

P HB2774

Sales and use tax; manufactured signs. Specifies that manufactured signs are tangible personal property for purposes of sales and use tax.
Patron - Hargrove

P HB2788

Land preservation tax credit. Allows the Tax Commissioner to determine if a taxpayer may transfer certain unused credits if he acted in good faith based on erroneous information.
Patron - Johnson

P HB2827

Sales and use tax; truck trailers and cargo containers. Prohibits the Department of Taxation from taking any action to collect any sales and use tax from the sale or use prior to February 1, 2005, of certain truck trailers, cargo containers that are designed to be affixed to such truck trailers, and on-site storage containers that are similar to cargo containers but not necessarily designed to be affixed to truck trailers.
Patron - Orrock

P HB2852

Sales and use tax exemptions reports. Requires the Tax Commissioner to investigate and analyze the sales and use tax exemptions on a periodic basis and report his findings to the Chairmen of the House and Senate Finance Committees beginning in December 2006.
Patron - Hull

P HB2880

Communications tax reform. Directs the APA to review and collect information in 2005 regarding certain local communications taxes and report to the Chairmen of the House and Senate Finance Committees and the Department of Taxation no later than December 1, 2005.
Patron - Nixon

P HB2899

State cigarette tax; exclusive distributors. Exempts exclusive distributors and manufacturers from affixing tax revenue stamps to cigarettes if they are being shipped, sold, or delivered to wholesale dealer stamping agents in the Commonwealth.
Patron - Janis

P SB708

Sales and use taxes, food purchased for human consumption. Provides that the retail sales and use tax on food purchased for human consumption shall be imposed at a rate of 2.5 percent on and after July 1, 2005 (1.5 percent state and 1 percent local). Current law provides that the sales and use tax on food shall be imposed at a rate of 3.5 percent beginning July 1, 2005; 3 percent beginning July 1, 2006; and 2.5 percent beginning July 1, 2007. The bill accelerates the tax relief. This bill is identical to HB 1638 and incorporates SB 751 and SB 1193.
Patron - Chichester

P SB793

Transient occupancy tax; overnight accommodations. Clarifies that the transient occupancy tax applies to charges for any room or space suitable or intended for dwelling, lodging, or sleeping purposes.
Patron - Watkins

P SB794

Fuels taxes; refunds. Provides a refund equal to 55 percent of the state fuels tax paid for vehicles designed or permanently adapted exclusively for bulk spreading or spraying of agricultural liming materials, chemicals, or fertilizer. The bill will be effective January 1, 2006. This bill is identical to HB 1641.
Patron - Watkins

P SB796

Assessment of certain property by State Corporation Commission; statute of limitations. Clarifies that any taxpayer, the Commonwealth, or any county, city or town may only apply to the SCC for a review and correction of an assessment of value or tax within three months after receiving a certified copy of such assessment or tax.
Patron - Watkins

P SB801

Local consumer utility tax; Town of Dumfries. Allows the Town of Dumfries to impose by ordinance the local consumer utility tax on or after July 1, 2005. If the tax is imposed, Prince William County will no longer impose the tax in the town limits of Dumfries.
Patron - Colgan

P SB803

Voluntary contribution to the Dr. Martin Luther King, Jr. and the Virginia Caregivers Grant Funds. Allows individuals entitled to an income tax refund to contribute a portion, at least $1, or all of the refund to the Dr. Martin Luther King, Jr. Commission Fund for taxable years beginning on and after January 1, 2005. The Fund provides support for the work of the Dr. Martin Luther King, Jr. Living History and Public Center and generates nonstate funds to maintain the center. The bill also allows individuals to contribute a portion, at least $1, of their income tax refund to the Virginia Caregivers Grant Fund.
Patron - Marsh

P SB836

Motor vehicle sales and use taxes; exemptions. Provides that a gift of a motor vehicle to a spouse, son, or daughter shall be exempt from motor vehicle sale and use taxes, unless the person, other than a spouse, receiving the motor vehicle assumes an unpaid obligation relating to the vehicle.
Patron - Quayle

P SB844

Restrictions and exemptions on deferral of taxes for certain elderly and handicapped persons; disability benefits. Allows a locality to exclude up to $5,000 of permanent or temporary disability benefits of an owner when determining eligibility for its tax deferral programs. This bill is identical to SB 851.
Patron - Deeds

P SB851

Restrictions and exemptions on deferral of taxes for certain elderly and handicapped persons; disability benefits. Allows a locality to exclude up to $5,000 of permanent or temporary disability benefits of an owner when determining eligibility for its tax deferral programs. This bill is identical to SB 844.
Patron - Cuccinelli

P SB856

Conformity of the Commonwealth's system of taxation with the 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 January 7, 2005. Current law specifies that such references refer to federal law as it existed on December 31, 2003. This bill contains an emergency clause and is identical to HB 2411.
Patron - Chichester

P SB866

Individual income tax; salary subtraction for federal and state employees. Amends the individual income tax subtraction allowed to federal and state employees by clarifying that it is available only to employees with a total annual salary from all employment of $15,000 or less.
Patron - Chichester

P SB867

Powers and duties of the Tax Commissioner; annual report on corporate tax relief. Requires the Tax Commissioner to issue an annual report to the members of the House Appropriations Committee, the House Finance Committee, and the Senate Finance Committee providing a comprehensive view of corporate tax relief in the Commonwealth during the preceding tax year. A preliminary report shall be submitted by December 1 of each year and a final report submitted by April 15 of the following year.
Patron - Chichester

P SB874

City of Chesapeake; annual debt limitation. Provides that any obligations issued by the City of Chesapeake under a local tax increment financing program shall not be included for purposes of any annual debt limitation set forth in the city's charter. The bill also makes a technical change of deleting a population bracket and replacing it with the City of Virginia Beach.
Patron - Quayle

P SB876

Cigarette tax enforcement; penalties. Changes the cigarette tax laws to provide consistency with the non-participating manufacturer reporting requirements and to enhance compliance and administration.
Patron - Hawkins

P SB896

Real property tax; common spaces. Amends the definition of an "open or common space" to include common areas that are part of a planned residential development initially recorded before January 1, 1985, that did not include automatic membership in a membership corporation or association in its declaration. This change will prohibit a locality from assessing real estate taxes against these membership corporations or associations for the common area. Instead, the value of the common area will be taxed through the increased value of the residential property that has an interest in the common area. This is the approach that currently applies to residential and commercial property with automatic membership in a membership corporation or association. Today, residential developments with common areas must include mandatory or automatic membership in the corporation or association charged with its upkeep; however, older developments did not necessarily have mandatory membership.
Patron - Norment

P SB897

Income taxes; charitable contributions for the relief of tsunami victims. Provides that cash contributions for the relief of tsunami victims made in January 2005 may be allowed as a charitable deduction when computing Virginia income taxes for the taxable year 2004.
Patron - Norment

P SB1051

Local real estate tax relief programs. Changes authorized local real estate tax relief programs by (i) authorizing counties, cities, and towns to use the locality's median adjusted gross income of its married residents (as published by the Weldon Cooper Center for Public Service of the University of Virginia) as a total income limit for eligibility, and (ii) authorizing counties, cities, and towns to adjust the current net financial worth limit for inflation.
Patron - Wagner

P SB1052

Delinquent payment of certain local excise taxes. Allows the governing body of any county, city, or town to impose a penalty for the delinquent remittance of excise taxes on meals, lodging, or admissions collected from consumers, not to exceed 10 percent for the first month the taxes are past due and five percent for each month thereafter, not to exceed 25 percent of the amount of the taxes not remitted. Currently, the penalty for such delinquent remittance is limited to 10 percent.
Patron - Wagner

P SB1087

Deferred real estate tax; interest rate. Allows a local governing body to establish the interest rate applicable to deferred real estate tax payments, not to exceed the rate established by the Internal Revenue Code. Currently, interest for the deferred payment is set as the rate established by the Internal Revenue Code. This bill is identical to HB 2635.
Patron - Whipple

P SB1105

Sales and use tax exemption for certain nonprofit educational institutions; purchase of services. Provides that any nonprofit educational institution doing business in the Commonwealth which provides a face-to-face educational experience in American government that was exempt from paying sales and use tax for the purchase of services as of June 30, 2003, will continue to be exempt from that payment, so long as the entity follows specified procedures and meets certain criteria set forth in the section.
Patron - Saslaw

P SB1139

Land preservation tax credit. Requires the fair market value of qualified donations under the Virginia Land Conservation Incentives Act of 1999 to be substantiated by a qualified appraisal, which must be signed by a qualified appraiser. A copy of the appraisal must be submitted to the Department of Taxation. A false or fraudulent appraisal may lead to revocation of the appraiser's license or other disciplinary action, and future appraisals by the same appraiser may be disallowed.
Patron - Hanger

P SB1195

Sales and use tax exemption; public transportation. Restores a sales and use tax exemption for tangible personal property sold or leased to Alexandria Transit Company, Greater Lynchburg Transit Company, GRTC Transit System, or Greater Roanoke Transit Company that is owned, operated, or controlled by any county, city, or town, or any combination thereof, that provides public transportation services. The bill declares that an emergency exists and is effective beginning September 1, 2004. This bill is identical to HB 2599.
Patron - Lambert

P SB1219

Retail sales and use taxes; sales to nonresidents and bad debts. Provides that, for sales of tangible personal property to consumers making a gift to a person located in another state, a dealer registered to collect the tax in the recipient's state may elect, with the approval of the tax commissioner, to collect the tax of the recipient's state or that imposed by the Commonwealth. However, if the dealer is not registered to collect tax in the state in which the property is delivered, but is a registered dealer in the Commonwealth, the dealer shall collect the tax at the sales tax rate imposed by the Commonwealth. The bill also provides that an alternative means for determining the sales tax credit allowed for bad debts may be used by dealers meeting certain conditions.
Patron - Stosch

P SB1225

Income tax; preparers of fraudulent returns; penalty. Makes it a Class 6 felony for income tax return preparers to willfully and knowingly participate in the preparation of a fraudulent tax return and authorizes the Tax Department to seek an injunction against a tax return preparer for various types of conduct.
Patron - Stosch

P SB1273

Tangible personal property tax; separate classification for boats used in business. Establishes as a separate classification of tangible personal property for tax rate purposes boats weighing less than five tons used for business purposes only. This bill is identical to HB 2686.
Patron - Rerras

P SB1279

Local taxation of certain machinery and tools. Allows a locality to classify certain heavy machinery used by businesses not otherwise set out in Article 2 (§ 58.1-3507 et seq.) of Chapter 35 of Title 58.1, "Machinery and Tools Tax," as a separate classification of property. The tax rate may not exceed the rate imposed upon the general class of tangible personal property.
Patron - Reynolds

P SJ308

Virginia Code Commission; tax preferences outside of Title 58.1. Directs the Virginia Code Commission to identify tax preferences located outside of Title 58.1 in the Code of Virginia, and to report biennially to the General Assembly with recommendations for legislation to cross-reference these preferences in Title 58.1 or to generally make the tax preferences in the Code easier to identify.
Patron - Chichester

Failed

F HB1490

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 incorporates HB 1506, HB 1874, HB 2008, and HB 2750.
Patron - Tata

F HB1504

Business, Professional and Occupational Licensing Tax (BPOL); license fees, rates and requirements. Requires localities that impose the BPOL tax to (i) eliminate license fees by January 1, 2007, (ii) exempt the first $100,000 of gross receipts from taxation by January 1, 2007, and (iii) reduce the several different rates currently in the Code to a flat rate of $.20 cents per $100 of gross receipts for license years beginning on and after January 1, 2006.
Patron - Shuler

F HB1506

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 has been incorporated into HB 1490.
Patron - Shuler

F HB1512

Income tax; tax credit for certain health care practitioners. Provides an income tax credit to health care practitioners who provide free medical services to indigent persons who cannot pay for the services themselves. The amount of the credit is equal to 25 percent of the fee the practitioner would charge for the service, not to exceed $500 annually for any practitioner. The credit would be available for taxable years beginning on or after January 1, 2006.
Patron - Cosgrove

F HB1515

Transient occupancy tax; Craig County. Adds Craig County to the list of counties that may impose an additional three percent transient occupancy tax (for a total of five percent) with the additional tax revenue to be designated and spent for promoting tourism, travel, or business that generates tourism or travel in the locality.
Patron - Shuler

F HB1525

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. This bill has been incorporated into HB 2099.
Patron - Frederick

F HB1529

Income tax; teacher expenses tax credit. Provides an income tax credit of up to $500 for costs incurred by teachers for materials they use teaching children in grades kindergarten through 12, for taxable years beginning on or after January 1, 2006. This bill incorporates HB 1898.
Patron - Frederick

F HB1530

Income tax; commuter parking lot deduction. Provides a deduction for taxable years beginning on and after January 1, 2006, to owners of shopping centers and strip malls who contribute to the locality the right to use certain parking spaces as commuter parking. The amount of the annual deduction will not exceed $50 per parking space. The governing body of the county, city, or town in which the commuter parking spaces are located must develop a plan based on guidelines established by the Department of Taxation.
Patron - Frederick

F HB1533

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, 2005. However, individuals with taxable income exceeding $150,000 and married couples with taxable income exceeding $250,000 are not eligible for the deduction.
Patron - Frederick

F HB1534

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 four-day period each year beginning on the Friday before the first Monday in September. 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 has been incorporated into HB 1878.
Patron - Frederick

F HB1535

Sales and use tax exemption; certain flags. Provides a sales and use tax exemption for the purchase of the official flags of the United States, the Commonwealth of Virginia, or of any county, city, or town, or of any flag that supports or commemorates members of the United States Armed Forces who are or were prisoners of war or missing in action. Under current law, the official flags of the United States, the Commonwealth of Virginia, or of any county, city, or town are exempt when purchased from a government agency.
Patron - Frederick

F HB1536

Car tax relief. Removes the cap on the overall amount of car tax relief that was created by Chapter 1 of the Acts of Assembly of 2004 Special Session I and restores the car tax relief program as it was originally enacted. This bill has been incorporated into HB 1654.
Patron - Frederick

F HB1551

Sale price of motor vehicles subject to the motor vehicle sales and use tax. Reduces the taxable price of a motor vehicle purchased for business purposes in determining motor vehicle sales and use tax liability, by the value of any motor vehicle taken in trade. The amount of credit for a vehicle taken in trade is the lesser of the allowance given by the seller or the wholesale value of the vehicle as specified in a recognized pricing guide.
Patron - Alexander

F HB1552

Sale price of motor vehicles subject to the motor vehicle sales and use tax; reduction for trade-in. Reduces the taxable price of a motor vehicle for purposes of determining motor vehicle sales and use tax liability by the value of any motor vehicle taken in trade. The amount of credit for a vehicle taken in trade is the lesser of the allowance given by the seller or the wholesale value of the vehicle as specified in a recognized pricing guide.
Patron - Alexander

F HB1566

Local recordation fee. Allows cities and counties to impose a fee not to exceed $250 on certain recorded instruments that are subject to the state recordation tax. The fee will be paid by the grantor and will only be allowed in localities having a growth rate in K through 12 school-age population of one-half percent over the previous three years combined growth rate. Also, affordable housing is exempt from the fee. The revenues generated by the fee are to be used by the locality for public school capital projects.
Patron - Cosgrove

F HB1571

Corporate income tax; Virginia Entrepreneurial Encouragement Program. Creates the Virginia Entrepreneurial Encouragement Program, which provides tax incentives to start-up businesses during the first three years of their existence. The incentives are the exemption from income tax for the first two years and a reduced income tax rate (one-half of the corporate income tax rate) for the third year. The program applies to businesses created on or after January 1, 2005, but no later than December 31, 2007.
Patron - Purkey

F HB1591

Income tax; deduction for long-term care insurance premiums. Clarifies that the current deduction for long-term care insurance premiums paid by a taxpayer for himself or others is allowed to the taxpayer provided no deduction is taken for federal income tax purposes. The benefits will not be treated as taxable income to the beneficiaries of such benefits. The deduction is effective for taxable years beginning on and after January 1, 2005.
Patron - Reese

F HB1593

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. The exempt items are: school supplies, 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 has been incorporated into HB1878.
Patron - Ware, O.

F HB1610

Sales and use tax; allocation of revenue. Increases the sales and use tax revenue dedicated to the transportation trust fund from an amount equivalent to the amount raised by a one-half percent tax to a three-quarters percent tax.
Patron - Cole

F HB1634

Sales and use taxes, reduction of rate on food purchased for human consumption. Provides that the retail sales and use tax on food purchased for human consumption shall be imposed at a rate of 2.5 percent on and after July 1, 2005 (1.5 percent state and one percent local). Current law provides that the sales and use tax on food shall be imposed at a rate of 3.5 percent beginning July 1, 2005; 3 percent beginning July 1, 2006; and 2.5 percent beginning July 1, 2007. The bill accelerates the tax relief. This bill has been incorporated into HB 1638.
Patron - Bryant

F HB1635

Sales and use tax exemption; food for human consumption. Exempts food for human consumption from the state sales and use tax. This bill has been incorporated into HB 1638.
Patron - Welch

F HB1636

Motor vehicle rental taxes. Requires that all revenue from the state motor vehicle rental taxes be deposited into the Transportation Trust Fund and used solely for transportation purposes.
Patron - Cole

F HB1654

Car tax relief. Removes the cap on the overall amount of car tax relief and gradually increases the amount of car tax relief to 100 percent of the reimbursable amount for qualifying vehicles over a six-year period. This bill incorporates HB 1536 and HB 2257.
Patron - Lingamfelter

F HB1684

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, 2006. 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.
Patron - Lewis

F HB1717

Individual income tax; personal exemption. Increases the personal exemption amount from $900 to $1,000 for tax years beginning on and after January 1, 2006. This bill incorporates HB 2769.
Patron - Fralin

F HB1744

Income tax credit; purchase of machinery and equipment for processing recyclable materials. Extends from 10 years to 20 years the carryover period for individual and corporate income tax credits allowed for the purchase of machinery and equipment for processing recyclable materials. The bill also revives the individual income tax credit for such purposes that expired on January 1, 2004, retroactively to that date. The credit is equal to 10 percent of the purchase price paid for the equipment.
Patron - Putney

F HB1811

Prince William County; overcrowding in public schools; real estate tax credit. Authorizes Prince Wil-lam County to provide a credit against real estate taxes paid by the owner of a home in the attendance zone of a school that the school board has declared to be overcrowded. The credit is for qualifying educational expenses paid during the taxable year on behalf of each child of the taxpayer who (i) was eligible to be enrolled in a public school free of charge pursuant to § 22.1-3 that the school board determines to be overcrowded, (ii) qualifies as the taxpayer's dependent for federal income tax purposes, (iii) was a student at a qualified school in grades kindergarten through 12 during the taxable year, and (iv) does not attend a free public school during the semester or other portion of the school year for which such qualifying educational expenses were paid. The bill defines "qualified school" and "qualifying educational expenses". In order for a public school to be considered "overcrowded" the school board shall have determined that enrollment exceeded 110 percent of the capacity during the taxable year for which the taxpayer is applying for the credit.
Patron - Marshall, R.G.

F HB1815

Commonwealth Transportation Expedition Fund. Dedicates one-half of all insurance license tax revenues to expedite transportation projects throughout the Commonwealth that are within two years of completion. The Commonwealth Transportation Board shall use the funds to expedite the completion of those transportation projects that it determines will have the greatest impact on (i) reducing poor air quality, (ii) reducing traffic congestion, and (iii) aiding the safety of motorists or pedestrians.
Patron - Marshall, R.G.

F HB1818

Income tax; bicyclists' tax credits for businesses and individuals. Creates two separate tax credits; one for employers and one for individuals. The tax credit for employers allows them to take a credit of up to $5,000 for providing bicycle racks and showers in their place of business for use by employees who ride bikes to work. The tax credit for individuals provides a credit of $15 per month for each month the individual rides his bike to and from work for at least 10 days of the month.
Patron - Suit

F HB1836

Virginia Coal Employment and Production Incentive Tax Credit. Extends the sunset of the Virginia Coal Employment and Production Incentive Tax Credit to tax years beginning on and after January 1, 2009. The credit is currently set to expire for all tax years on and after January 1, 2005.
Patron - Parrish

F HB1838

County food and beverage tax; referendum. Limits the frequency of referendums on imposing a county food and beverage tax to once every three years.
Patron - Parrish

F HB1839

Sales and use tax exemption; transfer of property to a contractor. Exempts from sales and use tax personal property acquired after January 1, 2005, but before September 1, 2006, by any nonprofit entity exempt from the sales and use tax, and transferred to any contractor, or purchased by any contractor pursuant to a contract with such nonprofit entity, if the purpose of the transfer or purchase is to construct a memorial for any branch of the United States Armed Forces.
Patron - Parrish

F HB1845

Recordation tax; exemption for limited liability companies. Removes the exemption from the recordation tax for LLCs, corporations, and partnerships. This bill has been incorporated into HB 2177.
Patron - Van Yahres

F HB1874

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. Because under current federal law there is no state estate tax credit, the bill eliminates the current Virginia estate tax. This bill has been incorporated into HB 1490.
Patron - McDougle

F HB1875

Sales and use tax exemption; food for human consumption. Exempts food for human consumption from the state sales and use tax. This bill has been incorporated into HB 1638.
Patron - McDougle

F HB1876

Retail sales and use tax; eliminates accelerated collection and remittance by vendors. Eliminates the additional June payment for sales and use taxes required of dealers with taxable sales and purchases of $1.3 million or greater. The bill is effective August 1, 2005.
Patron - McDougle

F HB1878

Sales and use tax exemption; school-related items. Beginning in 2005, 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. 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 incorporates HB 1534, HB 1593, HB 2269, and HB 2559.
Patron - McDougle

F HB1887

Tobacco products tax; definitions. Defines the terms "distributor," "manufacturer," and "manufacturer's representative."
Patron - Ware, R.L.

F HB1888

Historic rehabilitation tax credit. Provides that certain material restoration work (i) that restores a historic home of a President of the United States to within the period of significance stated in the National Historic Landmark individual designation of such home and (ii) that is consistent with "The Secretary of the Interior's Standards for Restoration" shall be eligible for the historic rehabilitation tax credit. The bill is effective for any material restoration completed on or after January 1, 2005, including any eligible restoration expenses for such restoration that were incurred prior to such date.
Patron - Ware, R.L.

F HB1898

Income tax; teacher expenses tax credit. Provides an income tax credit of up to $500 for unreimbursed costs incurred by teachers for supplies they use in their classrooms teaching children in grades kindergarten through 12, for taxable years beginning on or after January 1, 2006. This bill has been incorporated into HB 1529.
Patron - Carrico

F HB1901

Income tax; day-care facility investment tax credit. Adds expenditures for contracting out on-site child day-care services to the list of items and activities for which the day-care facility investment tax credit is allowed. There is language that removes certain restrictions regarding the approval of credit applications, including the one limiting the credit to $100,000 per year per taxpayer. The new provisions are effective for taxable years beginning on and after January 1, 2006.
Patron - Baskerville

F HB1910

Estate tax. Removes the estate tax from those estates (i) valued at $10 million or less, or (ii) of which a majority of the assets are an interest in a closely held business, including a working farm.
Patron - Baskerville

F HB1913

Individual income tax; personal exemption. Increases the personal exemption amount from $900 to $1,600 for tax years beginning on and after January 1, 2006. This bill has been incorporated into HB 1717.
Patron - Cole

F HB1935

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, 2006.
Patron - Shannon

F HB1942

Children At Risk in Education Tax Credit. Creates a tax credit to promote educational opportunities for children who are at risk of educational failure. Tax credits will be awarded to business entities for eligible contributions made to eligible nonprofit tuition assistance grant funding organizations. The amount of the credit is 25 percent of the eligible contribution, but may not exceed 75 percent of the tax liability of the business entity. The contributions may be awarded as grants for students' tuition in public and nonpublic schools. There is a $6 million cap on total tax credits awarded annually. The credit would be effective for taxable years beginning on and after January 1, 2006.
Patron - Saxman

F HB2000

BPOL tax; gross receipts. Changes name from license tax to gross receipts tax and repeals newspapers' exemption from the tax. It allows localities to exempt newspapers from the BPOL tax provided they are exempt from state sales tax. However, if the locality imposes the tax on newspapers, 50 percent of the revenues generated from the tax on newspapers must be used for the locality's arts, cultural or tourist attractions. This bill incorporates HB 2190.
Patron - Griffith

F HB2008

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 has been incorporated into HB 1490.
Patron - Armstrong

F HB2017

Sales and use taxes; food purchased for human consumption. Provides that the retail sales and use tax on food purchased for human consumption shall be imposed at a rate of two and one-half percent on and after July 1, 2005 (one and one-half percent state and one percent local). Current law provides that the sales and use tax on food shall be imposed at a rate of three and one-half percent beginning July 1, 2005; three percent beginning July 1, 2006; and two and one-half percent beginning July 1, 2007. The bill accelerates the tax relief. This bill is identical to HB 2339 and HB 2421 and has been incorporated into HB 1638.
Patron - Hall

F HB2023

Meals tax; cities and towns. Restricts the imposition in any city or town having a population of 100,000 or more of any new meals tax or tax rate increase without approval by referendum.
Patron - Welch

F HB2030

Individual income tax; stay-at-home parents' tax credit. Allows a $300 credit against income tax, for taxable years beginning on and after January 1, 2006, for taxpayers who stay at home to take care of their children who are 10 years of age or younger.
Patron - Amundson

F HB2035

Cigarette excise tax. Imposes an excise tax on cigarette manufacturers at a rate of 2 cents for each of the manufacturer's cigarettes sold in the Commonwealth. A cigarette manufacturer may claim as credit against any excise tax due (i) the Commonwealth's share of the manufacturer's contributions under the Master Settlement Agreement or (ii) for nonparticipating manufacturers, the net escrow deposits made each year for the manufacturer's cigarettes sold in the Commonwealth. This bill has been incorporated into HB 2919.
Patron - Hamilton

F HB2057

Sales and use tax exemption; telecommunications companies. Effective July 1, 2006, restores the sales and use tax exemption for telecommunication companies that was eliminated in the 2004 Special Session I.
Patron - Byron

F HB2065

Taxation; nonresident contractor withholding. Establishes a procedure for withholding taxes from nonresident contractors based on the contract price.
Patron - Parrish

F HB2066

Car tax; dedication of income taxes 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, 2007, and only if a Constitutional amendment is ratified in November, 2006, exempting from taxation all motor vehicles used for nonbusiness purposes. This bill incorporates HB 2498.
Patron - Rust

F HB2092

Sales and use tax; exemption for certain contractors. Exempts from paying the sales and use tax any person who contracts on or after July 1, 2006, to perform services for and provide tangible personal property for consumption or use by the Commonwealth, any political subdivision of the Commonwealth, or the United States, if the Commonwealth, political subdivision, or the United States certifies that title to such tangible personal property will pass to such governmental entity. The bill has a delayed effective date of July 1, 2006.
Patron - Hugo

F HB2160

Income tax and sales and use tax revenue; allocation of certain growth for transportation. Allocates 20 percent of the annual growth in income tax and sales tax revenue coming from Northern Virginia and Hampton Roads back to those regions for transportation purposes. The Northern Virginia Transportation Authority administers the funds for transportation projects in Northern Virginia. The bill creates the Hampton Roads Transportation Authority to administer the funds for transportation projects in the Hampton Roads area.
Patron - Reese

F HB2190

Business, professional and occupational license (BPOL) tax; newspapers' exemption. Repeals the BPOL tax exemption for newspapers, magazines, newsletters or other publications issued daily or regularly at average intervals not exceeding three months, provided they also have a sales tax exemption. This bill has been incorporated into HB 2000.
Patron - Wardrup

F HB2191

Newspaper tax; Environmental Newspapers Fund. Creates a tax to be imposed on newspaper publishers at the rate of $0.01 on every newspaper published and delivered daily in the Commonwealth. The revenue generated shall be deposited into a special fund, the Environmental Newspapers Fund, to be used for environmental activities throughout the Commonwealth, after the administrative expenses are retained by the Tax Department.
Patron - Wardrup

F HB2231

Local meals taxes and food and beverage taxes; gratuities and service charges. Prohibits imposition of local meals taxes and local food and beverage taxes on that portion of the sales price constituting a gratuity or service charge. This bill has been incorporated into HB 2232.
Patron - Gear

F HB2232

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. This bill incorporates HB 2231.
Patron - Gear

F HB2241

Business, professional and occupational license tax; real estate appraisal entities. Exempts from the BPOL tax the gross receipts that are received by an appraisal entity for real estate appraisal transactions when such amounts are paid to an appraiser affiliated with the appraisal entity as a fee and the appraiser pays the BPOL tax on such receipts.
Patron - O'Bannon

F HB2257

Tangible personal property tax relief. Amends the personal property tax relief program effective January 1, 2006, by establishing a reimbursement ratio to determine each locality's share of the $950 million of total car tax relief. The reimbursement ratio is a fraction (i) the numerator of which is the value of all qualifying vehicles in a locality, up to the first $20,000 of value, multiplied by the effective tax rate in effect in the locality on July 1, 1997, or August 1, 1997, whichever is greater; and (ii) the denominator of which is the aggregate amount of the calculation in (i) for all localities. The bill also provides that reimbursements to localities will be paid in 12 equal monthly installments beginning with the month of May each year, and requires localities to provide, in an equitable manner, personal property tax relief on qualifying vehicles. This bill has been incorporated into HB 1654.
Patron - Bell

F HB2269

Sales and use tax exemption; school-related items. Beginning in 2005, 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 has been incorporated into HB 1878.
Patron - Bell

F HB2289

Individual and corporate income tax credit; agricultural best management practices. Increases the current maximum individual and corporate income tax credit from 25 percent to 30 percent of the first $70,000 of the cost of implementing agricultural best management practices (i.e. from $17,500 to $21,000). The bill also creates new individual and corporate income tax credits equivalent to 50 percent of the first $70,000 (or $35,000) of the cost of implementing an agricultural best management practice that directly establishes actively growing vegetative cover on crop fields throughout the entire calendar year. Both credits cannot be taken for the same costs. The bill is effective for taxable years on and after January 1, 2006.
Patron - Lingamfelter

F HB2292

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.
Patron - Lingamfelter

F HB2300

Income tax; voluntary contribution of tax refunds for western Virginia region cultural organizations. Allows taxpayers entitled to an income tax refund to designate part or all of their refund to 17 western Virginia region cultural organizations.
Patron - Fralin

F HB2302

Income tax; toll payments 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 for tolls paid on Virginia highways, for taxable years beginning on and after January 1, 2006.
Patron - Fralin

F HB2339

Sales and use taxes, reduction of rate on food purchased for human consumption. Provides that the retail sales and use tax on food purchased for human consumption shall be imposed at a rate of 2.5 percent on and after July 1, 2005 (1.5 percent state and 1 percent local). Current law provides that the sales and use tax on food shall be imposed at a rate of 3.5 percent beginning July 1, 2005; 3 percent beginning July 1, 2006; and 2.5 percent beginning July 1, 2007. The bill accelerates the tax relief. This bill is identical to HB 2017 and HB 2421 and has been incorporated into HB 1638.
Patron - Athey

F HB2340

Local license fees and taxes; exemption. Provides an exemption from local license fees and taxes at the locality's option to an entity that manufactures and sells the manufactured goods at the place they were manufactured. Under current law such exemption is restricted to the sale of such goods at wholesale.
Patron - Putney

F HB2356

Motor fuel tax; rate increase. Increases the tax on gasoline, diesel fuel, and alternative fuel by $0.075 per gallon, increases the motor carrier road tax by an equivalent of $0.075 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, 2006, 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.
Patron - Watts

F HB2359

Local piggyback income tax and personal property tax. Allows localities to impose a local income tax at a rate of either one-half or one 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, 2006.
Patron - Watts

F HB2373

Local tax appeals process. Permits the local appeals process to apply to additional local taxes assessed on a business, including consumer utility, food and beverage, recordation, admissions, video programming, transient occupancy, and cigarette taxes. This bill has been incorporated into HB 2679.
Patron - Ware, R.L.

F HB2374

Local taxes; appeals and rulings process. Requires the commissioner of the revenue or other assessing official to include the facts and arguments supporting his decision in a written determination when a correction is sought for a business tax assessment. The taxpayer is also required to submit a copy of the written determination with any appeal to the Tax Commissioner. Finally, the bill shortens the time from two years to 180 days for determining when the taxpayer may appeal to the Tax Commissioner absent a final determination from the commissioner of the revenue. This bill has been incorporated into HB 2679.
Patron - Ware, R.L.

F HB2392

Local cigarette tax. Authorizes all counties to impose a cigarette tax not to exceed $0.50 per pack.
Patron - Barlow

F HB2401

Dickenson County's use of Coal and Gas Road Improvement Fund. Allows Dickenson County to use up to $500,000 in 2005 and again in 2006 from its coal and gas road improvement fund for the purpose of debt reduction. Any of the authorized amounts not used for such purpose are to be used for public road improvements and water and sewer systems in Dickenson County.
Patron - Phillips

F HB2421

Sales and use taxes, reduction of rate on food purchased for human consumption. Provides that the retail sales and use tax on food purchased for human consumption shall be imposed at a rate of 2.5 percent on and after July 1, 2005 (1.5 percent state and 1 percent local). Current law provides that the sales and use tax on food shall be imposed at a rate of 3.5 percent beginning July 1, 2005; 3 percent beginning July 1, 2006; and 2.5 percent beginning July 1, 2007. The bill accelerates the tax relief. This bill is identical to HB 2339 and HB 2017 and has been incorporated into HB 1638.
Patron - Parrish

F HB2426

Disposition of certain tax revenues to transportation districts. Provides that the localities within the Potomac and Rappahannock Transportation Commission may request that motor vehicle fuel sales tax funds collected be disbursed to the locality in which the revenue was generated to be used in accordance with all other procedures of the Commission. Also, a transportation commission may meet at two or more locations simultaneously, linked by telephonic or video conferencing as long as each location is public and has met all advertising requirements.
Patron - Cole

F HB2432

Virginia Fuels Tax Act. Indexes the rate of tax on each gallon of motor fuel on July 1 of each even-numbered year by the percent change in the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average for All Items, as reported by the U.S. Department of Labor Bureau of Labor Statistics for the immediately preceding two years.
Patron - Hamilton

F HB2453

Real property assessments. Provides that (i) certain federal or state restrictions on real property be considered in determining the fair market value and the capitalization rate for the real property, 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.
Patron - Suit

F HB2466

Sales and use tax exemption; school textbooks. Provides a sales and use tax exemption on the purchase of required textbooks to students attending any institution of learning. Under current law, the exemption is provided only to those students attending nonprofit institutions of learning.
Patron - May

F HB2494

Tax reform; income tax, sales and use tax, estate tax, and local license taxes. Makes numerous changes to the income tax and sales and use tax, increases the motor vehicle sales and use tax from three percent to four percent and reduces the sales price by the value of any trade-in, repeals local license taxes, eliminates the estate tax, eliminates the accelerated sales tax payments by certain vendors, and repeals the Personal Property Tax Relief Act of 1998. Regarding sales and use taxes, the bill repeals most exemptions, exempts food from the tax, and extends imposition of the tax to most services, excluding health care services and business to business services. The bill creates a new set of individual income tax rates and eliminates almost all exemptions, deductions, subtractions and credits for calculating taxable income. The only remaining deductions are for social security income and income earned on obligations of the federal government included in federal adjusted gross income. In addition, revenues collected from one and one-half percent of the taxable income reported by the Department of Taxation annually will be distributed to localities that have a property tax rate on motor vehicles no greater than $0.01 per $100 of assessed value, based on their share of such taxable income. The new income tax rates are as follows:

Virginia Taxable
Income Level
Single
Taxpayer
Married
Taxpayer
$0 - $12,000
0% 0%
$12,001 - $24,000
3.5% 0%
$24,001 - $30,000
4% 0%
$30,001 - $45,000
5.5% 5.5%
$45,001 and above
6.25% 6.25%

Patron - Louderback

F HB2496

Individual income tax; tax credit for certain teachers in certain schools. Provides a $500 income tax credit to individuals who are employed as licensed instructors in schools that have not attained full accreditation either for a specific subject area or for the entire school, for taxable years beginning on and after January 1, 2006. The school must attain full accreditation within three years of the teacher's employment in the school or the credit ends for that teacher.
Patron - Keister

F HB2506

Voluntary contributions to Brown v. Board of Education Scholarship Program Fund. Allows individuals entitled to a state income tax refund to contribute a portion, at least $1, or all of the refund to the Brown v. Board of Education Scholarship Program Fund for taxable years beginning on and after January 1, 2005. The Fund provides financial aid to eligible students who were enrolled in the public schools between 1954 and 1964 in school divisions in which schools were closed to avoid desegregation, to assist them in obtaining either a General Education Development (GED) certificate, a high school diploma, or a two-year or four-year undergraduate degree from an accredited public institution of higher education in Virginia. This bill is a recommendation of the Brown v. Board of Education Scholarship Awards Committee. This bill has been incorporated into HB 2303.
Patron - Abbitt

F HB2513

Income tax; employer provided long-term care insurance tax credit. Grants an income tax credit to business taxpayers that provide long-term care insurance for employees. The annual credit allowed is 10 percent of the costs of the long-term care insurance premiums but no more than (i) a total of $5,000 or (ii) $100 per employee, whichever is less.
Patron - Landes

F HB2548

Individual income tax; credit for ignition interlock. Provides a credit, not to exceed $250, to individuals who purchase and install or have installed an ignition interlock, for taxable years beginning on and after January 1, 2006.
Patron - Moran

F HB2553

Income tax; railroad company tax credit. Grants a tax credit to a rail company that improves its intermodal rail lines located in western Virginia. The credit will be for direct costs incurred in undertaking the rail improvements, for taxable years beginning on or after January 1, 2006, and before January 1, 2011. The credit is limited to $2.5 million dollars.
Patron - Cline

F HB2559

Sales and use tax exemption; school-related items. Beginning in 2005, 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 has been incorporated into HB 1878.
Patron - Cline

F HB2600

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 individuals during the taxable year. An individual at least 70 years old, or an individual purchasing long-term care insurance for a Virginia resident at least 70 years old, is eligible for an individual income tax credit for insurance premiums paid by the individual for long-term care insurance coverage of Virginia residents at least 70 years old. The tax credit is the lesser of the individual's income tax liability or the actual premiums paid in the taxable year. The credit would be available beginning with the 2005 taxable year. Individuals itemizing on their federal income tax return long-term care insurance premiums for insurance coverage on a resident individual of the Commonwealth at least 70 years old are not eligible for the tax credit. This bill incorporates HB 2864.
Patron - Landes

F HB2675

Admissions taxes; classification. Designates motion pictures played in theatres as a separate class of events for purposes of imposing the local admissions tax.
Patron - Ebbin

F HB2702

Income tax; distribution of revenues to localities. Requires the transfer of one percent of individual income tax revenues to localities in 2005, and the amount increases one percent each year until it reaches a maximum of five percent for 2009 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.
Patron - Sickles

F HB2705

Motor fuels tax. Increases the motor fuels tax by $0.07 per gallon. The bill is effective January 1 of the year immediately following the year in which a constitutional amendment is adopted at a statewide referendum that prohibits the use of funds in the Transportation Trust Fund for any purpose other than transportation.
Patron - Sickles

F HB2706

Individual income tax; age deduction. Provides a $6,000 individual income tax deduction in 2005 and 2006 for any person who turned 62 during calendar year 2004. Under current law, a person would have had to turn 62 by January 1, 2004, to be eligible for the $6,000 age deduction.
Patron - Sickles

F HB2719

Secrecy of tax information; sharing information with the Department of Medical Assistance Services. Allows the Tax Commissioner to share otherwise confidential information from a state tax return with the Director of the Department of Medical Assistance Services, to the extent that the person filing the return has requested to receive information concerning children's health insurance programs. The Tax Commissioner may only share the information necessary to contact those individuals. The Director of the Department of Medical Assistance Services will be subject to the general confidentiality provisions for tax information set forth in this section once he is in receipt of the contact information.
Patron - Miller

F HB2743

Sales and use taxes from watercraft; City of Hampton. Dedicates for recreational and environmental projects in the City of Hampton 2 percent of the 3.5 percent state general sales tax revenues and all of the watercraft sales tax revenues from the sales of boats taking place in the City and from sales made by boating businesses located in the City, which revenues are in excess of such revenues actually collected during the Commonwealth's fiscal year ending June 30, 2003.
Patron - Ward

F HB2750

Virginia Estate Tax. Exempts from tax certain estates if a majority of the assets of the total estate are represented by an interest in a closely held business or a working farm as defined in the act. Also, the bill exempts estates of less than $10 million. Estates in excess of $10 million would pay a tax of only 75 percent of the amount of the federal estate tax credit. This bill has been incorporated into HB 1490.
Patron - Hall

F HB2759

Commercial and industrial sales and use tax exemption; emergency medical service providers. Provides a sales and use tax exemption for parts, tires, and dispatch radios purchased for emergency medical service providers.
Patron - Nutter

F HB2769

Individual income tax; personal exemption. Increases the personal exemption amount from $900 to $1,000 for taxable years beginning on and after January 1, 2006. This bill has been incorporated into HB 1717.
Patron - Nutter

F HB2789

Local meals tax; Washington County. Adds Washington County to those counties that are authorized to impose a meals tax up to four percent upon a public hearing and unanimous approval by the local governing body of the locality. In general, counties may impose a local meals tax upon approval by referendum. However, several counties have been authorized to impose a meals tax upon a public hearing and unanimous approval by the local governing body.
Patron - Johnson

F HB2811

Individual income tax; distribution to localities. Requires the distribution of 25 percent of income tax revenues collected from employees of new business enterprises back to the localities in which the enterprises are located. Distributions will continue for 10 years or as long as the business remains in the locality, whichever is less.
Patron - Cosgrove

F HB2817

State transient occupancy tax; Coalfield region. Imposes a three percent state transient occupancy tax in the region comprised of Buchanan County, Dickenson County, Lee County, Russell County, Scott County, Tazewell County, Wise County, and the City of Norton. All revenues generated by the tax shall be paid to the Virginia Coalfield Regional Tourism Development Authority and used solely for the purpose of promoting tourism and travel in the region.
Patron - Phillips

F HB2819

Virginia Coal Employment and Production Incentive Tax Credit. Extends the sunset of the Virginia Coal Employment and Production Incentive Tax Credit to tax years beginning on and after January 1, 2009. The credit is currently set to expire for all tax years on and after January 1, 2005.
Patron - Phillips

F HB2861

Return of local surplus funds. Allows any locality to develop a method for returning surplus real property tax revenues to taxpayers who are assessed real property taxes in any fiscal year in which the locality reports a surplus. Currently, this authority is granted to Albemarle County. This bill has been incorporated into HB 2662.
Patron - Black

F HB2864

Individual income taxes; credit for health insurance and health savings accounts. Provides a credit against individual income taxes for health insurance premiums and health savings account contributions paid by an individual for himself or his dependents during the taxable year. The amount of the annual credit is the least of (i) the actual premiums and contributions paid in the taxable year, (ii) $1,000, or (iii) the individual's income tax liability for the taxable year. This bill has been incorporated into HB 2600.
Patron - Byron

F HB2873

Individual income tax; tax credit for contributions to candidates running for office. Increases from $25 to $50 for single filers and from $50 to $100 for joint filers the maximum annual amount that may be claimed as tax credit for contributions to candidates running for office.
Patron - Dillard

F HB2886

Master Settlement Agreement; deductibility of escrow funds. Provides that the funds nonparticipating manufacturers are required to deposit into escrow pursuant to the Master Settlement Agreement are tax deductible if the manufacturer agrees to (i) release all escrowed funds to the state permanently; or (ii) accept in refund the escrow deposited less an amount commensurate to the tax deductions taken.
Patron - Albo

F HB2889

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.
Patron - Hull

F HB2893

Promoting telecommuting; Commonwealth Telework Council; income tax. Establishes the Commonwealth Telework Council to advise Governor on guidelines for telecommuting and participation in alternative work schedules. The Council expires on July 1, 2007.
Patron - Scott, J.M.

F HB2914

Income tax; Public/Private Education Investment tax credit. Provides tax credits to businesses and individuals who make contributions to public school foundations and scholarship foundations. The tax credit for a business entity is an amount equal to 25 percent of the contribution to a nonprofit education foundation (public school foundations and scholarship foundations). For individual taxpayers the tax credit is an amount equal to 25 percent of the contribution to a nonprofit education foundation, or the total education expenses paid by the taxpayer for a student who is claimed as a dependent by the individual taxpayer. The amount for the individual taxpayer shall not exceed $800 annually or $1,200 for those filing a joint return. The credit would be applicable to taxable years beginning on and after January 1, 2006.
Patron - Saxman

F HB2933

Cigarette tax; deduction of bad debts from taxes owed. Permits stamping agents to receive a credit for the cost of the tax stamps on cigarettes they have sold but for which payment is uncollectible.
Patron - O'Bannon

F SB694

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 are: school supplies, footwear, and clothing 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 five 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.
Patron - Reynolds

F SB698

Income tax deduction; materials used for teaching. Provides an income tax deduction for teachers in the Commonwealth for the costs of teaching materials and supplies that are purchased by a teacher and for which the teacher is not reimbursed. The deduction shall not exceed $500, and shall not apply if the teacher claimed a deduction for the costs on his federal income tax return. The Department of Taxation is directed to develop guidelines for materials that would qualify for the deduction.
Patron - Potts

F SB709

Sales and use tax payments. Eliminates the additional June payment for sales and use taxes required of dealers with taxable sales and purchases of $1.3 million or greater. This bill contains an emergency clause and incorporates SB 872 and SB 1010.
Patron - Chichester

F SB720

Food and beverage tax levy without referendum; Giles County. Permits Giles County to levy a food and beverage tax by adoption of local ordinance, instead of by referendum.
Patron - Edwards

F SB734

Income taxes; payments to producers of quota tobacco and tobacco quota holders. Provides a subtraction from income 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.
Patron - Reynolds

F SB736

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.
Patron - Reynolds

F SB737

Tangible personal property tax relief. Amends the personal property tax relief program effective January 1, 2006, by (i) providing that reimbursements to localities will be paid in 12 equal monthly installments beginning with the month of May each year, (ii) requiring localities to provide personal property tax relief on qualifying vehicles in an equitable manner, and (iii) providing that the Comptroller shall determine reimbursement payments to localities no later than April 30, 2006. Under current law, (i) reimbursement payments to localities shall be made over the 12-month period beginning with the month of July, (ii) localities are required to provide personal property tax relief through one or more tax rates that are lower than the tax rate applicable to the general class of tangible personal property, and (iii) the Comptroller shall determine reimbursement payments to localities no later than March 1, 2006.
Patron - Reynolds

F SB751

Sales and use taxes, food purchased for human consumption. Provides that the retail sales and use tax on food purchased for human consumption shall be imposed at a rate of 2.5 percent on and after July 1, 2005 (1.5 percent state and 1 percent local). Current law provides that the sales and use tax on food shall be imposed at a rate of 3.5 percent beginning July 1, 2005; 3 percent beginning July 1, 2006; and 2.5 percent beginning July 1, 2007. The bill accelerates the tax relief. This bill has been incorporated into SB 708.
Patron - Edwards

F SB755

Local meals tax; Washington County. Adds Washington County to those counties that are authorized to impose a meals tax up to four percent upon a public hearing and unanimous approval by the local governing body of the locality. In general, counties may impose a local meals tax upon approval by referendum. However, several counties have been authorized to impose a meals tax upon a public hearing and unanimous approval by the local governing body. The bill also makes corrections to the technical changes made in the 2004 Session that replaced indirect references to counties (e.g. population brackets) with the names of the counties for the transient occupancy taxes and the food and beverage taxes. Specifically, the bill adds counties that had grown into population brackets before the technical changes became effective, and are imposing the tax.
Patron - Wampler

F SB759

Sales and use taxes from watercraft; City of Hampton. Dedicates for recreational and environmental projects in the City of Hampton 2 percent of the 3.5 percent state general sales tax revenues and all of the watercraft sales tax revenues from the sales of boats taking place in the City and from sales made by boating businesses located in the City, which revenues are in excess of such revenues actually collected during the Commonwealth's fiscal year ending June 30, 2003.
Patron - Locke

F SB769

Individual income tax deductions; Internal Revenue Code § 529 qualified tuition programs. Provides the same income tax deductions that are currently available for contributions to the Virginia College Savings Plans to contributions to any other tuition program that qualifies under § 529 of the Internal Revenue Code.
Patron - Bell

F SB781

Reimbursement of tangible personal property taxes. Provides that a locality's share of the reimbursement from the Commonwealth for personal property tax relief will be determined based on the total billings of the locality for the calendar year 2005 as compared to the total billings of all localities for the same calendar year.
Patron - Mims

F SB872

Sales and use tax payments. Eliminates the additional June payment for sales and use taxes required of dealers with taxable sales and purchases of $1.3 million or greater. This bill has been incorporated into SB 709.
Patron - Cuccinelli

F SB907

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. Under current state law the amount of Virginia estate tax cannot be less than the federal credit under federal law as federal law existed on January 1, 1978. Because under current federal law there is no federal estate tax credit for state estate taxes, the bill effectively eliminates the Virginia estate tax.
Patron - Norment

F SB917

Sales and use tax exemption; commercial and industrial exemptions. Provides a sales and use tax exemption for personal property purchased by a contractor and used solely in any construction project for a local school division.
Patron - Blevins

F SB920

Local recordation fee. Allows cities and counties to impose a fee not to exceed $250 on certain recorded instruments that are subject to the state recordation tax. The fee will be paid by the grantor and will only be allowed in localities having a growth rate in K through 12 school-age population of one-half percent over the previous three years combined growth rate. Also, affordable housing is exempt from the fee. The revenues generated by the fee are to be used by the locality for public school capital projects.
Patron - Blevins

F SB946

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 four-day period each year beginning on the Friday before the first Monday in September. 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.
Patron - Puckett

F SB1010

Sales and use tax payments. Eliminates the additional June payment for sales and use taxes required of dealers with taxable sales and purchases of $1.3 million or greater. This bill has been incorporated into SB 709.
Patron - Hanger

F SB1011

Property taxes; generating equipment of electric suppliers. Provides that generating equipment of electric suppliers utilizing wind turbines shall be taxed at a rate or rates that when applied to assessed value would generate an amount of revenue approximately equal to $3,000 per megawatt of the nameplate production capacity. The bill has an effective date of January 1, 2006.
Patron - Hanger

F SB1028

Sales and use tax exemption; school-related items and clothing. Beginning in 2005, provides a sales and use tax exemption for certain school-related items purchased during a specific three-day period toward the end of August each year. The exempt items are school supplies, footwear, and clothing where the selling price of each item is $100 or less.
Patron - Newman

F SB1038

State cigarette tax; distribution of revenues. Provides that one cent of the 30 cents per pack cigarette tax effective July 1, 2005, shall be deposited into the Uninsured Medical Catastrophe Fund. Currently, all of the revenue from the state cigarette tax is deposited into the Virginia Health Care Fund.
Patron - Ruff

F SB1041

Income tax; employer provided long-term care insurance tax credit. Grants an income tax credit to business taxpayers that provide long-term care insurance for employees. The annual credit allowed is 10 percent of the costs of the long-term care insurance premiums but no more than (i) a total of $5,000 or (ii) $100 per employee, whichever is less.
Patron - Lambert

F SB1042

Local real estate tax exemption and deferral programs. Authorizes localities to establish a sliding scale for the total combined income and net combined financial worth limitations based upon the number of years the qualifying owner resided in the locality and paid real estate taxes.
Patron - Quayle

F SB1046

Local business license fees and taxes. Requires localities to impose the flat license fees now authorized by current law on all businesses or no businesses. If such fees are imposed, then in calculating any license tax that is imposed on gross receipts, the locality must deduct from such gross receipts the threshold amount of gross receipts on which it imposes the tax.
Patron - Wagner

F SB1099

Sales tax on motor fuels. Increases from two to four percent the sales tax on fuels in every county or city situated in the Northern Virginia Transportation District.
Patron - Whipple

F SB1102

Transient occupancy tax; Arlington County. Extends to January 1, 2009, the time during which Arlington County may collect an additional transient occupancy tax of one-fourth of one percent. Current law would end the collection of the additional tax on January 1, 2006.
Patron - Whipple

F SB1116

Sales and use tax exemption; telecommunications companies. Effective July 1, 2006, restores the sales and use tax exemption for telecommunication companies that was eliminated in the 2004 Special Session I.
Patron - Norment

F SB1126

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, 2005, and is limited to low income taxpayers in counties with a population 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.
Patron - Obenshain

F SB1135

Streamlined Sales and Use Tax Agreement. Conforms the Commonwealth's sales and use tax laws to the provisions of the Streamlined Sales and Use Tax Agreement.
Patron - Hanger

F SB1137

Local cigarette taxes. Allows counties to impose a local cigarette tax at the state cigarette tax per pack, which is $0.30 per pack on and after July 1, 2005. The cigarette tax imposed by a city or town shall not exceed $0.30 per pack, unless the city or town had a higher rate in effect on December 1, 2004, in which case the city or town may impose a cigarette tax at that rate but not higher.
Patron - Hanger

F SB1138

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. Under current state law the amount of Virginia estate tax cannot be less than the federal credit under federal law as federal law existed on January 1, 1978. Because under current federal law there is no federal estate tax credit for state estate taxes, the bill effectively eliminates the Virginia estate tax.
Patron - Hanger

F SB1142

Recordation taxes; transfer to Virginia Water Quality Improvement Fund. Provides that $20 million of recordation taxes collected each year shall be transferred to the Virginia Water Quality Improvement Fund. The Comptroller shall credit the $20 million to the Fund after allocations have been made for the $40 million deposit to the U.S. Route 58 Corridor Development Fund and the $40 million distribution to counties and cities, as currently required under law.
Patron - Hanger

F SB1186

Individual income tax; age deduction. Provides a $6,000 individual income tax deduction in 2005 and 2006 for any person who turned 62 during calendar year 2004. Under current law, a person would have had to turn 62 by January 1, 2004, to be eligible for the $6,000 age deduction.
Patron - Puller

F SB1193

Sales and use taxes, reduction of rate on food purchased for human consumption. Provides that the retail sales and use tax on food purchased for human consumption shall be imposed at a rate of 2.5 percent on and after July 1, 2005 (1.5 percent state and 1 percent local). Current law provides that the sales and use tax on food shall be imposed at a rate of 3.5 percent beginning July 1, 2005; 3 percent beginning July 1, 2006; and 2.5 percent beginning July 1, 2007. The bill accelerates the tax relief. This bill has been incorporated into SB 708.
Patron - Potts

F SB1204

Cigarette excise tax. Imposes an excise tax on cigarette manufacturers at a rate of $0.02 for each of the manufacturer's cigarettes sold in the Commonwealth. A cigarette manufacturer may claim as credit against any excise tax due (i) the Commonwealth's share of the manufacturer's contributions under the Master Settlement Agreement or (ii) for nonparticipating manufacturers, the net escrow deposits made each year for the manufacturer's cigarettes sold in the Commonwealth. The tax shall be effective beginning with the 2005 calendar year.
Patron - Mims

F SB1224

Personal property tax relief. Eliminates reimbursement payments from the Commonwealth to local governments for providing tangible personal property tax relief on personal-use motor vehicles, and provides for tangible personal property tax relief on such motor vehicles by reducing the state retail sales and use taxes and permitting counties and cities that provide tangible personal property tax relief as authorized to increase their local sales and use tax rate. Subject to the passage of a Constitutional amendment, the bill permits local governments to exempt from tangible personal property tax up to the first $20,000 of market value of personal-use vehicles. A county or city that exempts between $7,000 and $14,000 of value may increase its local sales and use tax rate from one percent to one and one-half percent, and a county or city that exempts the first $14,000 of value may increase its local sales and use tax rate from one percent to two percent. The additional sales and use tax shall not apply to food purchased for human consumption. Any town providing personal property tax relief that is located in a county that provides personal property tax relief shall share in any additional sales and use tax revenues. The state retail sales and use tax is reduced from four percent to three percent to account for the potential one percent increase in the local retail sales and use tax. The bill is effective January 1, 2008.
Patron - Bell

F SB1239

Income tax deduction; materials used for teaching. Provides an income tax deduction for teachers for the costs of teaching materials, computer equipment, and supplies that are purchased by the teacher and for which the teacher is not reimbursed. The deduction shall not exceed $250 per year and shall not apply if the teacher claimed a deduction for the costs on his federal income tax return. The Department of Taxation is directed to develop guidelines for materials that would qualify for the deduction.
Patron - Potts

F SB1244

Individual income tax; tax credit for contributions to candidates running for office. Increases from $25 to $50 for single filers and from $50 to $100 for joint filers the maximum annual amount that may be claimed as tax credit for contributions to candidates running for office.
Patron - Devolites Davis

F SB1255

Income tax; tax credit for health insurance premiums and health saving accounts contributions paid by employers. Provides a tax credit to employers who pay at least one-half of the annual health insurance premium per employee or make contributions equal to one-half of an employee's health savings accounts. The amount of the credit is the lesser of $500 or the amount paid per employee. In addition, a credit equal to the lesser of $100 or the amount paid for the health insurance premium for one dependent of each employee shall be allowed to employers. The credits are available to employers with 50 or fewer full-time employees.
Patron - Lambert

F SB1263

Income tax; tax credit for certain health care practitioners. Provides an income tax credit to health care practitioners who provide free medical services to indigent persons. The amount of the credit is equal to 25 percent of the fee the practitioner would charge for the service, not to exceed $3,000 annually for any practitioner. The credit would be available for taxable years beginning on or after January 1, 2006.
Patron - Potts

F SB1303

Tax information; confidentiality exception. Provides an exemption to the general prohibition on the disclosure of tax information for General Assembly members who seek tax information regarding a constituent at the request of the constituent.
Patron - Bolling

F SB1325

Transportation. Beginning with the 2006-2007 fiscal year dedicates all revenues from the insurance license tax on automobile premiums to the Priority Transportation Fund. The bill repeals the dedication of one-third of the revenues from the license tax on insurance companies to the Priority Transportation Fund effective July 1, 2005. The bill also provides that all moneys in the Commonwealth Transportation Fund, Transportation Trust Fund, and the Highway Maintenance and Operating Fund shall be used for transportation-related purposes and that moneys designated for deposit into the general fund shall not be used for transportation with limited exceptions. This bill has been incorporated into SB 1324.
Patron - Chichester

F SB1335

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% on the following: Local Exchange Paging Inter-Exchange Cable Television (Both Interstate and Intrastate) Satellite Television Wireless 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: Local Consumer Utility Tax (LCUT) Local Gross Receipts Tax (BPOL) - (Only the portion above 0.5% currently billed to customers, where applicable) Local E-911 Virginia Relay Fee 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 who 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 § 56-468.1 (I). 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.
Patron - O'Brien

CONTENTS | < PREVIOUS | NEXT > | BILL INDEX


General Assembly>Division of Legislative Services>Publications>Session Summaries>2005>Taxation

© 2005 Division of Legislative Services.

E-mail Webmaster