Joint Subcommittee to Study and Revise Virginia's State Tax Code

HJR 60 (2002)
HJR 685/SJR 387 (2001)

July 30, 2002

Task Force #2

Task Force #2 held its third meeting on July 30, 2002 at 10:00 am.

The committee’s meeting began with comments from Delegate McDonnell regarding future meetings and public hearings. Delegate McDonnell reminded attendees that Task Force #1 and Task Force #2 will meet on August 19, 2002. The Joint Subcommittee will meet on September 12 at 10:00 am and September 30 at 1:00 pm. Public hearings across the state will begin in October.

Laurie Peterson, Vice President and Director of Membership for the Virginia Retail Merchants Association, gave a presentation on the Accelerated Sales Tax Collections. Task Force members requested additional information on the policies and procedures of other states related to sales tax collections.

Donna Reynolds, Director of Community Relations for the American Lung Association of Virginia presented information on nationwide cigarette tax statistics, including tax increases nationwide.

Steve Pearson, Esq., representing various commercial property owners, gave a presentation on the Real Estate Tax Appeals Process. Mr. Pearson presented information from a working group which included assessors, assistant county attorneys and representatives from the Virginia Municipal League and the Virginia Association of Counties. Following Mr. Pearson’s presentation, Delegate McDonnell appointed Delegate Griffith to work with the group on the real estate tax appeals process.

Stuart Fleming, a citizen from the Newport News area, gave personal testimony regarding the equalization process in the Newport News area.

Staff made a presentation regarding the BPOL Task Force.

Staff presented follow-up items from the Task Force #2 meeting (June 26). The items included the following:

  1. Taxpayer appeals and "pay to play" provisions. Delegate McDonnell asked Delegate Johnson to work with Tax Commissioner Ken Thorsen on the feasibility of i) an independent hearing examiner and ii) prepayment for appeals.

  2. Estimated revenues from a statewide 1% local individual income tax. (presented by Virginia Department of Taxation)

  3. Impact of the increasing federal taxable estate threshold and options for repealing the Virginia estate tax. (presented by Virginia Department of Taxation)

  4. General fund dollars spent on transportation.

  5. Projected additional revenue from increasing the motor vehicle, aircraft, and watercraft sales and use taxes.

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