General Assembly>Division of Legislative Services>Publications>Session Summaries>2003>Taxation

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Taxation

Passed

P HB1558

Local consumer utility tax. Allows the local governing bodies of the Towns of Gordonsville, Colonial Beach and Montross to impose the local consumer utility tax by adopting a local ordinance on or after July 1, 2003. When such ordinance is adopted, the county in which such town is located may no longer impose the tax within the limits of the town.
Patron - Broman

P HB1564

Lottery; voluntary assignment of prizes or pledge as collateral. Allows winners of the lottery to assign or pledge as collateral for a loan lottery prizes that are payable in installments over time, excluding prizes payable for the winner's life.
Patron - Callahan

P HB1576

Fraudulent tax return; penalty. Changes the penalty from a Class 1 misdemeanor to a Class 6 felony for an individual who, with the intent to defraud the Commonwealth, makes a false statement on an income tax return and for an officer of a corporation who makes a fraudulent return or statement with intent to evade the payment of taxes.
Patron - Parrish

P HB1577

Motor fuels tax. Makes several technical changes relating to licensees and their reporting/filing requirements with the Department of Motor Vehicles.
Patron - Parrish

P HB1624

Individual income tax; subtraction for military death gratuity payments. Allows a subtraction for the amount of military death gratuity payments made to survivors of military personnel who are killed in the line of duty when calculating Virginia taxable income. The subtraction only applies to payments received after September 11, 2001. Such subtraction amount must be reduced by the amount that is allowed as an exclusion from federal gross income to the survivor on his federal income tax return. Under current law, Virginia exempts $3,000 and the federal military death gratuity payment is $6,000. With this change, the additional $3,000 will be exempt.
Patron - Cox

P HB1630

Refund of taxes erroneously collected or paid. Allows a refund to a claimant who pays a tax, either for the claimant or for the benefit of another on whose behalf the tax is paid, if he makes a sufficient showing that the tax was erroneously collected by providing an affidavit that (i) the vehicle identification information provided on the Application for Certificate of Title and Registration, the certificate of origin, manufacturer's statement of origin, or title was incorrect, or (ii) the transaction would have been exempt from taxation.
Patron - Cosgrove

P HB1635

Income tax; voluntary contribution of tax refund to Virginia Federation of Humane Societies, and others. Creates three additional income tax checkoffs beginning January 1, 2004, and ending January 1, 2009, for individuals to contribute all or part of their income tax refunds to the Virginia Federation of Humane Societies, the Tuition Assistance Grant Fund, and the Spay and Neuter Fund. This bill incorporates HBs 2326 and 2355.
Patron - Morgan

P HB1673

Assessment of substantially completed buildings. Allows the City of Fairfax (described by population) to provide by ordinance that all new buildings shall be assessed when substantially completed or fit for use and occupancy, regardless of the date of completion or fitness. This authority currently applies only to Fairfax County.
Patron - Petersen

P HB1750

Property tax exemptions. Specifies the process localities must follow to exempt from real or personal property taxes the property of certain charitable and other related organizations. The legislation stemmed from the constitutional amendment that took effect on January 1, 2003, giving localities the authority to grant such exemptions subject to restrictions and conditions set by the General Assembly. The bill has an emergency effective date of January 1, 2003.
Patron - Parrish

P HB1754

Sales and use tax exemptions; omnibus extension bill. Extends the sunset date to July 1, 2004, for numerous sales and use tax exemptions. This bill is identical to SB 742 and incorporates HBs 1537, 1713, 1755, 1867, and SB 862.
Patron - Parrish

P HB1913

Individual income tax; refund checkoff for Historic Resources Fund. Extends the sunset date from January 1, 2004, to January 1, 2009, for the refund checkoff for the Historic Resources Fund.
Patron - Almand

P HB1914

Income tax; foreign source income. Eliminates the subtraction for foreign source income for individuals when calculating their taxable income, for taxable years beginning on or after January 1, 2003.
Patron - Almand

P HB1932

Local business taxes; appeals. Requires the Tax Commissioner to determine within 30 days whether he has jurisdiction to hear an appeal of certain local business taxes, and restricts to 60 days the additional time (i.e., in addition to 90 days from the receipt of the appeal) within which the Tax Commissioner must make a final determination on the merits of the appeal when he does have jurisdiction; unless additional time is needed because an affected party fails to supply necessary information, in which case, the Tax Commissioner shall issue his determination within 60 days of receipt of such information.
Patron - Nixon

P HB2045

Local taxation; lower rate for admissions tax on certain events. Allows any city or town that imposes the admissions tax to impose the tax at a lower rate on any event held in facilities that are not owned by the city or town than that which is imposed on events held in city- or town-owned civic facilities.
Patron - Woodrum

P HB2056

Special land use assessment. Permits localities to make land used for engaging in acquaculture or specialty crops may be eligible for local-option special agriculture land use assessments even if such land is less than the five acre minimum ordinarily applicable to agricultural or horticultural property.
Patron - Cole

P HB2089

Food and beverage tax and meals tax; embezzlement. Provides that the wrongful and fraudulent use of collected food and beverage tax or meals tax constitutes embezzlement under the criminal embezzlement statute.
Patron - Joannou

P HB2277

Conveyance of real estate for delinquent taxes or certain liens. Provides that real estate for which there are delinquent taxes may be conveyed to the locality if the real estate has a value of $20,000 or less and such taxes alone exceed 25 percent of the value of the real estate. This bill is identical to SB 735.
Patron - Hurt

P HB2323

Real estate tax; situs for assessment of motor vehicles. Clarifies that the situs for assessment purposes of business vehicles is the locality in which the business' owner has a definite place of business and in which he directs or controls the use of such vehicles, provided he has sufficient evidence that he has paid the tax to such locality. This bill is identical to SB 1033.
Patron - Drake

P HB2351

Withholding tax filing; electronic funds transfer. Requires any firm that files withholding taxes on behalf of 100 or more taxpayers to remit such withholding payments via electronic funds transfer using automatic clearinghouse credit transactions. This bill is identical to SB 833.
Patron - Hull

P HB2400

Individual income tax; subtraction for the Peanut Quota Buyout Program. Allows individuals and corporations who receive payments in accordance with the Peanut Quota Buyout Program of the Farm Security and Rural Investment Act of 2002 to subtract such payments when calculating their Virginia taxable income. The bill is retroactive to January 1, 2002, and has an emergency clause.
Patron - Ingram

P HB2454

Virginia Tax Amnesty Program. Authorizes the State Tax Commissioner to operate a tax amnesty program during the 2004 fiscal year. The program would be open to any individual, corporation, estate, trust or partnership required to but that has failed to file a return or to pay any tax administered by the Department of Taxation. All civil or criminal penalties assessed or assessable and one-half of the interest assessed or assessable, resulting from nonpayment, underpayment, nonreporting or underreporting of tax liabilities will be waived upon payment of the taxes and interest. This bill is identical to SB 1030.
Patron - Parrish

P HB2455

Income tax; conformity of terms to the Internal Revenue Code. Selectively deconforms Virginia's tax code to the Internal Revenue Code (IRC) by advancing the fixed-date conformity by one year. Virginia will conform to all provisions of the IRC except the special 30-percent bonus depreciation and the five-year net operating loss carry-back for certain losses. This bill is identical to SB 1049.
Patron - Parrish

P HB2456

Virginia Fuels Tax Refunds. Requires the Department of Motor Vehicles to provide an explanation to the applicant if the refund amount requested differs from the amount actually paid.
Patron - Parrish

P HB2490

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 is identical to SB 1123.
Patron - Tata

P HB2503

Real estate appeals to Boards of Equalization and circuit court. Makes several changes to the current process for appealing real estate assessments. For purposes of appeals to a board of equalization, the bill provides that there shall be a presumption that the valuation of real estate as determined by the local assessing officer is correct, and the taxpayer must produce substantial evidence that the valuation of his real estate is erroneous and was not arrived at in accordance with generally accepted appraisal practice in order to receive relief from the board. The bill does not change current law in regard to the burden of proof and standard of proof that a taxpayer must produce in circuit court.The bill permits taxpayers to make fair market value appeals to a board of equalization. It also limits to nine the number of years of consecutive service that a person may sit as a member of a board of equalization. Thirty percent of the members of boards of equalization shall be commercial or residential real estate appraisers, other real estate professionals, builders, developers, or legal or financial professionals, and at least one member shall sit in all appeals involving commercial, industrial or multi-family residential property, unless waived by the taxpayer. The bill also requires each member of a board of equalization to take continuing education instruction at least once in every four years of service as a member of such board.The bill provides a three-year statute of limitations for appealing real estate tax assessments to all circuit courts. In general, there is a three-year statute of limitations under current law; however, in some localities there is a one-year statute of limitations pursuant to specific law. In those localities with the one-year statute of limitations, the new three-year requirement will be phased in over several years. The bill has an effective date of January 1, 2004.
Patron - Griffith

P HB2525

Sales and use tax; exemptions for nonprofit entities. Alters the procedures for granting sales and use tax exemptions to nonprofit entities in conformity with recommendations of the Joint Subcommittee to Study and Revise Virginia's State Tax Code (HJR 685/SJR 387, 2001; HJR 60, 2002) by giving the Department of Taxation the administrative duty to grant such exemptions according to certain broad criteria established by the bill. The bill has a delayed effective date of July 1, 2004. This bill is identical to SB 743.
Patron - Orrock

P HB2537

Motor vehicle sales and use tax; casual sales. Allows, in the case of a sale of a motor vehicle, which is not a new motor vehicle, between individuals who are not required to be licensed as dealers or salespersons, the Commissioner to collect the motor vehicle sales tax on the basis of the total sales price as established by evidence required by the Commissioner. However, if the auto is no more than five years old and is listed in a recognized pricing guide, then the trade-in value listed in such guide less $1,500 shall be used unless the purchaser executes an affidavit stating a lesser value, which shall be used for sales tax purposes.
Patron - Louderback

P HB2538

Tax administration; application to court for correction of state tax assessment. Eliminates the current requirement that a taxpayer must pay the assessment in order to appeal to the circuit court. The Tax Commissioner would be authorized to petition the court to require the taxpayer to pay upon a showing that the Department is likely to prevail on the merits of the case. If the court grants such motion by the Tax Commissioner, the taxpayer must pay the assessment, post a bond, or offer a letter of credit.
Patron - Louderback

P HB2554

Income tax; subtraction for payments received by contract poultry growers and table egg producers. Allows a subtraction to contract poultry growers and table egg producers for indemnification payments received from the U.S. Department of Agriculture as a result of the depopulation of poultry flocks because of low pathogenic avian influenza in 2002. The deduction is allowed for taxable years beginning on and after January 1, 2002, but before January 1, 2005. This bill is identical to SB 1026.
Patron - Landes

P HB2656

Local warrant books; limits on release of information. Allows treasurers to limit the information released from the list of warrants only for use in establishing the status of a claim previously reported as paid when a person legally entitled to the funds provides evidence that such claim has not been paid.
Patron - Ingram

P HB2659

Collection of local taxes. Provides for an extension of time on the local treasurer's administrative remedies (lien, distress) where the tax due has been reduced to judgment. Currently, the time limitations do not effect a judgment lien so the local treasurer may continue to collect during the time the lien is valid.
Patron - Johnson

P HB2726

Property tax; certified pollution control equipment and facilities. Adds any equipment used to grind, chip, or mulch trees, tree stumps, underbrush, and other vegetative cover for reuse as mulch, compost, or fuel to the definition of certified pollution control equipment and facilities for property tax classification purposes. Such equipment shall not be exempt from sales and use taxes unless the equipment has been certified by the proper state authority as pollution control equipment.
Patron - Ware

P HB2799

Northern Virginia Transportation District Program. Designates one additional project to be financed by bonds authorized to be issued for certain projects in the Northern Virginia Transportation District Program and reduces the funding for another project by an equal amount.
Patron - Scott

P HB2827

Sales and Use Tax; Food Tax Reduction Program. Eliminates a fund that was never used and provisions that were enacted because the Northern Virginia and Hampton Roads sales tax for transportation referendums are now unnecessary.
Patron - Hull

P HB2828

Virginia Individual Income Tax. Deletes obsolete language.
Patron - Hull

P SB722

Transient occupancy tax. Authorizes Cumberland County, King George County, and Prince Edward County to levy a transient occupancy tax at the rate of five percent. Any revenues attributable to the portion of the tax greater than two percent shall be spent for promoting tourism, travel or business that generates tourism or travel in the county.
Patron - Chichester

P SB735

P SB742

Sales and use tax exemptions; omnibus extension bill. Extends the sunset date for numerous sales and use tax exemptions. This bill is identical to HB 1754 and incorporates HBs 1713, 1755, 1867, and SB 862.
Patron - Miller, K.G.

P SB743

P SB809

Motor vehicle sales and use tax. Provides an exemption from the motor vehicle sales and use tax for vehicles titled in the name of a deceased person and transferred to the spouse or heir, or under the will, of such deceased person.
Patron - Stolle

P SB833

P SB854

Gross premium license tax on insurance companies. Specifies that penalties owed for failure to pay license taxes timely are due within 14 days of the date of the notice to the delinquent insurer. If such additional amounts are not paid when due, the State Corporation Commission may suspend or revoke the insurer's license. The measure also provides for refunds of overpayments of penalties, and defines the terms "preceding year's tax" and "tax."
Patron - Stosch

P SB858

Telecommunications taxes; taxation of bundled transactions. Allows nontaxable services to continue to be nontaxable when bundled with taxable communications services if the provider can identify the nontaxable portion from its books and records. In addition, if the services are taxable at different rates, they will not be taxed at the highest rate if the provider again can identify the services subject to a lower rate from its books and records.
Patron - Stosch

P SB859

Enterprise zone business tax credit. Adds a definition for "high investment/limited job creation qualified business firms" for purposes of enterprise zone tax credits. Such a firm is a qualified business firm making qualified zone investments of $50 million or more but creating fewer than 50 permanent full-time positions. Such firms shall be allowed a business tax credit provided (i) the amounts shall not exceed those allowed to small qualified business firms, and (ii) the credit amount shall not exceed the amount recovered by the Commonwealth through revenues generated from new state income tax collections resulting from the new, permanent full-time positions within a five-year period. The bill is effective for taxable years beginning on and after January 1, 2003.
Patron - Stosch

P SB935

Change in filing date; nonprofit corporations. Changes the income tax report filing date for nonprofit corporations with unrelated business taxable income from the fifteenth day of the fourth month following the close of the taxable year to the fifteenth day of the sixth month following the close of the taxable year. Applies to taxable years beginning on or after January 1, 2003.
Patron - Edwards

P SB956

Sales of cigarettes; penalties. Revises and graduates penalties for the illegal use of Virginia cigarette revenue stamps. The bill allows seizure and forfeiture of counterfeit cigarettes, stamps and related equipment and property and authorizes enforcement of the provisions by the Attorney General. The bill also imposes requirements for delivery sales to consumers. The requirements relate to minimum age verification, disclosure, shipping, registration and reporting and tax collection. The Attorney General is authorized to enforce the delivery sale requirements, and the penalties are fines, forfeitures and, if the violation is made knowingly, civil penalties of up to $50,000.
Patron - Stosch

P SB1026

P SB1030

P SB1033

Real estate tax; situs for assessment of motor vehicles. Clarifies that the situs for assessment purposes of business vehicles is the locality in which the business owner has a definite place of business and from which place he controls or directs the use of the vehicles, provided he has sufficient evidence that he has paid the tax to such locality. This bill is identical to HB 2323.
Patron - Colgan

P SB1049

Income tax; conformity of terms to the Internal Revenue Code. Selectively deconforms Virginia's tax code from the Internal Revenue Code by deconforming from the special 30-percent bonus depreciation and the five-year net operating loss carry-back for certain losses provided in the Job Creation and Worker Assistance Act of 2002, P. L. 107-147. The bill applies to taxable years beginning on or after January 1, 2001. This bill contains an emergency clause and is identical to HB 2455.
Patron - Hanger

P SB1095

City of Roanoke real estate tax rates. Authorizes the City of Roanoke to impose a tax rate on improvements to real property that is equal to or less than the City's tax rate on the land upon which the improvements are located. The City of Fairfax has been given this same authority effective July 1, 2003.
Patron - Edwards

P SB1096

Income tax; voluntary contribution of tax refund to the Virginia Commission for the Arts. Creates an additional income tax checkoff beginning January 1, 2004, and ending January 1, 2009, for individuals to contribute all or part of their income tax refunds to the Virginia Commission for the Arts.
Patron - Edwards

P SB1123

P SB1125

Income tax returns of affiliated corporations. Provides that a group of affiliated corporations may change from filing (i) a consolidated return to separate returns or (ii) separate or combined returns to a consolidated return, provided that the affiliated group has filed on the same basis for at least the preceding 20 years. Permission shall be granted if (i) for the taxable year immediately preceding the taxable year of such change, there would have been no decrease in tax liability computed under the proposed change and (ii) the affiliated group or corporations agrees to file returns computing its income tax liability under both the new filing method and the former method and to pay the greater of the 2 amounts for the taxable year in which such change is effective and for the immediately succeeding taxable year.
Patron - Stosch

P SB1183

Real property tax; installment agreements to pay delinquent taxes. Eliminates the requirement under current law for the recording of installment agreements between local officers and owners of real property for the payment of delinquent real estate taxes.
Patron - Puckett

P SB1227

Local taxes; administrative fees to collect delinquent taxes or other delinquent charges. Increases the fees that may be charged by local governments for administrative costs incurred in collecting delinquent taxes or other delinquent charges. The fees are increased from $20 to $30 for delinquent taxes and other charges collected before judgment is taken, and from $25 to $35 for such taxes and charges collected subsequent to a judgment.
Patron - Williams

P SB1285

Local real estate assessments; buildings substantially completed or fit for use and occupancy. Authorizes Arlington County, Loudoun County, Prince William County, and the Cities of Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park to assess real estate tax on new buildings when substantially complete or fit for use and occupancy, regardless of the date of completion or fitness. Under current law, (i) any county, city, or town may assess real estate tax on new buildings that are substantially complete or fit for use and occupancy prior to November 1 of the tax year, and (ii) Fairfax County may assess real estate tax on new buildings when substantially complete or fit for use and occupancy, regardless of the date of completion or fitness.
Patron - Saslaw

Failed

F HB1387

Local business license fees; telecommuting enhancement exemption. Provides an exemption from local business license fees to any person, firm, or corporation whose annual gross receipts do not exceed $250,000 and at least 75 percent of whose business operations are carried out through telecommuting. To qualify, the distance from the telecommuter's home to the central worksite must be at least 50 miles except in areas designated as nonattainment for one-hour ozone and severe traffic congestion pursuant to the federal Clean Air Act. In addition, an alternate worksite must be at least 50 percent closer to the individual's home than the central worksite is to his home.
Patron - Lingamfelter

F HB1390

Individual income tax; credit as an incentive to use high-occupancy vehicle (HOV) lanes. Provides a nonrefundable tax credit to any taxpayer who occupies any vehicle, as driver or passenger, while such vehicle is driven on at least 75 different occasions in HOV lanes. The amount of the credit is equivalent to the total amount the taxpayer paid for (i) a state motor vehicle safety inspection, (ii) a state motor vehicle emissions inspection, and (iii) a Virginia motor vehicle registration for individuals claiming the tax credit. Individuals claiming the credit must certify their use of HOV lanes to the Department of Taxation. The Department of Taxation shall develop appropriate procedures and forms to administer the credit.
Patron - Lingamfelter

F HB1408

Individual income tax; indexing personal exemption amount. Beginning January 1, 2004, requires the $800 personal exemption to be indexed annually based on the consumer price index.
Patron - Black

F HB1414

Personal property tax; privately owned vehicle. Adds language to the definition of the term "privately owned" so that a vehicle held in trust for a natural person will qualify for the car tax phaseout.
Patron - Janis

F HB1420

Property tax exemption; Cartersville Medical Center, Incorporated. Grants an exemption from real property tax to Cartersville Medical Center, Incorporated, a nonprofit, charitable and benevolent organization, for property it owns in Cumberland County.
Patron - Abbitt

F HB1426

Corporate income tax; Virginia Entrepreneurial Encouragement Act. Creates the Virginia Entrepreneurial Encouragement Act that 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, 2003, but no later than December 31, 2005.
Patron - Purkey

F HB1453

Cigarette tax; increase in state tax. Increases the state tax on cigarettes from one and one-quarter mills per cigarette to one cent per cigarette or 20 cents per pack.
Patron - Melvin

F HB1517

Transient occupancy tax. Requires those counties that are authorized to impose a transient occupancy tax up to a rate of five percent to spend the revenue resulting from any rate in excess of two percent on tourism promotion as determined in conjunction with local tourism industry organizations, but not on the acquisition of development rights or open space except under certain conditions.
Patron - Black

F HB1519

Real estate tax; limitation on tax rate. Provides that an annual assessment, biennial assessment or general reassessment of real property may not result in more than a five-percent increase in the total real estate tax levies, with two exceptions. The first exception allows the locality to raise the property tax rate by the rate of population growth plus inflation in the locality for the immediately preceding year. The second exception allows the locality to raise the rate above the five-percent limit if approved by the voters in a local referendum. Under current law, (i) the annual growth in a locality's total real estate taxes from an annual assessment, biennial assessment or general reassessment is not capped, provided the locality holds a public hearing in regard to its real property tax rate; and (ii) there is no cap on real property tax rates.
Patron - Black

F HB1537

Sales and use tax medical-related exemptions. Extends the sunset date from July 1, 2003, to July 1, 2008, for tissue banks such as Lifenet. This bill is incorporated into HB 1754 and SB 742.
Patron - Purkey

F HB1552

Motor fuels; information return on number of gallons transferred to retailers. Provides that any person selling or transferring motor fuels to a retailer for sale at retail shall file a quarterly information return with the Department of Motor Vehicles identifying the retailer to whom the motor fuel was provided, the number of gallons sold or transferred to each retailer for sale at retail, and the number of gallons sold or transferred to retailers for sale at retail in each county and city. The return shall be filed by the twentieth of the month following the end of each quarter beginning with the quarter ending March 31, 2004. Any person failing to file the return or filing a false or fraudulent return shall be subject to a civil penalty of $500 for his first violation and a penalty of $1,000 for each subsequent violation.
Patron - Marshall, R.G.

F HB1566

Taxation; Revenue Revitalization Act of 2003. Eliminates the state two percent sales and use tax on food purchased for human consumption, leaving the half percent for transportation, the one percent based on average daily membership and the one percent local option. The bill also increases the sales and use tax rate to nine percent on alcohol, beer and wine with all the revenues going to the general fund until such time as the Public Safety Trust Fund is created following the approval by a majority of the voters in a general election of a constitutional amendment requiring the Fund's creation. The bill allows the Commonwealth to impose a tax on all tobacco products (cigarettes, cigars, snuff, chewing tobacco, and smoking tobacco) at the rate of 50 cents per pack or package and five cents per cigar. The revenues generated by the tobacco products tax shall be deposited into the general fund until such time as the Health Care Trust Fund is created following the approval by a majority of the voters in a general election of a constitutional amendment requiring the Fund's creation. Finally, the bill allows all localities to impose a local option tobacco products tax at a rate not to exceed 25 cents per pack or package and three cents per cigar. Localities that imposed a cigarette tax at a higher rate as of January 1, 2003, may maintain that rate but shall not increase it. The cap on the local option tobacco products tax rate shall remain in effect until January 1, 2008.
Patron - Hamilton

F HB1582

Car tax relief; vehicles held in trust. Permits non-business vehicles held through an inter vivos trust to be eligible for car tax relief. This bill incorporates HBs 1414 and 2244.
Patron - Cole

F HB1583

Real property tax; exemptions for elderly and handicapped persons. Modifies the conditions under which localities may exempt or defer real property taxes of certain elderly and handicapped persons by (i) increasing the maximum combined net worth from $100,000 to $500,000; (ii) increasing the number of acres excluded from net worth from one acre to 10 acres; and (iii) increasing the maximum amount of income of a relative of the property owner living on the property that may be excluded from the maximum income calculation from $8,500 to $10,000.
Patron - Cole

F HB1602

Individual income tax; additional surtax. Requires Virginia individual income taxpayers to pay an additional 5 percent surtax on their tax liability for taxable years beginning January 1, 2003, through December 31, 2004.
Patron - Van Yahres

F HB1603

Corporate income tax; additional surtax. Requires Virginia corporate income taxpayers to pay an additional five percent surtax on their tax liability for taxable years beginning January 1, 2003, through December 31, 2004.
Patron - Van Yahres

F HB1604

Individual income tax; age deduction based on federal adjusted gross income (FAGI). Changes the age deduction beginning in 2003 based on FAGI as follows:

FAGI

Taxpayer's age
62 through 64 years

Taxpayer's age
65 years and over

$40,000 or less
$6,000

$12,000

$40,001- 50,000
$4,500

$9,000

$50,001 - 60,000
$3,000

$6,000

$60,001 - 70,000
$1,500

$3,000

$70,001 and above
0

0

Patron - Van Yahres

F HB1605

Personal Property Tax Relief Act of 1998; repeal. Repeals the Personal Property Tax Relief Act of 1998 effective January 1, 2004.
Patron - Van Yahres

F HB1646

Classification of land and improvements for tax purposes. Provides that in Prince William County improvements to real property are declared to be a separate class of property and shall constitute a separate classification for local taxation of real property. The County may levy a tax on such property at a different rate than the tax imposed upon the land on which it is located. This section, which currently applies only to the City of Fairfax, was enacted during the 2002 Session with a delayed effective date of July 1, 2003.
Patron - Marshall, R.G.

F HB1654

Sales and use tax exemption; Fellowship Health Resources, Inc. Provides a sales and use tax exemption beginning July 3, 2003, and ending July 1, 2008, to a 501 (c) (3) corporation organized to improve the quality of life of persons suffering from mental or emotional disturbances, through the operation of group homes, day programs, social activity programs, and a network of supervised apartments.
Patron - Darner

F HB1655

Sales and use tax exemption; Fairfax Central Baptist Sunday School Union. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) organization located in northern Virginia and established to assist students in college, build confidence in students of all ages, promote spiritual growth through study, enhance mastery and knowledge of the Bible, strengthen academic skills, and develop confidence and poise.
Patron - Darner

F HB1656

Sales and use tax exemption; The Society of St. Andrew, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) organization established to provide food for those in need, whether by giving the food directly to those in need or packing, loading, and transporting food to food banks, flood-ravaged areas, Indian reservations, etc.
Patron - Putney

F HB1658

Tax administration; filing tax returns. Clarifies that state tax returns may be filed with the commissioner of the revenue in the locality where the taxpayer resides or with the State Tax Commissioner, effective for taxable years beginning on and after January 1, 2004, and allows the Department of Taxation to request, promote or solicit the filing of returns directly with the Department.
Patron - Wardrup

F HB1672

Sales and use tax exemption; Christian Friends Ministries, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation organized to provide seminars, conferences, retreats, and various trips to strengthen, empower, teach, and build up the body of Christ, thereby eliminating denominational barriers, religious doctrine, and traditions of man in order to build Christian unity based on the word of God.
Patron - Petersen

F HB1701

Individual income tax; subtraction for certain local school board employees. Allows a subtraction when calculating taxable income of the first $15,000 of salary for each local school board employee whose annual salary is $15,000 or less, for taxable years beginning on and after January 1, 2004.
Patron - Ware

F HB1710

Admissions tax; events to which admission charged. Adds as an additional class admissions charged for entry into motion picture theaters to the list of events to which the local admissions tax is charged.
Patron - Darner

F HB1711

Watercraft and aircraft sales and use tax rate increase. Increases the sales and use tax rate on watercraft and aircraft from two percent to three percent.
Patron - Darner

F HB1712

Taxes on food for human consumption and cigarettes. Reduces the state sales and use tax on food to 2.5 percent and increases the state tax on cigarettes from 2.5 cents to 50 cents per pack.
Patron - Darner

F HB1713

Sales and use tax exemption; MacCallum More Museum and Gardens. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation operating as a museum and gardens (i) to promote the appreciation of the fine arts; (ii) to establish, own, maintain, and operate an arts center to conform to standard museum practices; (iii) to display, sell, purchase, and own articles of art; (iv) to support the arts in the local school system; and (v) to encourage local artists' participation in its programs. This bill is incorporated into HB 1754 and SB 742.
Patron - Wright

F HB1721

Sales and use tax exemption; Airways and Air Communications Service Alumni Association Reunion. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (19) corporation organized as an association to foster common awareness of the United States Air Force Communications and Air Traffic Control missions previously performed by members of the association, and to provide the membership a forum for educational and humanitarian services to exchange news of common interest.
Patron - Callahan

F HB1723

Recordation tax and refinanced mortgages. Eliminates from the recordation tax the exemption for mortgages that are refinanced with the same lender. The purpose is to eliminate the fraud that is currently taking place because there is no way for the circuit court clerks to be sure that the same lender is actually providing the refinancing when the deed is filed with the clerk.
Patron - Callahan

F HB1725

Sales and use tax exemption; The Montpelier Foundation. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation to promote and support, for the benefit of the public, the preservation and administration of a Virginia Historic Landmark and National Historic Landmark located in the central Piedmont region of the State and family home of a former President of the United States.
Patron - Broman

F HB1726

Sales and use tax exemption; Mini-Pigs, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation organized as a nonlethal animal sanctuary specializing in the rescue and care of miniature (often called potbellied) pigs.
Patron - Broman

F HB1742

Sales and use tax exemption; Lake Christian Ministries, Inc. Provides a sales and use tax exemption beginning July, 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation organized to promote benevolent activities, including providing food, clothing, household items, and financial aid to certain Smith Mountain Lake area residents.
Patron - Byron

F HB1755

Educational sales and use tax exemptions; omnibus extension bill. Extends the sunset date to July 1, 2004, for numerous educational sales and use tax exemptions due to expire on July 1, 2003. This bill is incorporated into HB 1754 and SB 742.
Patron - Parrish

F HB1762

Sales and use tax exemption; International Police Association Region #60, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation serving the western 33 counties and independent cities of Virginia and organized to carry on and operate a fraternal organization dedicated to uniting in service and fellowship all active and retired members of law-enforcement service, striving to enhance the image of police, and facilitating cooperation through friendly contact among police officers.
Patron - Putney

F HB1763

Sales and use tax exemption; Christmas in April of Bedford, Inc. Provides a sales and use tax exemption beginning July, 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation located in Bedford County, and organized to improve housing for the elderly, handicapped, and poor.
Patron - Putney

F HB1772

Sales and use tax exemption; ArtInPlace Foundation. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation organized to promote civic pride through the creation of public art, fountains, cultural improvements, attractive architecture, and urban design in the Charlottesville-Albemarle area.
Patron - Van Yahres

F HB1779

Admissions tax; Charles City County. Permits Charles City County to impose an admissions tax.
Patron - Miles

F HB1785

Sales and use tax exemption; Harvest Free Will Baptist Childcare Ministries, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation organized to provide a loving, homelike atmosphere for abused, abandoned, and neglected children.
Patron - Kilgore

F HB1852

Sales and use tax distribution; transportation. Returns a portion of the current state sales and use tax revenue generated through sales in certain regions back to those regions for transportation projects that will reduce poor air quality, reduce traffic congestion, and aid the safety of motorists or pedestrians as follows: (i) revenues attributable to a one-half percent rate, up to $50 million annually, for transportation projects in Arlington County, Fairfax County, Loudoun County, Prince William County, the City of Alexandria, the City of Fairfax, the City of Falls Church, the City of Manassas, and the City of Manassas Park; (ii) revenues attributable to a one-half percent rate, up to $50 million annually, for transportation projects in Isle of Wight County, James City County, York County, the City of Chesapeake, the City of Hampton, the City of Newport News, the City of Norfolk, the City of Poquoson, the City of Portsmouth, the City of Suffolk, the City of Virginia Beach, and the City of Williamsburg; and (iii) revenues attributable to a one-half percent rate, up to $20 million annually for transportation projects in Augusta County, Botetourt County, Frederick County, Montgomery County, Pulaski County, Roanoke County, Rockbridge County, Rockingham County, Shenandoah County, Smyth County, Warren County, Washington County, Wythe County, the City of Bristol, the City of Harrisonburg, the City of Radford, the City of Salem, the City of Staunton, and the City of Winchester.
Patron - Lingamfelter

F HB1867

Sales tax exemption; Virginia Primary Care Association, Inc. Retroactively extends the sunset date to July 1, 2008, for a sales and use tax exemption that had expired on July 1, 2002, which exempts from sales and use tax § 501 (c) (3) organizations organized to improve access to primary health care for all Virginians by, including but not limited to, providing technical assistance to communities in developing not-for-profit primary care medical practices. This bill is incorporated into HB 1754 and SB 742.
Patron - O'Bannon

F HB1873

Sales and use tax exemption; Cystic Fibrosis Foundation. Provides a sales and use tax exemption beginning July, 1, 2003, and ending July 1, 2005, to a 501 (c) (3) organization established for the benefit of and in aid of scientific research, study training, and the dissemination of information with respect to the disease known as "mucoviscidosis" (otherwise known as "cystic fibrosis") and related diseases; to provide indirect patient services to victims of such diseases; and to solicit contributions to support research programs.
Patron - O'Bannon

F HB1883

Deed recordation fee for open-space preservation. Imposes a one-dollar fee on every deed admitted to record as of July 1, 2003. The bill requires the Comptroller to distribute on a monthly basis the revenue from such collected fees to the Virginia Outdoors Foundation. The Foundation, established to promote the preservation of open-space lands and to encourage private gifts of money, securities, land or other property to preserve the natural, scenic, historic, scientific, open-space and recreational areas of the Commonwealth, shall hold and administer these funds in accordance with its statutory purpose and powers.
Patron - May

F HB1993

State recordation tax; additional distribution to localities. Provides that 50 percent of the amount of state recordation tax collected in excess of $80 million shall be distributed, beginning June 30, 2004, and each year thereafter, to the counties and cities based on the percentage of recordation taxes collected in each county and city. The remaining 50 percent would be deposited in the state's general fund. The additional amount above $80 million distributed to counties and cities would be used for land preservation.
Patron - Bloxom

F HB1994

Land gains tax. Creates a land gains tax to be paid by the seller on the sale or exchange of land in excess of 10 acres according to the following:

Tax Rates for Individuals

Holding
Period
Over 400%
Net Gain
300%-400%
Net Gain
200%-299%
Net Gain
100%-199%
Net Gain
Less Than 100%
Net Gain

Less than 1 year 20% 18% 16% 14% 12%

1-2 years 18% 16% 14% 12% 10%

2-3 years 16% 14% 12% 10% 8%

3-4 years 14% 12% 10% 8% 6%

4-5 years 12% 10% 8% 6% 5.75%

5-6 years 10% 8% 6% 5.75% 5.75%

6-7 years 8% 6% 5.75% 5.75% 5.75%

7-8 years 6% 5.75% 5.75% 5.75% 5.75%

Over 8 years 5.75% 5.75% 5.75% 5.75% 5.75%

Tax Rates for Corporations

Holding
Period
Over 400%
Net Gain
300%-400%
Net Gain
200%-299%
Net Gain
100%-199%
Net Gain
Less Than
100%
Net Gain

Less than 1 year 21% 19% 17% 15% 13%

1-2 years 19% 17% 15% 13% 11%

2-3 years 17% 15% 13% 11% 9%

3-4 years 15% 13% 11% 9% 7%

4-5 years 13% 11% 9% 7% 6%

5-6 years 11% 9% 7% 6% 6%

6-7 years 9% 7% 6% 6% 6%

7-8 years 7% 6% 6% 6% 6%

Over 8 years 6% 6% 6% 6% 6%

Patron - Bloxom

F HB1998

Local business taxes; appeals. Takes away the right of the locality to appeal to the circuit court from an adverse ruling of the Tax Commissioner regarding the assessment of a local business tax. The bill also removes the burden of proof from the taxpayer when he appeals such a ruling.
Patron - Ware

F HB2025

Local cigarette tax; counties use revenues for public school capital projects. Allows all counties to impose a local cigarette tax at a rate not to exceed 50 cents per pack. All additional revenues shall be used solely for capital projects for public schools.
Patron - Petersen

F HB2026

Cigarette tax; Counties of Fairfax and Arlington. Increases the maximum authorized cigarette tax rate from five cents per pack to 50 cents per pack in the Counties of Fairfax and Arlington. In the event that either county chooses to impose such tax in excess of five cents per pack, all revenues resulting from that portion of the tax in excess of five cents per pack shall be used solely for capital projects for public schools.
Patron - Petersen

F HB2035

Real estate tax; limitation on tax rate. Provides that an annual assessment, biennial assessment or general reassessment of real property may not result in more than a five percent increase in the total real estate tax levies for a county, city or town, with one exception. The bill also provides that a county, city or town may not set its real property tax for any tax year at a rate that would produce more than 105 percent of the previous year's total real property tax levies for such county, city or town, with one exception. The exception would allow a locality to set its property tax rate at a rate not to exceed the rate of population growth plus the rate of inflation in the locality for the immediately preceding year. The average tax increase on individuals would not exceed five percent. However, some taxpayers could be above the average while others could fall below the average. Under current law, (i) the annual growth rate in a locality's total real estate taxes from an annual assessment, biennial assessment or general reassessment is not capped, provided the locality holds a public hearing in regard to its real property tax rate; and (ii) there is no cap on real property tax rates.
Patron - Marshall, R.G.

F HB2047

Omnibus Fiscal Emergency Recovery Act of 2003. Reduces car tax relief from 70 percent to 59.5 percent, increases the state cigarette tax from 2.5 cents to 7.5 cents per pack, increases the beer and beverage tax the equivalent of one cent per 12 ounce container, increases the motor fuel tax by two cents per gallon, and caps the commission/discount that dealers receive for collecting and remitting the sales and use tax to $400 per month for each certificate of registration. The bill will be effective for two years from July 1, 2003, to July 1, 2005.
Patron - Woodrum

F HB2054

Individual income tax; indexing tax brackets and personal exemptions. Requires that the individual income tax brackets and personal exemption amounts be indexed annually by the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U), for taxable years beginning on and after January 1, 2004.
Patron - Cole

F HB2067

Income tax; major business facility job tax credit. Repeals the sunset clause for the major business facility job tax credit and lowers the threshold amount of jobs that must be created from 50 to 25 in distressed areas and from 100 to 50 in other areas. The reduced threshold amounts are only applicable to businesses that satisfy these amounts for the first time after January 1, 2004.
Patron - Dudley

F HB2070

Sales and use tax exemption; Chesapeake Bay Division of the International Association for Identification, Inc. Provides a sales and use tax exemption for a federally tax-exempt organization, from July 1, 2003, through June 30, 2005, that is organized to assist persons who are actively engaged in the profession of forensic identification, investigation, and scientific examination of physical evidence to become an organized body, so that the profession, in all of its branches, may be standardized and effectively and scientifically practiced.
Patron - Dudley

F HB2084

Personal Property Tax Relief Act of 1998; percentage of reimbursement. Allows for the reduction of the percentage amount to be reimbursed in tax year 2003 to such an amount that would not cause a decrease in the amount of revenues appropriated for K-12 education and law enforcement in 2002, adjusted for inflation. The Governor and the chairmen of the House and Senate Finance Committees would determine that percentage and adjust it annually if necessary. The percentage would return to the next highest percentage no later than 2006. This bill has an emergency clause.
Patron - Abbitt

F HB2107

Recordation tax increase; City of Alexandria. Permits the City of Alexandria, by local ordinance, to increase its recordation tax from an amount equal to one-third of the amount of state recordation tax to two-thirds. Moneys collected that are attributable to such increase shall be used to finance affordable housing or the acquisition or preservation of open-space land.
Patron - Van Landingham

F HB2117

Sales and use tax; absorption of the tax. Allows merchants to absorb the sales and use tax on behalf of consumers for a week during the month of August beginning in 2003 and ending in 2004.
Patron - Reid

F HB2148

Reduced sales and use tax for certain clothing, footwear, and computers. Establishes a state sales and use tax exemption during the period from August 16 through August 22, 2003, and every August 16 through August 22 thereafter, for "clothing and footwear" costing less than $200 per article; "computer systems" costing less than $1,250; and "computers," "computer hardware," and "computer software" costing less than $500. The bill also requires the Department of Taxation to promulgate regulations that implement the temporary exemption program by August 1, 2003.
Patron - Rust

F HB2160

Sales and use tax exemption; Southwest Virginia Workforce Investment Board. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) organization established to promote a well-trained, well-educated, highly skilled, and qualified workforce in southwest Virginia that is actively engaged in lifelong learning. Such a workforce is critical to the attraction and retention of successful business and industry to southwest Virginia and will ensure a desirable quality of life.
Patron - Phillips

F HB2163

Local coal and gas severance tax; Dickenson County. Permits Dickenson County to use for any purpose up to one million dollars per year from the special one percent severance tax on coal and gas. Under current law all such revenues are to be paid into a special fund and used solely for road improvement, water quality improvement, and economic development.
Patron - Phillips

F HB2167

Severance tax; gases. Provides that in calculating the fair market value of gases for severance tax purposes, no deductions shall be allowed except for marketing and transportation charges after the gases leave the geographic boundaries of the locality from which they were severed.
Patron - Phillips

F HB2170

Personal Property Tax Relief Act of 1998; reduce reimbursement amount. Reduces the current car tax reimbursement amount from 70 percent to 27.5 percent, for tax year beginning January 1, 2003. The reimbursement amount will remain at 27.5 percent until the general fund revenues, including transfers, for the most recently ended fiscal year after 2004 equal or exceed the amount of such revenues collected in tax year 2000 and adjusted for inflation.
Patron - Phillips

F HB2238

Sales and use tax exemption; Colonial Beach Historical Society, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation organized to preserve the history of the town of Colonial Beach and the surrounding area, and to promote public understanding and appreciation of the contributions by the town and its citizens to the Northern Neck area.
Patron - Pollard

F HB2244

F HB2247

State and local cigarette tax; higher rates. Increases the state cigarette tax from 2.5 cents per pack to 25 cents per pack and allows all counties, cities and towns to impose a local cigarette tax. The bill limits the rate that localities may levy to 50 cents per pack except any localities that imposed the tax at a higher rate prior to January 1, 2003, may continue to impose the tax at that higher rate.
Patron - Watts

F HB2250

Local piggyback income 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. The Tax Commissioner collects the tax and returns it to localities based on taxpayers' residences. The provisions of the act will take effect January 1, 2005, if a constitutional amendment eliminating the property tax on motor vehicles is approved in a referendum to be held during the general election in November 2004.
Patron - Watts

F HB2272

Sales and use tax exemption; Al-Anon Family Group Headquarters, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation organized to encourage, assist, and serve the families and friends of alcoholics in dealing with the problems concerning and attendant on alcoholism; to reinforce their efforts to understand the alcoholic and to foster his or her restoration to normal life; to disseminate information in relation thereto and to conduct, and participate in, any other classes of service to assist families and friends of alcoholics in dealing with their problems.
Patron - Purkey

F HB2306

Sales and use tax; exemption for certain contractors. Exempts from paying the sales and use tax any person who contracts to perform services for and provides 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.
Patron - Devolites

F HB2313

Cigarette manufacturing tax. Imposes a state tax on cigarette manufacturers in the amount of 25 hundredths of a cent per cigarette manufactured or produced in Virginia on or after January 1, 2004, (the tax is five cents per pack of cigarettes, based on 20 cigarettes in a pack). The moneys collected from such tax, including penalties and interest, shall be credited to a special fund titled "Medical Assistance Services Fund." Beginning with the 2004 calendar year, moneys in the Fund shall be distributed solely for the provision of medical assistance services pursuant to Virginia's Medicaid Program authorized under Title XIX of the Social Security Act. The Department of Medical Assistance Services shall administer the moneys in the Fund.
Patron - Plum

F HB2320

Sales and use tax exemption; Reston Children's Center, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2007, to a 501 (c) (3) corporation located in northern Virginia and organized to promote innovative learning opportunities and individual creativity, while maintaining high standards of care and fostering equal opportunity in learning and education for all children regardless of race, creed, sex, religion, national origin, disability, or economic status.
Patron - Plum

F HB2326

Income tax; voluntary contribution of tax refund to the Tuition Assistance Grant Fund. Creates an additional income tax checkoff beginning January 1, 2004, and ending January 1, 2009, for individuals to contribute all or part of their income tax refunds, but not less than $5.00, to the Tuition Assistance Grant Fund.
Patron - Bland

F HB2347

Sales and use tax exemption; Harrisonburg-Rockingham Child Day Care Centers, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2007, to a 501 (c) (3) corporation organized to provide the Harrisonburg-Rockingham areas full-day child care and learning opportunities for children ages two to eight years in a secure and nurturing environment, regardless of families' financial resources, race, or religious affiliation, and to foster opportunities for children's physical, social, emotional, and intellectual growth.
Patron - Weatherholtz

F HB2355

Income tax; voluntary contribution of tax refund to the Spay and Neuter Fund. Creates an additional income tax checkoff beginning January 1, 2004, and ending January 1, 2009, for individuals to contribute all or part of their income tax refunds to the Spay and Neuter Fund.
Patron - Shuler

F HB2358

Sales and use tax exemption; Langley Residential Support Services, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation organized to provide mentally retarded citizens in the Northern Virginia area with education, training, housing, and services especially designed to meet their physical, social, and psychological needs, and to promote their health, security, happiness, and usefulness in longer living.
Patron - Callahan

F HB2363

Personal Property Tax Relief Act of 1998; reduce reimbursement amount. Reduces the current car tax reimbursement amount from 70 percent to 50 percent, for tax years beginning on and after January 1, 2003. The reimbursement amount will remain at 50 percent until the general fund revenues, including transfers, for the most recently ended fiscal year after 2004 equal or exceed the amount of such revenues collected in tax year 2000 and adjusted for inflation.
Patron - Shuler

F HB2433

Sales and use tax; rate increase. Increases the state sales and use tax one percent from 3.5 percent to 4.5 percent. One-half of the one percent increase will be appropriated (i) for salary increases for teachers in public schools, and (ii) to address the problems in public education identified in a recent study by the Joint Legislative and Review Commission. The remaining one-half percent of the increase will be distributed to localities to be used for education purposes according to the following formula (i) one-third based on point of sale; (ii) one-third based on a set per pupil amount, based on the latest actual adjusted average daily membership, and adjusted by the locality's composite index of ability to pay; and (iii) one-third in the same manner that one percent of the current state sales and use tax is distributed among localities.
Patron - Dillard

F HB2472

Sales and use tax rate increase; revenues used for K-12 public education. Increases the state sales and use tax from three and one-half percent to four percent and requires the revenues generated by such increase to be used solely for K-12 public education. A special K-12 Public Education Fund is created to hold the revenues generated by the increased rate.
Patron - Crittenden

F HB2522

Local tax for enhanced 911 service. Provides that the E-911 tax shall not exceed three dollars per residential consumer, regardless of the number of subscriber lines assigned to such consumer.
Patron - Morgan

F HB2531

Increases in certain local cigarette taxes. Authorizes Fairfax and Arlington Counties to increase their local cigarette taxes from the current five cents per pack to 30 cents per pack.
Patron - Almand

F HB2532

Motor vehicle fuel sales tax. Increases the rate of the motor vehicle fuel sales tax from two percent to four percent. The tax is currently imposed only in the Northern Virginia Transportation District.
Patron - Almand

F HB2555

Individual income taxes; credit for purchase of long-term care insurance. Provides a credit against individual income taxes for long-term care insurance premiums paid by the individual during the taxable year beginning with the 2003 taxable year. The amount of the credit for a taxable year shall equal 100 percent of the amount in long-term care insurance premiums paid during the taxable year. If the amount of the credit exceeds the individual's income tax liability for a taxable year, such excess shall be refunded to the taxpayer.
Patron - Landes

F HB2561

Sales and use tax exemption; Baptist World Alliance. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) organization established to promote Christian fellowship and cooperation among Baptists throughout the world; promote understanding and cooperation among Baptist bodies and with other Christian groups; act as an agency for the expression of biblical faith and historically distinctive Baptist principles and practices; act as an agency of reconciliation seeking peace for all persons; and uphold the claims of fundamental human rights, including full religious liberty.
Patron - Scott

F HB2599

Sales and use tax exemption; Refugee and Immigration Services of the Catholic Diocese of Richmond, Inc. Provides a sales and use tax exemption beginning July, 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation organized to resettle refugees and assist immigrants, empowering them to build new lives in a welcoming community.
Patron - Hall

F HB2607

Sales and use tax exemption; Amazement Square, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation located in Lynchburg and organized to educate and inform children and adults of all backgrounds about the arts, humanities, world cultures, science, technology, and their interdisciplinary relationships; to offer interactive exhibits and programs in these areas; to display and preserve hands-on learning objects and materials related to these subjects; and to stimulate further desire for future exploration.
Patron - Bryant

F HB2611

Taxation of certain telecommunications companies. Clarifies the definition of gross receipts for cellular companies that are subject to the minimum tax on telecommunications companies and the special regulatory revenue tax and to conform to recently enacted federal legislation known as the Mobile Telecommunications Sourcing Act.
Patron - Bryant

F HB2645

Local consumer utility tax; Town of St. Paul. Allows the Town of St. Paul to impose the local consumer utility tax beginning July 1, 2003, at which time Wise County may no longer impose such tax.
Patron - Phillips

F HB2655

Processing fee for collection of certain local taxes. Allows localities to impose a processing fee, not to exceed $25, when delinquent taxes and charges are collected by legal action.
Patron - Johnson

F HB2687

Sales and use tax; automobile refinishing. Provides that the sales and use tax on the paint and other materials that are separately stated that are applied to or affixed to an automobile that is being repaired is to be borne by the person for whom the repair is made.
Patron - Petersen

F HB2688

State recordation tax. Increases the state recordation tax from 15 cents to 30 cents per $100.
Patron - Spruill

F HB2693

Income tax; employer-provided commuting benefits tax credit. Grants an income tax credit to employers who pay eligible commuting expenses of their employees for taxable years beginning on and after January 1, 2004. Eligible commuting expenses are those costs that cover travel between an employee's residence and place of employment by means of multiple-occupancy vehicle transportation and mass-transit transportation. The maximum annual credit for commuting expenses is the lesser of $240 per employee or the employer's tax liability for the tax year. Unused credits are not refundable, and they may not be carried over or back to a different taxable year. An employer may not claim a tax credit for the expenses to the extent he has taken a deduction for such expenses for federal income tax purposes.
Patron - Bryant

F HB2713

Business, professional and occupational license (BPOL) tax; limitations on localities. Prohibits any county, city or town from imposing the BPOL tax on any person, firm or corporation engaging in the business of renting real property and having more than one definite place of business in different localities, provided such person, firm or corporation can produce sufficient evidence that the license tax has been paid on such income to the county, city or town in which it conducts the majority of its business. The bill has a retroactive effective date of January 1, 1998.
Patron - Drake

F HB2725

Individual income taxes; exemption for victims of terrorist attacks. Provides an exemption from individual income tax and from filing an individual income tax return for victims of the September 11, 2001, terrorist attacks on or involving the World Trade Center Towers in New York, New York, the Pentagon, or the crash of United Airlines Flight 93 southeast of Pittsburgh. The exemption is limited to (i) income earned or realized by such persons in the taxable year in which they die, or (ii) income earned or realized by the spouses of such individuals in such taxable year. "Victims" of the terrorist attacks includes individuals who were killed as a result of such terrorist attacks or killed in attempting to rescue or recover other persons injured or killed by such attacks.
Patron - Watts

F HB2729

Local cigarette tax. Allows Accomack, Isle of Wight, James City, Northampton, Southampton, and Surry Counties to impose a local cigarette tax. The bill also arranges the names alphabetically. Currently, only Fairfax and Arlington Counties may impose the tax.
Patron - Bloxom

F HB2730

County recordation tax; Northampton County. Allows the Northampton County governing board to impose an additional county recordation tax in an amount equal to three percent of the amount of the state recordation tax collectible for the Commonwealth, upon the first recordation of each taxable instrument in such county, beginning July 1, 2003, and ending July 1, 2005. Currently, every city and county may impose a local recordation tax equal to one-third of the amount of the state recordation tax.
Patron - Bloxom

F HB2735

Business, Professional and Occupational Licensing (BPOL) Tax; license fees, rates and requirements. Requires localities that impose the BPOL tax to (i) eliminate license fees by January 1, 2005, (ii) exempt the first $100,000 of gross receipts from taxation by January 1, 2005, 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, 2005.
Patron - Shuler

F HB2761

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 scholarship-funding organizations (NSFO). 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 to NSFO's may be awarded for students' tuition in public and nonpublic schools and their tutoring expenses. The credit would be effective for taxable years beginning on and after January 1, 2004.
Patron - Cox

F HB2769

Virginia Estate Tax. Allows estates that are valued at $3 million or less, the majority of which consists of either farm assets and real property or a closely held small business, to have an additional three years to pay the Virginia Estate Tax under an installment plan approved by the Department of Taxation.
Patron - Watts

F HB2774

Remote access to nonconfidential public records maintained by the treasurer; fee. Allows treasurers to impose a user fee, not to exceed $25 per month, for providing remote access to nonconfidential public records.
Patron - Ingram

F HB2780

The Virginia Educational Quality Act of 2003. Creates the Virginia Educational Quality Act of 2003 which (i) declares that funding for public education shall be the first budget priority of the Commonwealth, (ii) increases the state sales and use tax from three and one-half percent to four and one-half percent with the revenues dedicated to public education, (iii) authorizes the Virginia Public School Authority to issue bonds to fund grants to local school divisions in the total amount of $1 billion to pay the costs of school construction, school renovation, and other school infrastructure projects, and (iv) requires the Governor to report to the General Assembly on the status of educational funding to localities at the levels mandated by the Constitution of Virginia and the laws of the Commonwealth. One-half of the additional revenues from the increase in the sales and use tax is to be distributed among all counties and cities based upon point of sale and used solely for public school purposes, and the remaining one-half of such revenues is to be appropriated by the General Assembly (a) toward the fulfillment of standards of quality for public elementary and secondary schools, and (b) for obligations and priorities for higher education. The distributions to localities based on point of sale is conditioned on schools participating in a statewide distance learning system whereby the school interacts with colleges and universities, private businesses, and national centers of learning to bring students the benefits of the knowledge and skills of these diverse public and private entities. Appropriations by the General Assembly for elementary and secondary schools shall include (i) funding for the distance learning system and (ii) funding to create a Virginia Apprenticeship System Team ("VAST") that will provide on-the-job training for students through partnerships with private businesses. A portion of the appropriations for higher education is conditioned upon and used to help create a program whereby each institution of higher education, including community colleges, will be paired with divisions of state government to provide institutions of higher education the challenge and opportunity of thinking in partnership with the Commonwealth's state agencies. One-half of the grants from the Virginia Public School Authority ($500 million) shall be distributed to each school division in an equal amount of $3,676,471. The remaining one-half shall be distributed to each local school division on a set per pupil amount based on each school division's actual September 30, 2002, fall membership data as a proportion of total actual September 30, 2002, fall membership data for all school divisions. The portion of the bill increasing the sales and use tax is effective January 1, 2004, and only if approved at a statewide referendum on November 4, 2003.
Patron - Shuler

F HB2782

Service charge in lieu of real property taxes. Allows the service charge in lieu of property taxes for property owned by the Commonwealth to include lease/purchase and other similar arrangements to which the Commonwealth is a party.
Patron - Kilgore

F HB2796

Cigarette tax. Increases the state cigarette tax rate from two and one-half cents per pack to 60 cents per pack. One-half of the additional revenue generated by the increase is to be used solely to fund the Virginia Medicaid Program. The remaining one-half of such revenues is to be distributed to all of the counties and cities of the Commonwealth based upon the number of school aged children in each locality.
Patron - Van Yahres

F SB704

Sales tax on motor fuels. Provides for a statewide sales tax beginning July 1, 2004, on the sale of motor fuels in the Commonwealth. The tax would be imposed at the rate of four and one-half percent of the retail price of motor fuels sold in the Commonwealth and would be added to the per gallon or per unit price of motor fuel. All revenues generated and collected from the tax would be deposited into the Transportation Trust Fund of the state treasury and distributed in the manner currently provided for the one-half percent sales and use tax enacted by the 1986 Special Session of the General Assembly. Current law provides for a two percent sales tax on motor fuels in certain localities in the Commonwealth. The sales tax on motor fuels in these localities would increase to six and one-half percent.
Patron - Miller, K.G.

F SB773

F SB783

Sales and use tax exemption; Benevolent and Protective Order of Elks, Clifton Forge Lodge, No. 1065. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (8) corporation organized to inculcate the principles of charity, justice, brotherly love, and fidelity; to promote the welfare and enhance the happiness of its members; to quicken the spirit of American patriotism; and to cultivate good fellowship in Clifton Forge and neighboring areas.
Patron - Deeds

F SB789

Sales and use tax; limited time exemption for school supplies and certain articles of clothing. Provides a sales and use tax exemption for school supplies and certain clothing and footwear that are purchased during the third weekend in August beginning in 2004 and each year thereafter.
Patron - Deeds

F SB790

Sales and use tax; food for human consumption. Exempts food for human consumption from the state sales and use tax.
Patron - Deeds

F SB794

Local transient occupancy tax. Provides that revenues generated from the local transient occupancy tax shall be used for "tourism promotion," in consultation with local tourism industry organizations and in direct support of the local tourism industry. Tourism promotion includes direct funding to a local tourism promotion agency, financial support for advertising or marketing activities, publishing and distributing pamphlets and similar materials, conducting research, or engaging in similar promotional activities that attract tourists or business travelers to the area.
Patron - Miller, K.G.

F SB832

Sales and use tax; sales tax exemptions for organizations authorized to apply for a refund of tax. Provides that certain organizations that are authorized under current law to apply for a refund of sales and use taxes shall be exempt from such taxes beginning July 1, 2003. Organizations that (i) acquire land and purchase materials to erect or rehabilitate low-cost homes and then sell such homes at cost or (ii) repair or rehabilitate homes owned and occupied by low-income persons who could not otherwise afford to finance such rehabilitation or repair are authorized under current law to apply for a refund of sales and use taxes. These organizations would be exempt from such taxes beginning July 1, 2003.
Patron - Marsh

F SB835

Cigarette manufacturing tax. Imposes a state tax on cigarette manufacturers in the amount of twenty hundredths of a cent per cigarette manufactured or produced in Virginia on or after January 1, 2004 (the tax is four cents per pack of cigarettes, based on 20 cigarettes in a pack). The moneys collected from such tax, including penalties and interest, shall be credited to a special fund titled "Local Government School Construction Fund." All such moneys shall be distributed quarterly to counties and cities within 30 days after the end of each calendar quarter beginning with the calendar quarter ending March 31, 2004. Moneys in the Fund shall be distributed to counties and cities on a set per pupil amount, based on the latest actual adjusted average daily membership as determined by the Department of Education. All moneys distributed to localities shall be used solely for public school construction, public school additions and renovations, including retrofitting and enlarging public school buildings; public school infrastructure, including technology infrastructure; site acquisition for public school buildings and public school facilities; or debt service payments on such projects completed subsequent to December 31, 1993.
Patron - Howell

F SB862

Sales and use tax exemption; advertising businesses. Provides an exemption from sales and use tax beginning July 1, 2003, and ending July 1, 2008, for the purchase of printing materials by advertising businesses when the printed material is distributed outside the Commonwealth. This bill is incorporated into HB 1754 and SB 742.
Patron - Stosch

F SB887

Sales and use tax exemption; Veterans of Foreign Wars of the United States. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation organized for the purposes of, including but not limited to, organized for the purposes of including, but not limited to, preserving and strengthening comradeship among veterans of foreign wars of the United States; providing assistance to veterans of foreign wars; preserving and perpetuating the memory and history of veterans of foreign wars and assisting the widows and orphans of such persons; maintaining true allegiance to the government of the United States and fidelity to its Constitution and laws; and maintaining and extending the institutions of American freedom and defending the United States from all her enemies.
Patron - Ruff

F SB900

Local cigarette tax. Allows all counties, cities and towns to impose a local cigarette tax.
Patron - Quayle

F SB901

Local cigarette tax. Allows Isle of Wight County to impose a local cigarette tax. Currently, only Fairfax and Arlington Counties may impose the tax.
Patron - Quayle

F SB916

F SB927

Self-employed writers; license tax rate limitation. Limits the license tax rate for self-employed writers providing services from their homes. The license tax levied on self-employed writers by a county, city or town with a population of 2,000 or less shall not exceed $10 per year. In a county, city or town with a population greater than 2,000 the tax shall not exceed $30 per year.
Patron - Byrne

F SB932

Sales and use tax exemption; Loudoun Healthcare Foundation. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2008, to a 501 (c) (3) corporation organized to monitor, assess, and advise a health care company on all fundraising and donor-related matters, and to attain the fundraising goals established by the Loudoun Healthcare, Inc., Board of Directors.
Patron - Mims

F SB936

Sales and use tax exemption; DePaul Family Services, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) corporation organized to establish, operate, and supervise programs for the placement of children, adolescents, and adults with special needs into family foster homes, to provide for the personal and social needs of such persons either directly or by purchase of services, and to provide other services that recognize the dignity of every person and enhance the functioning of individuals and families.
Patron - Edwards

F SB949

Personal property tax relief on passenger cars, motorcycles, and pickup or panel trucks. Sets personal property tax relief under the Personal Property Tax Relief Act of 1998 to 47.5 percent for calendar year 2003. The level of tax relief is set at 70 percent for calendar year 2004 and 100 percent for calendar year 2005 and thereafter, subject to the conditions described under § 58.1-3524. The bill provides that the General Assembly intends that the savings from the reduction of personal property tax relief from 70 percent to 47.5 percent shall be appropriated for educational purposes, which shall include, but are not limited to, appropriations for public education, higher education, public libraries, cooperative extension service programs, teacher salaries, and law-enforcement and security in public schools. The bill contains an emergency clause.
Patron - Houck

F SB955

F SB1015

Real estate tax; use value assessment and taxation. Provides that local governments by ordinance may limit use value assessment and taxation to owners of real estate having a minimum percentage of their total income derived from the real estate for which use value assessment is to apply. Such minimum percentage shall not exceed 20 percent of total income.
Patron - Reynolds

F SB1020

Local taxes; waiver of penalty and interest. Authorizes local governments to enact ordinances for the waiver of penalty and interest imposed for the failure to file a return or to pay a tax. Such ordinance shall provide that penalty and interest may be waived in circumstances where the payment of all penalty and interest would result in an undue hardship on the taxpayer. If a local governing body enacts such ordinance, the treasurer shall have the discretion to determine if an undue hardship exists and to waive all or a portion of interest and penalty.
Patron - Reynolds

F SB1073

Local meals and lodging taxes limitations. Prohibits any city or town from imposing a meals tax or increasing such a tax unless the tax or its rate increase is approved by voter referendum. No city or town may impose a lodging tax at a rate in excess of two percent unless used for tourism promotion when the rate is limited to five percent. The limitations apply only to those cities and towns that do not have a meals or lodging tax as of January 1, 2003.
Patron - Rerras

F SB1084

Sales and use tax exemption; Falcon Conference Facility, Inc. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) organization established to provide educational programs, resources, and youth services that will improve the life of the youth's academic and spiritual needs and enable the youth to become civic-minded by providing a facility where organizations can sponsor retreats, seminars, and conferences that will nurture and strengthen life and enhance the social betterment of all youth.
Patron - Lambert

F SB1086

Individual income tax; subtraction for certain public school board employees. Provides a subtraction from taxable income to each employee of a county, city, or other local public school board whose annual salary is $15,000 or less. Such employees may reduce their taxable income for individual income tax purposes by the amount of their annual salary. The subtraction is effective for taxable years beginning on or after January 1, 2004.
Patron - Lambert

F SB1113

State cigarette tax. Increases the state cigarette tax rate from two and one-half cents per pack to 60 cents per pack.
Patron - Whipple

F SB1163

Sales and use tax exemption; Community Anti-Drug Coalitions of America. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2005, to a 501 (c) (3) organization established to build and strengthen the capacity of community coalitions to create safe, healthy, and drug-free communities, and provide public advocacy, training, and research in methods of substance abuse prevention to coalitions nationally.
Patron - Ticer

F SB1176

Personal Property Tax Relief Act of 1998; reduce reimbursement amount. Reduces the current car tax reimbursement amount from 70 percent to 47.5 percent for qualifying vehicles with a value greater than $1,000 for tax years beginning on and after January 1, 2003. The reimbursement amount will remain at 47.5 percent until the general fund revenues, including transfers, for the most recently ended fiscal year after 2004 equal or exceed the amount of such revenues collected in tax year 2000 and adjusted for inflation.
Patron - Puckett

F SB1208

Sales and use tax exemption; Virginia Elks Youth Camp. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation serving Bedford County and surrounding areas, and organized to provide a camping experience to children eight to 13 years old, including band and scout camps.
Patron - Newman

F SB1215

Sales and use tax exemption; Virginia Center for the Creative Arts. Provides a sales and use tax exemption beginning July 1, 2003, and ending July 1, 2006, to a 501 (c) (3) corporation organized to promote the arts of music, literature and drama, architecture, painting and sculpture, and the other fine arts throughout Virginia; and to encourage study, research, and production in all branches of art and to develop and encourage sympathetic understanding of their correlation and an appreciation of their value.
Patron - Newman

F SB1217

Appeals of state tax assessments. Provides that the Commonwealth has the burden of proof to show that a state tax assessment is correct or proper in an appeal to circuit court of such assessment. If the Commonwealth fails to carry this burden, the state tax assessment shall be overturned. Current law provides that the taxpayer appealing a state tax assessment to circuit court has the burden of proof to show that the assessment is erroneous or otherwise improper.
Patron - Cuccinelli

F SB1257

Fuels taxes; indexed to the rate of inflation. Increases the tax imposed on fuels every July 1, beginning in 2004, by the percentage increase in the Consumer Price Index for all items, all urban consumers (CPI-U).
Patron - Miller, K.G.

F SB1266

Personal Property Tax Relief Act of 1998. Repeals the Personal Property Tax Relief Act of 1998 effective January 1, 2004.
Patron - Reynolds

F SB1273

F SB1309

Virginia Estate Tax. Exempts estates from the Virginia estate tax if the majority of the total estate is comprised of agricultural property, a closely held business or a noncorporate business.
Patron - Deeds

F SB1319

Individual income tax; indexing personal exemption amount. Beginning January 1, 2005, requires the $800 personal exemption amount to be indexed annually based on the consumer price index.
Patron - Rerras

F SB1348

Virginia taxes; restructuring. Provides numerous changes to Virginia's taxes including eliminating the old-age deduction, changing individual income tax brackets with a top rate of seven percent on income greater than $100,000, increasing the corporate income tax from six percent to eight percent, eliminating the sales and use tax on food, increasing the personal exemption amount to $2,500, increasing the standard deduction for married persons to $7,000 and for single individuals to $3,500, applying the sales and use tax to amusement and personal services, establishing a refundable earned income tax credit equal to 20 percent of the federal earned income tax credit, and establishing a sales tax credit equal to $100 for each personal exemption claimed.
Patron - Lucas

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