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Taxation
Passed
P
HB17
Fuels tax. Makes several technical corrections, adds
new civil penalties for persons failing to submit reports and data required
under the fuels tax laws, and allows a jeopardy assessment against any
licensed distributor or importer who fails to pay the tax due the supplier.
Patron - Parrish
P
HB94
Real property tax exemption; elderly and disabled. Changes
the financial criteria that localities may use in determining eligibility
for real estate exemptions or deferrals for the elderly or disabled by:
(i) increasing from $8,500 to $10,000 the amount of income of a nonspouse
relative living with an elderly or disabled person; (ii) increasing from
$5,000 to $10,000 the maximum amount of assets that an elderly or disabled
person needing live-in assistance from a relative and enjoying a real
estate tax exemption may transfer without adequate consideration, and
still exclude the relative's income for purposes of determining maximum
income for the tax exemption; (iii) increasing from $100,000 to $200,000
the maximum financial work cap; and (iv) increasing from $7,500 to $10,000
the maximum amount a locality may exclude from the income of a totally
disabled person in calculating maximum income allowed.
Patron - Cole
P
HB97
Real property tax exemption; elderly and disabled. Increases
from one to 10 the maximum number of acres a locality may exclude in calculating
maximum financial worth of the elderly or disabled for real estate tax
exemptions.
Patron - Cole
P
HB104
Income tax returns. .Allows the Department of Taxation
to include the mailing addresses of the Department and the local commissioners
of the revenue with the appropriate income tax forms and filing instructions.
Patron - Callahan
P
HB143
Taxation; special classification of certain motor vehicles for local taxation.
Increases from one to two the number of specially classified
motor vehicles in households containing both a member and an auxiliary
member of a volunteer rescue squad or a volunteer fire department. Such
special classifications are used for local taxation of certain personal
property. This bill is identical to SB 349.
Patron - Orrock
P
HB154
Real estate tax exemptions for the elderly and disabled. Adds
Charlottesville to certain specified cities and counties that are authorized
to have higher caps on total income and total financial worth than other
cities and counties in determining real estate tax exemptions for the
elderly and disabled.
Patron - Van Yahres
P
HB246
Sales and use tax; telephone calling cards. Makes telephone
calling cards subject to the state sales and use tax and exempts them
from all other state and local utility taxes.
Patron - Petersen
P
HB282
Income tax; qualified equity and subordinated debt investment tax credit.
Reduces the annual revenue level required for a company
to qualify for the credit from $5 million to $3 million; excludes companies
from participating in the credit that have already successfully raised
more than $3 million in total investment capital; eliminates the availability
of the credit to professional/institutional investors such as larger venture
capital funds; and adjusts the tax penalties under the credit so they
do not create disincentives to investment, and are in line with counterparts
in competitive states. The provisions of the bill are effective January
1, 2005.
Patron - Purkey
P
HB293
Local taxes; offers in compromise. Authorizes (i) the
commissioner of the revenue or other tax assessment official to compromise
and settle certain tax assessments prior to the exhaustion of all administrative
and judicial review, upon a determination that there is substantial doubt
under applicable law as to the taxpayer's liability; and (ii) the treasurer
or other tax collection official to compromise and settle the tax amount
due and payable upon a determination that collection of the entire amount
is in substantial doubt and the best interests of the locality will be
served by such compromise.
Patron - Ware, R.L.
P
HB295
Local business taxes; written opinions of Tax Commissioner. Authorizes
the State Tax Commissioner to issue written opinions regarding machinery
and tools tax, business tangible personal property tax, and merchant's
capital tax and the administration of such taxes prior to the filing of
an appeal.
Patron - Ware, R.L.
P
HB298
Local taxation; effect of application for correction of assessment or
appeal upon applications for local permits and licenses. Prohibits
localities from denying permits and licenses to persons who have failed
to pay taxes, penalties and interest pending correction of an assessment;
appeal by locality of an assessment correction; application for correcting
or an appeal of a local business tax; or correction or equalization of
an assessment of real property. Also, there is no requirement to issue
a local vehicle license or a vehicle registration or renewal of registration
that is withheld pursuant to § 46.2-752.
Patron - Ware, R.L.
P
HB372
Local telecommunication tax; the Towns of Herndon and Vienna. Authorizes
the Towns of Herndon and Vienna to impose the local tax on the purchase
of telecommunication service and prohibits Fairfax County from simultaneously
imposing such a tax within such towns. Under current law, such towns would
have had to impose such tax on or before January 1, 2000, to continue
to impose such tax in the manner provided.
Patron - Rust
P
HB403
Real property tax; exemptions for elderly and handicapped. Permits
Goochland County to increase the income and financial worth limitations
used to determine whether certain elderly or handicapped persons are eligible
for exemption from or deferral of real property tax. This bill is identical
to SB 122.
Patron - Janis
P
HB464
Local taxes; appeals. Permits any taxpayer who is aggrieved
by the assessment of any tangible personal property tax on airplanes,
boats, campers, recreational vehicles or trailers to appeal such assessment
to the State Tax Commissioner for a determination of the issue. Either
party may appeal the determination of the State Tax Commissioner to the
circuit court. The bill requires the Department of Taxation to develop
and publish guidelines for such appeals no later than November 1, 2004,
and exempts the development of the guidelines from the Administrative
Process Act.
Patron - Drake
P
HB465
Remote access fees; treasurers. Allows local treasurers
who provide electronic access to public records to charge a fee to cover
operational expenses. The fee goes into a special nonreverting local fund.
Patron - Drake
P
HB515
Sales and use tax; nonprofit entities. Modifies the process
for exempting nonprofit entities from sales and use tax as such process
was designed by the 2003 General Assembly to go into effect on July 1,
2004, by: (i) permitting churches to continue self-renewal exemptions;
(ii) grandfathering and creating a new category of the types of organizations
that are exempt from collecting sales and use tax on fund-raising sales
of tangible personal property; and (iii) making several technical amendments.
This bill is identical to SB 585.
Patron - Orrock
P
HB549
Deed recordation fee for open-space preservation. Imposes
a $1 fee on every deed admitted to record as of July 1, 2004, in those
jurisdictions where open-space easements are held by the Virginia Outdoors
Foundation. The bill requires the State 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
P
HB615
Income tax; major business facility job tax credit. Lowers
the threshold amount of jobs from 100 to 25 that must be created in order
to take the major business facility job tax credit in severely economically
distressed areas that have an unemployment rate of at least twice the
average statewide unemployment rate and applies only to taxable years
2004 and 2005. The total amount of credit permitted annually in such areas
is limited to $100,000 in the aggregate.
Patron - Carrico
P
HB739
Transient occupancy tax. Authorizes Floyd 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 - Dudley
P
HB741
Transient occupancy tax. Permits the Counties of Chesterfield,
Hanover, and Henrico to impose a transient occupancy tax at the rate of
one percent with additional revenues designated and spent for the development
and improvement of the Virginia Performing Arts Foundations' facilities
in Richmond, for promoting the use of the Richmond Centre, and for promoting
tourism, travel or business that generates tourism and travel in the Richmond
metropolitan area.
Patron - O'Bannon
P
HB743
Local consumer utility tax; exemption for churches. Broadens
the permissive exemption from the consumer utility tax that localities
may provide to certain churches or religious bodies.
Patron - Stump
P
HB902
Income tax; filing returns with the commissioner of the revenue and the
Department of Taxation. Clarifies that taxpayers may
file their individual and fiduciary income tax returns with the Department
of Taxation as well as the local commissioners of the revenue.
Patron - Wardrup
P
HB924
Taxation; collection of delinquent state taxes by local government treasurers.
Allows the Department of Taxation to appoint local government
treasurers to collect delinquent state taxes in the same manner as they
collect delinquent local taxes.
Patron - Johnson
P
HB925
Taxation; nonjudicial sale of tax delinquent property. Allows
unimproved real property that is assessed at less than $10,000 with taxes
that have been delinquent at least five years and is either less that
4,000 square feet or has been determined by the local zoning administrator
to be unsuitable for building to be sold by the local treasurer or other
officer responsible for collecting taxes. Notice of the sale must be mailed
to the registered owner and anyone having an interest in the property,
and notice shall be posted at the circuit courthouse of the locality and
on the property if it fronts on a street.
Patron - Ingram
P
HB926
Personal Property Tax Relief Act of 1998. Permits treasurers
not to collect de minimus personal property tax balances on a taxpayer's
qualifying vehicle of $5 or less without affecting the locality's reimbursement
from the state for the qualifying vehicle.
Patron - Ingram
P
HB928
Real property taxes;
alternative due dates for Prince William County seniors. Allows Prince
William County to provide alternative due dates for payment of real property
taxes to taxpayers aged 65 or older, without penalty or interest.
Patron - Frederick
P
HB975
State recordation taxes; exemptions. Exempts the recordation
of leases of real estate to the same extent as deeds are exempt, and exempts
conveyances from the United States from the grantor's tax.
Patron - Reese
P
HB1001
Transient occupancy tax; Fairfax County. Provides for
an additional two percent transient occupancy tax in Fairfax County beginning
July 1, 2004, subject to the board of supervisors of the County appropriating
the revenues from such tax to a nonprofit convention and visitor's bureau
and for tourism in the County. No more than 75 percent of the revenues
from such tax shall be designated for and appropriated to the County to
be spent for tourism promotion, and the remaining revenues from such tax
shall be designated for and appropriated to a nonprofit convention and
visitor's bureau located in Fairfax County.
Patron - Hugo
P
HB1027
Lottery. Modifies several provisions of the Virginia
Lottery Law, generally granting to the Department and Director greater
latitude and authority in which to operate the lottery. Among the changes:
(i) monthly meetings of the Board are reduced to a minimum of quarterly
meetings, (ii) flexibility is given to the Board to determine the types
of games qualifying as a lottery, (iii) clarification is made that the
Department is not subject to the Virginia Public Procurement Act, (iv)
theft of a lottery ticket or prize is established as a crime, and (v)
certain notice and venue requirements for assignment of lottery prizes
are established.
Patron - Albo
P
HB1028
Lottery. Modifies for board members and officers and
employees of lottery vendors, the process for criminal background checks,
including the taking of fingerprints.
Patron - Albo
P
HB1030
Tangible personal property classifications for taxation. Specifies
that localities may exempt from personal property, in whole or in part,
or set a different tax rate for trailers primarily used by farmers to
transport farm animals or other farm products.
Patron - Cole
P
HB1076
Property tax exemptions. Clarifies the process localities
must follow to exempt from real or personal property taxes the property
of certain charitable and other related organizations. This bill contains
an emergency clause.
Patron - Parrish
P
HB1084
Sales tax; exemption for textbooks and other educational materials for
free distribution. Extends the sunset date from July
1, 2004, to July 1, 2008, for textbooks and other educational materials
withdrawn from inventory at book-publishing distribution facilities for
free distribution to professors. This bill is identical to SB 347.
Patron - Scott, E.T.
P
HB1159
Individual income
tax preparers; electronic filing; penalty. Requires income tax return
preparers who prepared at least 100 individual income tax returns for
any taxable year beginning on January 1, 2004, (200 returns for taxable
years beginning January 1, 2003) to file tax returns for all subsequent
taxable years using electronic means or software that produces a two-dimensional
barcode using two-dimensional-technology.
Patron - Hull
P
HB1174
Telecommunications taxation; Section 1 bill. Proposes
changes in the way telecommunications are taxed that would repeal several
state and local taxes and replace them with a yet-to-be-named tax and
E-911 fee and tax. Following the 2004 General Assembly Session, the working
group of industry and local government representatives that has been assisting
the Joint Subcommittee Studying the State and Local Taxation of the Entire
Telecommunications Industry and Its Customers within the Commonwealth
(HJR 651, 2003; HJR 209, 2002) with its work would continue to meet and
work on remaining issues. The working group would report its recommendations
to the chairmen of the House and Senate Finance Committees no later than
November 15, 2004. The proposal is for legislation to be introduced during
the 2005 General Assembly that would actually contain the provisions necessary
to carry out this intent. This method is similar to the manner used for
developing the changes needed for electric utility deregulation.
Patron - Bryant
P
HB1185
Land preservation income tax credits. Permits any pass-through
entity that allocates or transfers land preservation income tax credits
among taxpayers to designate with the Tax Commissioner a general partner,
member/manager, or shareholder of the entity as the individual that the
Tax Commissioner must first proceed against for the collection of taxes
in the event any portion of the credit is disallowed in the future.
Patron - Bryant
P
HB1208
Sales tax revenues; allocation. Adds Newport News to
the cities that are permitted to keep a portion of the state sales tax
collected in certain public facilities for which bonds have been issued.
Patron - BaCote
P
HB1241
Sales and use tax; dealers filing returns. Allows a dealer
to deliver sales tax returns to his local commissioner of the revenue
or local treasurer instead of the State Tax Commissioner.
Patron - Griffith
P
HB1243
Entitlement to certain sales tax revenues. Entitles the
City of Salem (described by population) to all sales tax revenues generated
by transactions taking place in certain public facilities to pay the cost
of bonds issued to pay for such public facilities. Such entitlement shall
continue for the lifetime of such bonds, which entitlement shall not exceed
30 years, and all such sales tax revenues shall be applied to repayment
of the bonds.
Patron - Griffith
P
HB1262
Sales and use tax exemption; film and audiovisual works. Extends
to July 1, 2009, the sunset date for the sales and use tax exemption allowed
for certain tangible personal property and services used in the production
of audiovisual work. This bill is identical to SB 571.
Patron - Janis
P
HB1426
Coal and gas road improvement tax; distribution of revenues to local public
service authority. Provides that any revenues generated
by the coal and gas road improvement tax and designated for local water
projects shall be distributed to the local public service authority rather
than the local governing body.
Patron - Phillips
P
HB1453
Delinquent real estate taxes; actions to collect; necessary parties. Provides
that anyone who acquires an interest in real estate that is the subject
of an action to collect delinquent taxes after filing of suit and a lis
pendens, shall not be deemed a necessary party, but shall be permitted
to intervene in the proceedings to file his claim. Failure to file such
a claim shall bar any such claim.
Patron - Gear
P
HB1461
Real Estate Assessments. Allows Powhatan Couty to establish
its own real estate assessment department.
Patron - Ware, R.L.
P
HB1486
Voluntary contributions of tax refunds to certain organizations. Provides
requirements for adding new and removing current organizations that are
recipients of voluntary contributions of tax refunds. The bill limits
the number of organizations who may receive such voluntary contributions
to a list of 25 organizations and designates the next two additions to
such list in the event another organization is removed.
Patron - Purkey
P
SB14
Local consumer utility tax. Allows the local governing
body of the Town of Iron Gate to impose the local consumer utility tax
on mobile phones by adopting a local ordinance on or after July 1, 2004.
While such town ordinance remains in effect, Alleghany County shall not
impose the tax within the limits of the Town.
Patron - Deeds
P
SB71
Local consumer utility tax; exemption for churches. Allows
any county, city or town to exempt from the consumer utility tax utilities
consumed on property of churches or nonprofit associations that are exempt
from the local property taxes.
Patron - Puckett
P
SB120
Annual report filing by utilities. Provides that the
real and tangible personal property in the Commonwealth leased and operated
by each electric supplier and corporation in the business of furnishing
heat, light and power by means of electricity includes only those assets
directly associated with production facilities and shall not mean real
estate or vehicles. The provisions apply for tax years beginning on or
after January 1, 2004, and there is an emergency clause.
Patron - Watkins
P
SB122
Real property tax; exemptions for elderly and handicapped. Adds
Goochland County to the list of localities that may increase the income
and financial worth limitations used to determine whether certain elderly
or handicapped persons are eligible for exemption from or deferral of
real property tax. This bill is identical to HB 403.
Patron - Watkins
P
SB165
Taxation; secrecy of information. Allows the Tax Commissioner
to provide tax information about employers and employees to the Commissioner
of Labor and Industry to facilitate the collection of unpaid wages. The
information would be used solely for satisfying the wage claims made under
the payment of wage law and would be subject to agreement between Labor
and Industry and Taxation.
Patron - Colgan
P
SB166
Taxation; secrecy of information. Allows the Tax Commissioner
to provide to the Department of the Treasury for its confidential use
the tax information needed to locate the holders of unclaimed property.
Patron - Colgan
P
SB231
Taxation; major business facility job tax credit. Extends
the sunset date for the major business facility job tax credit from January
1, 2005, to January 1, 2010.
Patron - Lambert
P
SB316
Local consumer utility tax. Allows the local governing
bodies of the Towns of Herndon and Vienna to impose the local consumer
utility tax on mobile phones by adopting a local ordinance on or after
July 1, 2004. Each town may adopt such ordinance. While the town ordinance
remains in effect, Fairfax County shall not impose the tax within the
limits of the respective town that has adopted the ordinance.
Patron - Howell
P
SB347
Sales tax; exemption for textbooks and other educational materials for
free distribution. Extends the sunset date from July
1, 2004, to July 1, 2008, for textbooks and other educational materials
withdrawn from inventory at book-publishing distribution facilities for
free distribution to professors. This bill is identical to HB 1084.
Patron - Houck
P
SB349
Taxation; special classification of certain motor vehicles for local taxation.
Increases from one to two the number of specially classified
motor vehicles in households containing both a member and an auxiliary
member of a volunteer rescue squad or a volunteer fire department. Such
special classifications are used for local taxation of certain personal
property. This bill is identical to HB 143.
Patron - Houck
P
SB361
Real property tax; exemptions for elderly and handicapped. Permits
Northern Virginia localities to increase the income and financial worth
limitations (from $62,000 to $72,000 and from $240,000 to $340,000) used
to determine whether certain elderly or handicapped persons are eligible
for exemption from or deferral of real property tax.
Patron - Colgan
P
SB366
Taxation of certain electric suppliers' real and personal property. Clarifies
that localities may tax certain electric suppliers' generating equipment
at a rate less than the local real estate tax rate.
Patron - Watkins
P
SB398
Sales tax; revenues generated from transactions in certain public facilities
in Newport News. Entitles the City of Newport News to
sales tax revenues generated from public facilities constructed or substantially
renovated from the proceeds of bonds issued by the City between July 1,
2004, and July 1, 2007.
Patron - Norment
P
SB399
Recordation tax; leases. Provides that the tax on the
recordation of leases of oil and gas rights and of outdoor advertising
signs owned by a person in the business of outdoor advertising shall equal
$25. The bill sets a tax of $50 on the recordation of leases of coal and
other mineral rights. Under current law, the tax on the recordation of
leases of oil and gas rights and of outdoor advertising signs may not
exceed $25, and the tax on the recordation of leases of coal and other
mineral rights may not exceed $50. The bill also provides that the tax
on the recordation of a lease of a communications tower or a communications
tower site shall be $75. The tax on the recordation of each lease to affix
communications equipment or antenna to any such tower or other structure
shall be at a rate of $15.
Patron - Norment
P
SB403
Taxation; secrecy of information. Allows the Tax Commissioner
to provide earnings information to the director of the Department of Human
Resource Management to assist in collecting overpayments resulting from
the failure of injured workers to report income.
Patron - Colgan
P
SB517
Transient occupancy tax; Rockbridge County and the Cities of Lexington
and Buena Vista. Authorizes an additional two percent
transient occupancy tax to be imposed by the governing bodies in the County
of Rockbridge and the Cities of Lexington and Buena Vista. The governing
bodies of all three localities are authorized to impose the tax. Revenues
collected from the tax shall be appropriated for the payment of principal
and interest on promissory notes executed by the Virginia Horse Center
Foundation or the Virginia Equine Center Foundation prior to January 1,
2004, that were part of an agreement for the Rockbridge Industrial Development
Authority to issue bonds on behalf of or for improvements at the Virginia
Horse Center Foundation, Virginia Equine Center Foundation, or the Virginia
Equine Center. The tax may no longer be imposed after the final payment
of principal and interest on all such notes.
Patron - Hanger
P
SB526
Income tax; the Commonwealth's system of taxation and conformity of terms.
Changes the date that Virginia conforms with the provisions
of the Internal Revenue Code from December 31, 2002, to December 31, 2003.
The bill also contains an emergency clause.
Patron - Hanger
P
SB533
Sales and use tax exemption; advertising businesses. Extends
the sunset date from July 1, 2004, to July 1, 2008, for the exemption
from sales and use tax for the purchase of printing materials by advertising
businesses when the printed material is distributed outside the Commonwealth.
Patron - Stosch
P
SB571
Sales tax exemption for film, video, and audio. Extends
the expiration date for the exemption of sales tax for film, video, and
audio from July 1, 2004, to July 1, 2009. This bill is identical to HB
1262.
Patron - Lambert
P
SB585
Sales and use tax; nonprofit entities. Modifies the process
for exempting nonprofit entities from sales and use tax as such process
was designed by the 2003 General Assembly to go into effect on July 1,
2004, by: (i) permitting churches to continue self-renewal exemptions;
(ii) grandfathering the types of organizations that are exempt from collecting
sales and use tax on fund-raising sales of tangible personal property;
and (iii) making several technical amendments. This bill is identical
to HB 515.
Patron - Colgan
P
SB627
Local consumer utility tax. Allows the local governing
body of the Towns of Vienna and Clifton to impose the local consumer utility
tax on mobile phones by adopting a local ordinance on or after July 1,
2004. While the town ordinance remains in effect, Fairfax County shall
not impose the tax within the limits of such town.
Patron - Devolites
P
SB632
Sales and use tax exemption for software and content delivered electronically.
Expressly exempts the electronic delivery of software,
data, content and other information services via the Internet from the
Commonwealth's sales and use tax. This bill clarifies existing law by
codifying a long line of State Tax Commissioner Rulings (97-405 and 02-111).
Patron - Devolites
P
SB642
Coal and gas road improvement tax; water/sewer projects. Adds
sewer systems and lines to water projects as an option for localities
to use a portion of the coal and gas road improvement tax revenues. The
bill also provides that any revenues generated by the coal and gas road
improvement tax and designated for local water or sewer projects shall
be distributed to the local public service authority rather than the local
governing body.
Patron - Puckett
P
SB652
Transient occupancy tax; additional amount for overnight accommodations
in greater Williamsburg area. Allows the Counties of
James City and York to impose an additional transient occupancy tax of
up to $2 for overnight accommodations. The revenues collected from the
additional tax must be used for advertising the Historic Triangle area
(City of Williamsburg, Counties of James City and York) as an overnight
destination. The additional tax expires January 1, 2008, unless any one
of the governing bodies of the City of Williamsburg and the Counties of
James City and York fails to adopt an ordinance by August 1, 2004, imposing
the tax, in which event the additional tax will expire on such date. Establishes
the Williamsburg Area Destination Marketing Committee of the Williamsburg
Area Convention and Visitors Bureau to direct such advertising.
Patron - Norment
P
SB681
Taxation; minimum tax on certain electric suppliers. Requires
certain electric suppliers to pay a minimum tax rather than the corporate
income tax for any year their minimum tax liability is greater than their
corporate income tax liability. The minimum tax is equal to 1.45 percent
of the electric supplier's gross receipts minus the state's portion of
the electric utility consumption tax billed to consumers. For electric
cooperatives that are exempt from federal taxation under § 501 of
the Internal Revenue Code, the minimum tax is equal to 1.45 percent of
the cooperative's gross receipts from sales to nonmembers minus the consumption
tax collected from nonmembers. Also included are provisions dealing with
electric suppliers that file consolidated or combined returns. The bill
will be effective for taxable years beginning on or after January 1, 2004,
and there is an emergency clause.
Patron - Watkins
P
SB684
Transient occupancy taxes and food and beverage taxes. Makes
technical changes to the transient occupancy taxes and the food and beverage
taxes for counties by replacing indirect references to specific counties
with the names of the counties.
Patron - Watkins
P
SB690
Corporate income taxes; tax credit for machinery and equipment used to
produce property from recyclable materials. Extends the
sunset date from December 31, 2003, to December 31, 2006, for a corporate
income tax credit for machinery and equipment used to produce personal
property from recyclable materials.
Patron - Hawkins
Failed
F
HB4
Estate tax. Conforms the amount of Virginia estate tax
due from an estate to the maximum amount of the federal estate tax credit
for state estate taxes, as permitted under federal estate tax law, as
such law shall be amended from time to time. Under current law the amount
of Virginia estate tax cannot be less than the federal credit under federal
law as such law existed on January 1, 1978. The bill is identical to SB
392, incorporates HB 1134, and is incorporated into SB 30.
Patron - Tata
F
HB33
Tobacco Products Tax; Health Care Revenue Act of 2004. 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 tax shall be deposited into a special fund, known as the Health
Care Trust Fund, once it is approved through a referendum. Until then
the revenues will be part of the general fund. 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, 2004, 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, 2009.
Patron - Hamilton
F
HB60
Motor fuel tax. Increases the tax on gasoline, diesel
fuel, and alternative fuel by six and one-half cents per gallon, increases
the motor carrier road tax by an equivalent of six and one-half cents
per gallon of fuel used in the Commonwealth, and increases the alternative
use fee for certain motor carriers from $100 to $150 (the fee is an alternative
to paying the motor carrier road tax). The revenue generated is used for
transportation purposes as required by existing law.
Patron - Parrish
F
HB72
Cigarette tax; rate increase. Increases the state cigarette
tax from two and one-half cents per pack to 50 cents per pack, and dedicates
all additional revenue to the Standards of Quality.
Patron - Reese
F
HB74
Cigarette tax; counties. Authorizes any county to impose
a local cigarette tax not to exceed 50 cents per pack. All revenue collected
from such tax must be used as an offset to the county's real estate tax
rate.
Patron - Reese
F
HB91
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, 2006,
(ii) exempt the first $100,000 of gross receipts from taxation by January
1, 2006, 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. This bill is incorporated
into HB 461.
Patron - Shuler
F
HB95
Real property tax exemption; elderly and disabled. Increases
from $5,000 to $10,000 the maximum amount of assets that an elderly or
disabled person needing live-in assistance from a relative and enjoying
a real estate tax exemption may transfer without adequate consideration,
and still exclude the relative's income for purposes of determining maximum
income for the tax exemption. This bill is incorporated into HB 94.
Patron - Cole
F
HB96
Real property tax exemption; elderly and disabled. Increases
from $100,000 to $200,000 the maximum financial worth cap a locality may
impose in providing real estate tax exemptions to the elderly or disabled.
This bill is incorporated into HB 94.
Patron - Cole
F
HB98
Real property tax exemption; elderly and disabled. Increases
from $7,500 to $10,000 the maximum amount a locality may exclude from
the income of a totally disabled person in calculating maximum income
allowed to provide real estate tax exemptions for the elderly or disabled.
This bill is incorporated into HB 94.
Patron - Cole
F
HB103
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
HB107
Income tax; the Commonwealth's system of taxation and conformity of terms.
Changes the date that Virginia conforms with the provisions
of the Internal Revenue Code from December 31, 2002, to December 31, 2003.
The bill also contains an emergency clause. This bill is identical to
SB 526 and SB 466.
Patron - Parrish
F
HB146
Motor vehicle fuel tax; in certain transportation districts. Imposes
a two percent sales tax on motor fuels in all the cities and counties
within any transportation district created pursuant to § 15.2-4504
of which the City of Fredericksburg and (i) Caroline County, (ii) King
George County, (iii) Spotsylvania County, or (iv) Stafford County are
part of the membership. The additional revenues shall be used for any
transportation project within such district. The bill is effective the
later of July 1, 2004, or 60 days after creation of the district.
Patron - Orrock
F
HB175
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 or working farm.
Patron - Baskerville
F
HB297
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, 2005.
Patron - Ware, R.L.
F
HB341
State Lottery Board; powers. Requires the State Lottery
Board through regulation to express the prize amounts for winning tickets
or shares in all advertisements of the lottery as the estimated present
value of such winnings if the prize is not payable in one single payment.
Patron - Pollard
F
HB385
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 - Lingamfelter
F
HB412
Meals tax and transient occupancy tax; cities and towns. Restricts
the imposition in any city or town of (i) a new (i.e., not in effect on
January 1, 2004) meals tax or an increase in the rate as of January 1,
2004, without approval by referendum, and (ii) transient occupancy taxes
in excess of two percent, (or five percent when the excess over two percent
is spent on tourism promotion under certain conditions), unless the city
or town had a higher rate as of January 1, 2004.
Patron - Welch
F
HB428
Motor fuel tax. Increases the tax on gasoline, diesel
fuel, and alternative fuel by six and one-half cents per gallon, increases
the motor carrier road tax by an equivalent of six and one-half cents
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
annually beginning January 1, 2005, 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
HB461
Business, Professional and Occupational Licensing Tax (BPOL). Phases
in lower rates based on growth for each of the four BPOL categories by
five cents and allows only a $25 fee rather than $50, for businesses that
start up in the last six months of a taxable year. These changes are effective
for taxable years beginning on or after January 1, 2005.
Patron - Drake
F
HB473
Property tax exemptions; charitable organizations. Modifies
the "grandfathering" of property tax exemptions for certain charitable
organizations that were granted through classification by the General
Assembly (prior to the Constitutional amendment, effective January 1,
2003, that gave such exemption authority solely to localities) to include
property (i) that was owned by such an exempt organization as of January
1, 2003, and (ii) that, as determined by a court of competent jurisdiction,
was taxed by the locality but should not have been. Current law grandfathers
only such property that actually was not being taxed by the locality as
of January 1, 2003. This bill is incorporated into HB 1076.
Patron - Nixon
F
HB531
Sales and use tax; increase for education and transportation. Increases
the state portion of the sales and use tax from 3.5 percent to 5.5 percent
with (i) one-half of the additional revenues generated to be used solely
to fund the Standards of Quality for public education, and (ii) the remaining
one-half of such revenues to be deposited into the Transportation Trust
Fund and used solely for transportation purposes.
Patron - Stump
F
HB582
Sales tax on food for human consumption. Reduces the
state portion of the sales tax on food for human consumption from three
percent to 1.5 percent with the revenue from the tax to be distributed
as follows: (i) the revenue from the tax at the rate of one-half percent
shall be distributed to the Transportation Trust Fund, and (ii) the revenue
from the tax at the rate of one percent shall be distributed to localities
based on school-aged population.
Patron - Hamilton
F
HB662
Individual income tax; tax credit for certain parents. Grants
a tax credit equal to $50 against the income tax liability of certain
parents who stay home to take care of at least one child under the age
of 16, provided certain requirements are satisfied. The credit would be
available for taxable years beginning on and after January 1, 2005.
Patron - Bell
F
HB730
Local license fees and taxes. Requires localities to
impose the flat license fees now authorized by current law on all businesses
or no businesses, and 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. This bill is incorporated into HB 461.
Patron - Joannou
F
HB757
Income tax; Virginia Tiered Incentive Program. Establishes
a program for providing corporate income tax credits for creation of jobs
in economically distressed localities, which are divided into three tiers.
The amount of the credit will be based on factors such as median household
income and rates of unemployment within the three tiers. The Tax Commissioner
shall promulgate regulations that are necessary or desirable to carry
out the provisions of the act. This bill is a recommendation of the Rural
Virginia Prosperity Commission.
Patron - Hurt
F
HB793
State and local cigarette tax. Increases the state cigarette
tax from two and one-half cents per pack to 25 cents per pack, and authorizes
all counties, cities, and towns to impose a cigarette tax not to exceed
the greater of 50 cents per pack or the rate that was in effect in the
locality on January 1, 2004.
Patron - Watts
F
HB802
Local cigarette tax. Gives counties the same authority
as cities and towns to impose a cigarette tax.
Patron - Petersen
F
HB839
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, 2005.
Patron - Baskerville
F
HB859
Taxation; reform package. Makes several changes to the
state tax code as follows: (i) increases the income tax personal exemption
amount from $800 to $2,500, (ii) increases the income tax standard deduction
amount to $3,500 for singles and married filing separately and to $7,000
for married filing jointly, (iii) adds and expands the income tax rates,
with a top rate of seven and one-half percent on income greater than $100,000,
(iv) eliminates the low-income tax credit and the age deduction; (v) provides
an income tax credit for sales taxes paid that is income-based; (vi) eliminates
the sales tax on food and expands the sales tax to include consumer services;
and (vii) tightens certain corporate income tax provisions, and increases
the rate from six percent to seven and one-half percent.
Patron - Watts
F
HB885
Motor fuel tax. Increases the tax on gasoline, diesel
fuel, and alternative fuel by six cents per gallon; increases the motor
carrier road tax by an equivalent of six cents per gallon of fuel used
in the Commonwealth; and increases the alternative use fee for certain
motor carriers from $100 to $150 (the fee is an alternative to paying
the motor carrier road tax). The revenue generated is used for transportation
purposes as required by existing law.
Patron - Plum
F
HB886
Cigarette tax. Increases the state cigarette tax rate
from two and one-half cents per pack to 50 cents per pack, and caps local
cigarette taxes at the rates in effect on January 1, 2004. The additional
revenue generated by the increase in the state tax rate is to be used
solely to fund the Virginia Medicaid Program.
Patron - Plum
F
HB913
Sales and use tax exemption; little league baseball and softball. Exempts
nonprofit little league organizations from collecting the sales tax when
they sell tangible personal property for fund-raising. Such organizations
already are exempt from paying sales tax when purchasing tangible personal
property. This bill is incorporated into HB 515.
Patron - Phillips
F
HB940
Admissions tax; Caroline County. Authorizes Caroline
County to impose a local admissions tax.
Patron - Pollard
F
HB972
State and local cigarette tax. Authorizes all counties
to impose a cigarette tax not to exceed 50 cents per pack.
Patron - Barlow
F
HB1051
Taxation; individual income tax rates and brackets. Changes
the income levels and adds an additional top rate to the Virginia individual
income tax rate structure as follows:
| Up to $6,000 |
|
| $6,001 - $10,000 |
|
| $10,001 - $35,000 |
|
| $35,001 - $200,000 |
|
| $200,001 and above |
|
Patron - Hamilton
F
HB1052
Sales and use tax; increase for education. Increases
the state portion of the sales and use tax from 3.5 percent to four percent
and requires that the additional revenue generated thereby be used solely
(i) to increase public school teachers' salaries to the 2003 national
average, (ii) to fully fund the total cost of all preschool programs for
at-risk four-year-olds, and (iii) to fund full-time instructional positions
in the areas of art, music, and physical education.
Patron - Hamilton
F
HB1064
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 - Armstrong
F
HB1065
Estate tax. Exempts from the estate tax all estates where
the majority of assets are an interest in a closely held business, including
working farms.
Patron - Armstrong
F
HB1068
Sales tax on food; reduction. Reduces the state portion
of the sales tax on food for human consumption (i) to two percent from
July 1, 2004, through June 30, 2005; and (ii) to one and one-half percent
on and after July 1, 2005, and holds harmless the portion of the state
sales tax currently dedicated to the Transportation Trust Fund and to
localities based on school-age population.
Patron - Armstrong
F
HB1072
Machinery and tools tax; date to file returns. Changes
from May 1 to March 1 the date by which machinery and tools tax returns
must be filed each year.
Patron - Armstrong
F
HB1078
Local taxes; appeals. Permits any taxpayer who is aggrieved
by the assessment of any local tax to appeal such assessment to the Tax
Commissioner for a determination of the issue. Either party may appeal
the determination of the Tax Commissioner to the circuit court, and the
locality must suspend all collection activity on the tax as long as the
court has jurisdiction of the matter, unless the locality shows to the
satisfaction of the court that: collection would be seriously jeopardized
by delay; or that the locality is likely to prevail on the merits of the
case because the taxpayer's application is (i) not well grounded in fact;
(ii) not warranted by existing law or a good faith argument for the extension,
modification, or reversal of existing law; (iii) interposed for an improper
purpose, such as to harass, to cause unnecessary delay in the collection
of the revenue, or to create needless cost to the locality from the litigation;
or (iv) otherwise frivolous. This bill is incorporated into HB 464.
Patron - Parrish
F
HB1079
Corporate income taxation; closing loopholes. Closes
two corporate income tax loopholes that allowed corporations to avoid
paying taxes on "nowhere income" and money paid to passive investment
companies in the form of royalties, interest and other intangible income.
The "throwback rule" closes the first loophole by allowing the Commonwealth
to tax the income when the property is shipped from an office, store,
warehouse, factory, or other place of storage in the Commonwealth and
the corporation is not taxable in the state of the purchaser. The second
loophole is closed by requiring the corporation to add back any otherwise
deductible interest expenses and costs and intangible expenses and costs
paid, accrued or incurred to one or more related members. This bill is
incorporated into HB 1361.
Patron - Parrish
F
HB1081
Taxation; A Commonwealth of Opportunity Plan. Sets the
governor's tax plan, which would (i) lower the income tax for most Virginians
by increasing the personal exemption amount from $800 to $1,000, increasing
the standard deduction amount to $4,000 for singles and married filing
separately and to $8,000 for married filing jointly, and raising the filing
thresholds to $7,000 and $14,000, (ii) reduce the food tax by 1.5 cents
and add one cent to the sales and use tax, (iii) tighten certain corporate
income tax provisions, (iv) increase Virginia's state cigarette tax to
25 cents per pack to pay for health care needs while giving counties the
authority to levy the tax up to a cap, (v) complete the plan to end the
car tax on personal vehicles valued at $20,000 or less, (vi) eliminate
the estate tax for certain working farms and family-owned businesses,
(vii) end the accelerated sales tax collection for retailers, (viii) provide
incentives for small and mid-size businesses to invest, and (ix) streamline
collection of the state sales tax. The bill also amends § 58.1-3833
by authorizing a local meals tax of up to four percent in counties. This
section already reads that the local meals tax in counties shall not exceed
four percent. However, the section, as published, is incorrect. It includes
language setting the local meals tax rate, which amendatory language was
dependent upon passage of the 2002 transportation referendums (See Chapter
853 of the Acts of Assembly of 2002). As the referendums did not pass,
such amendatory language never became law. The change to § 58.1-3833
is technical in nature. It sets out the Code section as it should have
been published and amends the section to clarify current law that authorizes
counties to impose a local meals tax up to four percent.
Patron - Parrish
F
HB1087
Sales and use tax exemption; Literacy Volunteers of the New River Valley.
Exempts from the retail sales and use tax beginning July
1, 2004, and ending July 1, 2008, tangible personal property purchased
for use or consumption by a charitable nonprofit organization established
to increase literacy for adults who function at or below the fifth grade
reading level, and for those seeking to learn English as a second language.
Patron - Nutter
F
HB1089
Virginia Tiered Incentive Program. Establishes a program
for providing corporate income tax credits for creation of jobs in economically
distressed localities. The amount of the credit will be based on factors
such as median household income and rates of unemployment. The Tax Commissioner
shall promulgate regulations that are necessary or desirable to carry
out the provisions of the act. This bill is a recommendation of the Rural
Virginia Prosperity Commission.
Patron - Nutter
F
HB1090
Sales and use tax; optional local tax for mass transit. Authorizes
any county or city embraced within the Washington Metropolitan Area Transit
Authority to levy an additional local sales and use tax at a rate of one-half
of one percent with the revenues generated from such tax to be used solely
for mass transit purposes. The county or city imposing such a tax must
reduce its real estate tax rate so that total real estate tax revenues
are reduced by 40 percent of the additional sales tax revenues. The tax
shall be adopted by local ordinance which shall become effective on the
later of the first day of a month at least 60 days after its adoption,
or the first day of the month after which at least one other such city
or county shall have adopted such an ordinance and the total population
within the counties or cities having adopted such an ordinance comprises
at least 50 percent of the total population of the counties and cities
embraced within the Washington Metropolitan Area Transit Authority.
Patron - Scott, J.M.
F
HB1122
Local business taxes; appeals to court. Provides that
when any taxpayer appeals to court an adverse decision of the State Tax
Commissioner regarding the assessment of a local business tax, the assessing
official shall suspend collection activity while the court retains jurisdiction
unless the court determines that collection would be jeopardized by delay,
or that suspension of collection would cause substantial economic hardship.
Patron - Lingamfelter
F
HB1134
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 incorporated
into HB 4 and is identical to SB 392.
Patron - McDonnell
F
HB1160
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, 2005.
Patron - Frederick
F
HB1164
Income tax; teleworking tax credit. Grants a tax credit
to certain qualified employers for eligible costs incurred to provide
an employee with the ability to telework, for taxable years beginning
on or after January 1, 2005. The credit equals 75 percent of the cost
of the initial set-up to enable teleworking for an employee who works
five or more days weekly. The credit per employee is limited to $1,000
annually.
Patron - Frederick
F
HB1188
Sales and use tax; Internet. Exempts from the sales and
use tax any tangible personal property or service acquired through the
use of the Internet.
Patron - Frederick
F
HB1270
Sales and use tax; increase for education. Increases
the state portion of the sales and use tax from 3.5 percent to four percent
for public school education, with one-half of the additional revenues
generated thereby deposited into the At-Risk Student Academic Achievement
Fund created by the bill, and the remaining one-half distributed to localities
based on a set per pupil amount, based on the latest actual adjusted average
daily membership, and used solely for public school capital projects.
The At-Risk Student Academic Achievement Fund is to be used to provide
noncompetitive grants to public school divisions to implement programs
designed to (i) improve the academic achievement of at-risk public school
students on the Standards of Learning assessments; (ii) decrease the rate
of dropout among at-risk public school students; and (iii) increase the
number of such students obtaining the advanced studies diploma.
Patron - Dillard
F
HB1286
Sales and use tax; increase for education. Increases
the state portion of the sales and use tax from 3.5 percent to 4.5 percent
with (i) one-half of the additional revenues generated to be distributed
among all counties and cities based upon point of sale and used solely
for public school purposes and (ii) the remaining one-half of such revenues
to be appropriated by the General Assembly for higher education.
Patron - Shuler
F
HB1287
Car tax relief; prerequisites to increases. Establishes
the following two additional prerequisites to increasing the percentage
of the reimbursable amount for each qualifying vehicle under the Personal
Property Tax Relief Act of 1998: (i) funding the Commonwealth's portion
of the Standards of Quality for public education in an amount equivalent
to at least 55 percent of the total statewide associated costs, and such
total statewide associated costs shall include, but not be limited to,
the prevailing costs of the prevailing practices as determined pursuant
to §§ 22.1-18.01 and 22.1-253.13:1; and (ii) funding higher
education in the Commonwealth according to the funding guidelines established
by the Joint Subcommittee on Higher Education Funding Policies pursuant
to Item 1 E of Chapter 1073 of the Acts of Assembly of 2000.
Patron - Shuler
F
HB1301
Local business license. Prohibits localities from issuing
a local business license without first determining that the applicant's
place of business satisfies all local zoning regulations.
Patron - Cosgrove
F
HB1361
Corporate income tax; add back for related companies. Describes
permissible and impermissible transactions between interrelated companies
for purposes of calculating their Virginia corporate income tax liability.
In general, a company is required to add back interest expenses and costs
and intangible expenses and costs relating to transactions with one or
more related entities, but several exceptions or "safe harbors" are provided
to protect most interrelated company transactions.
Patron - Nixon
F
HB1366
Sales and use tax increase for higher education. Increases
the state sales and use tax from 3.5 percent to 3.75 percent and dedicates
the additional revenue for higher education according to the following
formula: (i) 25 percent of the additional revenue shall be distributed
to the Virginia Community College System to support operating costs, and
(ii) the remaining 75 percent of the additional revenue shall be distributed
to various four-year public institutions of higher education in accordance
with the recommendations and findings of the Joint Subcommittee for Higher
Education Funding Policies, and with priority given to those institutions
(a) demonstrating the highest rate of increase in in-state enrollments
and (b) having the portion of out-of-state enrollments in each incoming
freshman class not exceeding 25 percent, as set forth in the appropriation
act. However, such restriction on out-of-state enrollments shall not apply
to Norfolk State University, Virginia Military Institute, and Virginia
State University.
Patron - Scott, J.M.
F
HB1381
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.
Patron - Wardrup
F
HB1390
Virginia Cultural Economic Development Revolving Fund. Creates
the Virginia Cultural Economic Development Revolving Fund ("Fund") for
the purposes of improving the cultural institutions and organizations
and economic development prospects and interests of the Commonwealth through
collaboration with Virginia's local governments. An Advisory Board is
created to assist the Virginia Resources Authority in managing the Fund.
The Fund shall be used to make grants or loans to local governments for
projects within the purposes of the Fund.
Patron - Callahan
F
HB1395
Local recordation fee. Allows cities and counties to
impose a fee not to exceed $250 on all recorded instruments that are subject
to the state recordation tax. The revenues generated by the fee are to
be used by the locality for public school capital projects.
Patron - Cosgrove
F
HB1399
Local income tax and tax on food. Allows localities to
impose a local income tax at a rate of one-tenth of one percent on Virginia
taxable income in excess of $17,000 in order to replace the revenues they
would receive from the sales tax on food, which is eliminated in this
bill.
Patron - Ebbin
F
HB1409
Personal Property Tax Relief Act of 1998; repeal. Repeals
the Personal Property Tax Relief Act of 1998 effective January 1, 2005.
Patron - Armstrong
F
HB1428
Cigarette tax; nonparticipating manufacturers' fee on cigarettes. Imposes
a fee of 15 mills per cigarette ($0.30 per pack) on cigarette manufacturers
that are not participating in the Master Settlement Agreement. Nonparticipating
manufacturers whose cigarettes are being offered for sale in the Commonwealth
must pay the fee within 30 days after the effective date of the legislation
while those whose cigarettes are not being offered for sale in the Commonwealth
at the time the legislation take effect must prepay the fee, which will
be not less than $50,000. The legislation is effective on January 1, 2005.
Patron - Louderback
F
HB1431
Real estate tax; collection proceedings for delinquent taxes. Provides
that after suit is filed and lis pendens is recorded regarding the sale
of real estate for delinquent taxes, any party that acquires an interest
thereafter in the real estate is not a necessary party but may intervene
to file a claim. The purpose is to prevent last minute sham transfers
of title to property as a tax payment avoidance measure. This bill is
incorporated into HB 1453.
Patron - Kilgore
F
HB1469
Individual income tax; indexing the age deduction. Provides
for the age deduction amounts of $12,000 and $6,000 to be indexed annually
beginning in 2005 based on the Consumer Price Index for All Urban Consumers
(CPI-U).
Patron - Shannon
F
HB1470
Individual income tax credit for certain real property tax increases.
Provides a state income tax credit for real property
tax increases in excess of four percent for certain taxpayers on property
located in localities that have a composite index of 0.7 or greater.
Patron - Shannon
F
HB1473
Virginia Fuels Tax Act. Imposes an additional tax on
each gallon of fuel currently taxed under the Virginia Fuels Tax Act at
the rate of four percent of the statewide average retail price per gallon
of gasoline, increases the motor carrier road tax by the same rate, and
increases the alternative use fee for certain motor carriers from $100
to $150. The additional revenues generated shall be distributed among
the nine highway construction districts to be used for new road construction
within each district according to the following formula: 60 percent based
on the percentage of the Commonwealth's total population residing within
each district, and the remaining 40 percent based on the ratio of vehicle-miles
traveled on the primary system in each district divided by the number
of primary system lane miles in each district.
Patron - Hull
F
HB1488
Sales and use tax exemptions; commercial and industrial. Eliminates
numerous commercial and industrial sales and use tax exemptions.
Patron - Hamilton
F
SB74
State and local cigarette taxes. Increases the state
cigarette tax from 2.5 cents per pack to 65 cents per pack (based on 20
cigarettes in a pack). An amount equivalent to 40 cents per pack shall
be deposited in a special fund titled "Local Government School Construction
Fund." All such moneys deposited shall be distributed quarterly to counties
and cities within 30 days after the end of each calendar quarter. Moneys
in the Fund shall be distributed 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 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. An amount equivalent to 25
cents per pack shall be deposited in a special fund titled "Virginia Health
Care Fund." All such moneys deposited shall be used solely for the provision
of health care services. The bill also authorizes all counties, cities,
and towns to impose local cigarette taxes. The maximum local cigarette
tax that may be imposed (i) between July 1, 2004, and July 1, 2005, is
20 cents per pack; (ii) between July 1, 2005, and July 1, 2006, is 35
cents per pack; and (iii) on or after July 1, 2006, is 50 cents per pack.
Any county, city, or town imposing a local cigarette tax at a rate higher
than these rates prior to December 1, 2003, may continue to impose the
tax at such higher rate but no higher. This bill is incorporated into
SB 465.
Patron - Howell
F
SB84
Sales and use tax exemption; Citizens United for Rehabilitation of Errants-Virginia,
Inc. Exempts from the retail sales and use tax beginning
July 1, 2004, and ending July 1, 2008, tangible personal property purchased
for use or consumption by a § 501 (c) (3) nonprofit corporation organized
to improve the condition of prisoners and families affected by crime;
reduce crime by promoting the creation and preservation of programs and
policies directed at the rehabilitation of errants; and promote family
and community ties during a person's incarceration.
Patron - Puller
F
SB85
Individual income tax; distributions from qualified tuition programs.
Provides that distributions from a qualified tuition
program established under § 529 of the Internal Revenue Code, other
than distributions from the Virginia College Savings Plan, shall be subject
to Virginia's individual income tax.
Patron - Puller
F
SB91
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
SB111
Recordation tax; leases. Provides that the tax on the
recordation of leases of oil and gas rights and of outdoor advertising
signs owned by a person in the business of outdoor advertising shall equal
$25. The bill sets a tax of $50 on the recordation of leases of coal and
other mineral rights. Under current law, the tax on the recordation of
leases of oil and gas rights and of outdoor advertising signs may not
exceed $25, and the tax on the recordation of leases of coal and other
mineral rights may not exceed $50. The bill also provides that the tax
on the recordation of a lease of a communications tower or a communications
tower site shall be $75. The tax on the recordation of each lease to affix
communications equipment or antenna to any such tower or other structure
shall be at a rate of $15 for each tower or structure to which equipment
or antenna is to be affixed. This bill is incorporated into SB 399.
Patron - Williams
F
SB121
Taxation of public service corporations real and personal property. Limits
the rate imposed by localities on generating equipment reported to the
State Corporation Commission by electric suppliers to the local real estate
tax rate.
Patron - Watkins
F
SB140
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 multiply its current rate by the sum of (i) the rate of the
population growth, plus (ii) 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,
(a) 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 (b) there is no cap on real property tax rates.
Patron - Cuccinelli
F
SB147
Local taxes. Authorizes all counties to impose excise
taxes on cigarettes, admissions, transient room rentals, meals, and travel
campgrounds beginning January 1, 2005, with no cap on the rate of tax,
provided that any county increasing or first imposing any of these taxes
on or after January 1, 2004, shall be subject to limits on the amount
of annual revenue that may be generated from the county's real estate
tax. For each of the first three tax years of such increase or initial
imposition of such tax, the county shall set its rate of tax on real estate
so as to produce total real estate tax revenues not to exceed the prior
year's total real estate tax revenues adjusted for inflation and population
minus the additional revenue estimated to be generated from any increase
in county tax or new county tax that is to become effective in the tax
year.
In no event, however, for
any of the three years, may the county's total real estate tax revenues
increase by more than five percent when compared to the previous year.
For every tax year following
the initial three-year period, the county's revenues from real estate
tax may not increase by more than five percent each year.
Patron - Cuccinelli
F
SB188
Real estate tax on leasehold interests. Provides that
no local real estate tax may be imposed on a leasehold interest where
(i) the property being leased is a qualifying facility under the Public-Private
Education Facilities and Infrastructure Act of 2002, (ii) the leasehold
interest is held by the operator of the qualifying facility, and (iii)
the operator is carrying on a trade or business at the location of the
qualifying facility.
Patron - Puller
F
SB213
Food and beverage tax imposed without referendum; Giles County. Permits
Giles County to impose a food and beverage tax by adoption of local ordinance,
not by referendum.
Patron - Edwards
F
SB247
Real estate tax; credit for permanent easements. Allows
localities to provide by ordinance for a credit against the real estate
tax for permanent easements granted by taxpayers on property used for
public purposes within the locality.
Patron - Deeds
F
SB253
Sales and use tax exemption; Clinch Independent Living Services Inc. Exempts
from the retail sales and use tax beginning July 1, 2004, and ending July
1, 2008, tangible personal property purchased for use or consumption by
a § 501 (c) (3) nonprofit corporation operated by and for people
with disabilities and that provides information and referral, peer counseling,
independent living skills, and advocacy services to and on behalf of people
with disabilities.
Patron - Puckett
F
SB269
State and local cigarette taxes. Increases the state
cigarette tax from 2.5 cents per pack to $1 per pack and appropriates
the revenues collected from such increase for state police officers' salaries,
deputy sheriffs' salaries, K through 12 teachers' salaries, and Medicaid
funding. The bill also caps local cigarette taxes at the rates in effect
on January 1, 2004. This bill is incorporated into SB 269.
Patron - Potts
F
SB281
Taxation; personal exemption. Increases the individual
income tax personal exemption amount from $800 to $1,200 beginning with
the 2004 taxable year. This bill is incorporated into SB 635.
Patron - Wampler
F
SB305
Taxation; secrecy of information; right of subject of tax records. Clarifies
that the prohibition against the release of any information acquired by
any state or local tax or revenue officer or employee with respect to
the transactions, property, including personal property, income or business
of any person, firm or corporation shall not be construed to prohibit
the disclosure of a tax return to any person who is the subject thereof.
Patron - O'Brien
F
SB356
Transportation authorities of the Commonwealth. Creates
a transportation authority for each of the nine current construction districts.
The transportation authorities are to be funded from increases in the
motor vehicle sales and use tax. The tax is increased from three to five
percent for sales of motor vehicles and from four to six percent for the
rental of motor vehicles. The transportation authorities are given the
responsibility for planning and providing for the transportation needs
of the counties and cities embraced by the authority. The transportation
authorities may use their share of motor vehicle sales and use tax revenues
to acquire or construct transportation facilities, and may issue bonds
for such purposes and provide security for bonds with their allocable
share of motor vehicle sales and use tax revenues. The provisions of the
bill are effective January 1, 2005.
Patron - Colgan
F
SB357
Transportation authorities of the Commonwealth. Creates
a transportation authority for each of the nine current construction districts.
The transportation authorities shall be funded from a seven cent increase
in the fuels tax on gasoline, diesel fuel, and alternative fuels. Under
the bill the tax on gasoline would increase from 17.5 cents per gallon
to 24.5 cents per gallon, and the tax on diesel fuel and alternative fuels
would increase from 16 cents per gallon to 23 cents per gallon. Each Transportation
Authority's share of such revenues shall be determined on a pro rata basis
according to the population of the counties and cities embraced by each
Authority as compared to the total population of the Commonwealth. The
transportation authorities are given the responsibility for planning and
providing for the transportation needs of the counties and cities embraced
by the authority. The transportation authorities may use their share of
fuels tax revenues to acquire or construct transportation facilities,
and may issue bonds for such purposes and provide security for bonds with
their allocable share of fuels tax revenues. The provisions of the bill
are effective January 1, 2005. This bill is incorporated into SB 635.
Patron - Colgan
F
SB367
Transient occupancy tax; certain regions. Provides for
an additional one percent transient occupancy tax for any two or more
contiguous counties or cities if the revenues are used for debt service
for a performing arts center and to advertise, promote or provide incentives
to attract convention business to the region.
Patron - Watkins
F
SB378
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. This bill
is incorporated into SB 635.
Patron - Deeds
F
SB392
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 incorporated
into SB 635 and is identical to HB 4 and HB 1134.
Patron - Norment
F
SB411
Virginia Tiered Incentive Program. Establishes a program
for providing corporate income tax credits for creation of jobs in economically
distressed localities. The amount of the credit will be based on factors
such as median household income and rates of unemployment. The Tax Commissioner
shall promulgate regulations that are necessary or desirable to carry
out the provisions of the act. This bill is a recommendation of the Rural
Virginia Prosperity Commission.
Patron - Ruff
F
SB424
Local license tax; contractors engaged in the business of storing, maintaining,
or repairing vessels. Provides that any contractor who
is primarily engaged in the business of storing, maintaining, or repairing
vessels for use on water may elect to be classified for local license
taxation purposes as a manufacturer. Contractors making the election shall
be deemed to be manufacturers for local license tax purposes. Currently,
manufacturers are exempt from local license taxes and fees.
Patron - Norment
F
SB439
Sales and use taxes; City of Hampton. Dedicates to the
City of Hampton two percent of the 3.5 percent state general sales tax
and all of the watercraft sales tax from sales of boats taking place in
the City and from sales made by boating businesses located in the City.
The City shall use such revenues for enhancing and improving recreation
opportunities for boaters and anglers and to fund or implement environmental
conservation initiatives.
Patron - Locke
F
SB446
Income tax; personal exemption amount. Increases, beginning
with the January 1, 2004, taxable year, the personal exemption for Virginia
taxable income purposes from $800 to $1,200 for each personal exemption
allowable to the taxpayer for federal income tax purposes. For taxable
years beginning on or after January 1, 2005, the $1,200 personal exemption
will increase based upon annual increases in the Consumer Price Index.
This bill is incorporated into SB 635.
Patron - Rerras
F
SB455
Taxation; cigarettes and tobacco products. Increases
the excise tax on cigarettes from two and one-half cents to 75 cents per
pack. Also imposes an excise tax of three percent on noncigarette tobacco
products, such as cigars, snuff and chewing tobacco. The tax on noncigarette
tobacco products is to be implemented in a manner similar to the present
taxation of cigarettes. This bill is incorporated into SB 465.
Patron - Whipple
F
SB458
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
SB465
Taxation; cigarettes and tobacco products. Increases
the state excise tax on cigarettes from two and one-half cents to 20 cents
per pack on July 1, 2004, and 35 cents per pack beginning July 1, 2005.
The bill also provides for a 10 percent tax on other tobacco products
at the wholesale level. The tax on other tobacco products is paid monthly
through the filing of returns. All revenue from cigarette and other tobacco
products taxes would be deposited into a special fund known as the Virginia
Health Care Fund. Moneys deposited to the fund would be used solely for
the provision of health care services including, but not limited to Medicaid
payments, disease diagnosis, prevention and control, and community health
services.
Patron - Chichester
F
SB466
Income tax; the Commonwealth's system of taxation and conformity of terms.
Changes the date that Virginia conforms with the provisions
of the Internal Revenue Code from December 31, 2002, to December 31, 2003.
The bill also contains an emergency clause and is identical to SB 526
and HB 107.
Patron - Chichester
F
SB467
Taxation; A Commonwealth of Opportunity Plan. Sets out
the governor's tax plan which would (i) lower the income tax for most
Virginians by increasing the personal exemption amount from $800 to $1,000,
increasing the standard deduction amount to $4,000 for singles and married
filing separately and to $8,000 for married filing jointly, and raising
the filing thresholds to $7,000 and $14,000, (ii) reduce the food tax
by 1.5 cents and add 1 cent to the sales and use tax, (iii) tighten certain
corporate income tax provisions, (iv) increase Virginia's state cigarette
tax to 25 cents per pack to pay for health care needs while giving counties
the authority to levy the tax up to a cap, (v) complete the plan to end
the car tax on personal vehicles valued at $20,000 or less, (vi) eliminate
the estate tax for certain working farms and family-owned businesses,
(vii) end the accelerated sales tax collection for retailers, (viii) provide
incentives for small and mid-size businesses to invest, and (ix) streamline
collection of the state sales tax. The bill also amends § 58.1-3833
by authorizing a local meals tax of up to four percent in counties. This
section already reads that the local meals tax in counties shall not exceed
four percent. However, the section, as published, is incorrect. It includes
language setting the local meals tax rate, which amendatory language was
dependent upon passage of the 2002 transportation referendums (See Chapter
853 of the Acts of Assembly of 2002). As the referendums did not pass,
such amendatory language never became law. The change to § 58.1-3833
is technical in nature. It sets out the Code section as it should have
been published and amends the section to clarify current law that authorizes
counties to impose a local meals tax up to four percent. This bill is
incorporated into SB 635.
Patron - Chichester
F
SB502
Local property taxes; motor homes. Caps the tangible
personal property tax rate on motor homes at the rate of tax and rate
of assessment applicable to real estate in the county, city, or town.
Patron - Mims
F
SB512
Transient occupancy tax; Fairfax County. Provides for
an additional two percent transient occupancy tax in Fairfax County beginning
July 1, 2004, subject to the board of supervisors of the county appropriating
the revenues from such tax to a nonprofit convention and visitor's bureau
and for tourism promotion in the County. No more than 75 percent of the
revenues from such tax shall be designated and appropriated for tourism
promotion; the remaining portion of such revenues shall be designated
for and appropriated to a nonprofit convention and visitor's bureau located
in Fairfax County.
Patron - Mims
F
SB515
Individual income tax. Provides a subtraction from taxable
income for the first $15,000 of salary of local public school board employees
whose annual salary is $15,000 or less. Under current law, federal and
state employees whose annual salary is $15,000 or less may subtract their
salary income in computing taxable income for individual income tax purposes.
The subtraction may be taken for taxable years beginning on or after January
1, 2005.
Patron - Hanger
F
SB530
Taxation; omnibus tax plan. Sets out the tax plan which
would (i) increase the personal exemption amount from $800 to $2,500,
and increase the standard deduction amount to $3,500 for singles and married
filing separately and to $7,000 for married filing jointly, and raise
the filing thresholds to $7,000 and $13,000, (ii) make food fully subject
to sales and use tax but provide a refundable tax credit for the sales
tax paid on food equal to $40 per person, (iii) tighten certain corporate
income tax provisions, (iv) increase Virginia's state cigarette tax to
30 cents per pack, distribute all state cigarette tax revenues to local
governments, and repeal all local cigarette taxes, (v) beginning January
1, 2005, provide personal property tax relief at 100 percent on personal
use vehicles, regardless of vehicle value, (vi) conform the amount of
Virginia estate tax due from an estate to the maximum amount of the federal
estate tax credit for state estate taxes, (vii) end the accelerated sales
tax collection for retailers, (viii) increase the retail sales and use
tax by one-half percent to five percent, (ix) change Virginia's individual
income tax brackets and add a six percent and 6.5 percent income tax bracket,
(x) make the age deduction dependent upon federal adjusted gross income,
and (xi) increase the tax on motor fuels by an additional five cents per
gallon. The bill also amends § 58.1-3833 by authorizing a local meals
tax of up to four percent in counties. This section already reads that
the local meals tax in counties shall not exceed four percent. However,
the section, as published, is incorrect. It includes language setting
the local meals tax rate, which amendatory language was dependent upon
passage of the 2002 transportation referendums (See Chapter 853 of the
Acts of Assembly of 2002). As the referendums did not pass, such amendatory
language never became law. The change to § 58.1-3833 is technical
in nature. It sets out the Code section as it should have been published
and amends the section to clarify current law that authorizes counties
to impose a local meals tax up to four percent. This bill is incorporated
into SB 635.
Patron - Hanger
F
SB589
Taxation; reform package. Makes several changes to the
state tax code as follows: (i) increases the income tax personal exemption
amount from $800 to $2,500, (ii) increases the income tax standard deduction
amount to $3,500 for singles and married filing separately and to $7,000
for married filing jointly; (iii) adds and expands the income tax rates,
with a top rate of seven and one-half percent on income greater than $100,000;
(iv) eliminates the low-income tax credit and the age deduction; (v) provides
an income tax credit for sales taxes paid that is income-based; (vi) eliminates
the sales tax on food and expands the sales tax to include consumer services;
and (vii) tightens certain corporate income tax provisions, and increases
the rate from six percent to seven and one-half percent. This bill is
incorporated into SB 635.
Patron - Lucas
F
SB635
Omnibus tax bill. Makes several changes to the taxes
and fees of the Commonwealth as follows:
Corporate income tax: the
bill tightens certain corporate income tax provisions.
Sales and use tax: the bill
increases the state sales tax from 3.5 percent to 4.5 percent and dedicates
a portion of the revenues generated to the Virginia Water Quality Improvement
Fund and the Virginia Land Conservation Fund; reduces the state sales
tax on food to one percent; eliminates the current sales tax exemption
benefiting certain trucking companies; and eliminates provisions requiring
vendors to make accelerated sales and use tax payments.
Individual income tax: the
bill adds new tax brackets of 6.25 percent for income between $100,000
and $150,000 and 6.5 percent for income above $150,000; increases the
standard deduction for single taxpayers to $3,500 and to $7,000 for married
taxpayers; increases the personal exemption amount to $1,000; increases
the filing threshold for married taxpayers to conform to the new level
of standard deduction and personal exemption; applies a means test to
the age deduction tax preference, but includes conditional grandfathering
provisions for taxpayers at least age 62 as of December 31, 2003; and
in tax year 2004, eliminates eligibility for the $6,000 age deduction
for those born after December 31, 1941.
Estate tax: Eliminates the
estate tax on estates (i) of $10 million or less and (ii) where the majority
of the assets of the total estate are an interest in a closely held business
or a working farm.
Insurance license tax: The
bill repeals current law dedicating one-third of all insurance license
taxes to the Priority Transportation Fund.
Recordation tax, titling tax,
fuels tax, and motor vehicle registration fees: Increases the recordation
tax from 15 cents to 30 cents per $100 and dedicates $80 million of the
revenues from the increase, in both Fiscal Year 2005 and Fiscal Year 2006,
to the Rainy Day Fund; and beginning in Fiscal Year 2007, all revenues
from the increase are dedicated to the General Fund. The bill increases
the daily rental tax on motor vehicles from four percent to six percent
and dedicates the revenues from the increase to the General Fund.
The bill also increases the
titling tax on motor vehicles from three percent to 4.5 percent; increases
motor vehicle registration fees by $10 annually; increases the gasoline
tax by three cents per gallon and the tax on diesel fuel by 4.5 cents
per gallon; and imposes an additional 5.5 percent wholesale tax on gasoline
and diesel fuel. The revenues from these increases are dedicated to the
Transportation Trust Fund.
Patron - Chichester
F
SB643
Local food and beverage tax. Adds Fairfax County to the
counties authorized to impose a local food and beverage tax at a rate
not exceeding four percent by adoption of a local ordinance, rather than
after a referendum vote.
Patron - Saslaw
F
SB675
Nonparticipating manufacturers; monthly fee. Imposes
a fee of 15 mills on each cigarette sold or distributed in the Commonwealth
by a nonparticipating manufacturer. The fee shall be collected monthly
by the Department of Taxation from nonparticipating manufacturers. Nonparticipating
manufacturers are required to remit the fee in conjunction with filing
a monthly return by the twentieth of each month stating the number of
cigarettes it sold or distributed in the Commonwealth in the immediately
preceding month.
Patron - Puckett
F
SB676
Virginia Cultural Economic Development Revolving Fund. Creates
the Virginia Cultural Economic Development Revolving Fund ("Fund") for
the purposes of improving the cultural institutions and organizations
and economic development prospects and interests of the Commonwealth through
collaboration with Virginia's local governments. An advisory board is
created to assist the Virginia Resources Authority in managing the Fund.
The Fund shall be used to make grants or loans to local governments for
projects within the purposes of the Fund. The state vehicle rental tax
is increased from four percent to six percent, with the additional revenues
from such increase to be deposited into the Fund.
Patron - Wampler
F
SB682
Sales tax exemptions; commercial and industrial exemptions. Repeals
the sales and use tax exemption benefiting certain public service corporations
and clarifies that the industrial manufacturing exemption does not apply
to tangible personal property where the preponderance of its use is in
distributing gas, electricity, power, any other source of energy or power,
or water to customers. This bill is incorporated into SB 635.
Patron - Watkins
F
SB683
Corporate income tax; add back for related companies. Describes
permissible and impermissible transactions between interrelated companies
for purposes of calculating their Virginia corporate income tax liability.
In general, a company is required to add back interest expenses and costs
and intangible expenses and costs relating to transactions with one or
more related entities, but several exceptions are provided to protect
legitimate interrelated company transactions that have economic substance
and reflect valid arm's length standards. This bill is incorporated into
SB 635.
Patron - Watkins
F
SB692
Sales and use tax exemption; Pilot Club International Luncheon Pilot Club
of Chesapeake. Exempts from the retail sales and use
tax beginning July 1, 2004, and ending July 1, 2008, tangible personal
property purchased for use or consumption by a § 501 (c) (4) nonprofit
organization that provides services to persons with brain-related disabilities
and disorders.
Patron - Blevins
Carried
Over
C
HB50
Virginia Baseball Stadium Authority. Extends the Authority's
entitlement to certain income and sales and use taxes through January
1, 2008. The Authority would be entitled to income and sales and use tax
revenues generated from (i) activities conducted on the premises or within
a major league baseball stadium; and (ii) transactions made in connection
with the development and construction of a major league baseball stadium.
The entitlement to these revenues will expire on January 1, 2008, unless,
before that time, the Authority executes a lease with a major league baseball
team.
Patron - Callahan
C
HB88
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, 2004, but no later than December
31, 2006.
Patron - Purkey
C
HB101
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, 2005.
Patron - Cole
C
HB108
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, repeals local license taxes, essentially repeals the estate
tax over a two-year period, and eliminates the accelerated sales tax payments
by certain vendors. Regarding sales and use taxes, the bill reduces the
total state rate from 3.5 percent to three percent, repeals most exemptions,
exempts food from the tax, and extends imposition of the tax to most services.
Regarding income taxes, 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. The changes
are effective for taxable years beginning on or after January 1, 2005.
The new rates are as follows:
Virginia
Taxable
Income Level
|
|
|
|
|
0% |
0% |
|
|
3.5% |
0% |
|
|
4% |
0% |
|
|
5.5% |
5.5% |
|
|
6.25% |
6.25% |
Patron - Louderback
C
HB117
Commonwealth Private Investment Inducement Act of 2004. Dedicates
one-third of the annual insurance license tax revenue to transportation
projects in highway construction districts based on the percentage of
the population of the Commonwealth residing in each such district. The
portion of such revenues that otherwise would be distributed to: (i) the
Northern Virginia Construction District is instead deposited into the
Northern Virginia Investment Fund, created under the bill, and used to
finance bonds in an amount not to exceed $350 million for specific transportation
projects; (ii) the Hampton Roads Construction District is instead deposited
into the Hampton Roads Investment Fund, created under the bill, and used
to finance bonds in an amount not to exceed $350 million for specific
transportation projects in that area; and (iii) the Bristol, Salem, and
Staunton Construction District is instead deposited into the Western Virginia
Investment Fund, created under the bill, and used to finance bonds in
an amount not to exceed $350 million for specific transportation projects
in that area. The amount of such bond proceeds utilized must be matched
by equal or greater funds from private entities, localities, or both,
unless certain conditions exist.
Patron - Marshall, R.G.
C
HB149
Taxation; information returns filed by pass-through entities; penalty.
Requires pass-through entities (limited partnerships,
limited liability partnerships, general partnerships, limited liability
companies, professional limited liability companies, business trusts and
Subchapter S corporations) doing business in Virginia or having income
from Virginia sources to file an information return with the Tax Commissioner
by the fifteenth of the fourth month after the end of the entity's taxable
year. The pass-through entity is not liable for any tax, but its owners
as individuals may be. Any officer or owner of a pass-through entity who
makes a fraudulent return or statement with the intent of assisting or
facilitating the evasion of taxes shall be guilty of a Class 6 felony
and subject to a $1,000 maximum penalty.
Patron - Albo
C
HB174
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, 2005, 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 - Lewis
C
HB218
Virginia Baseball Stadium Authority. Changes the Authority's
entitlement to certain income and sales and use taxes from January 1,
2005, to July 1, 2004. The Authority would be entitled to income and sales
and use tax revenues generated from (i) activities conducted on the premises
or within a major league baseball stadium; and (ii) transactions made
in connection with the development and construction of a major league
baseball stadium. The entitlement to these revenues will expire on July
1, 2004, unless, before that time, the Authority executes a lease with
a major league baseball team.
Patron - Brink
C
HB284
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 $1,000 annually for any practitioner.
The credit would be available for taxable years beginning on or after
January 1, 2005.
Patron - Cosgrove
C
HB299
Income tax; indexing the personal exemption amount. Requires
the $800 personal exemption to be indexed annually according to the federal
government's prior fiscal year CPI-U for taxable years beginning January
1, 2005.
Patron - Ware, R.L.
C
HB311
Tax exemptions for nonprofit entities. Adds items to
the list of administrative costs, which may not exceed 40 percent of annual
gross revenues.
Patron - Purkey
C
HB361
Admissions tax; Charles City County. Permits Charles
City County to impose an admissions tax.
Patron - Miles
C
HB367
Income tax; voluntary contribution checkoff for Virginia First Responders
Fund. Allows taxpayers who are entitled to an income
tax refund to contribute such refund to the Virginia First Responders
Fund for taxable years beginning on or after January 1, 2005. The Fund
shall be used to purchase protective gear and other materials needed by
Virginia's first responders, who respond to various terrorist-related
situations, and shall be administered by the Department of Fire Programs.
Patron - Rust
C
HB458
Taxation; individual income and sales and use taxes. Repeals
the individual income tax and increases the sales and use tax from 4.5
percent to 9.5 percent. The provisions of the bill will be effective for
taxable years beginning on or after January 1, 2006, if reenacted by the
2005 General Assembly Session.
Patron - Athey
C
HB587
Income tax; refund of surplus revenues. Requires the
refund of surplus revenues to taxpayers when such surplus revenues exceed
the amount required to be deposited in the Revenue Stabilization Fund
by at least $50 million. The Department of Taxation shall make refunds
based on each taxpayer's pro rata share of excess revenues collected in
the calendar year in which the fiscal year surplus is determined. The
taxpayer must have filed an income tax return for such calendar year.
Patron - Janis
C
HB720
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 - Shannon
C
HB748
Residential development impact fee assessments; adequate public facilities.
Allows localities to adopt ordinances for the assessment
of impact fees when certain public facilities are inadequate to support
a proposed residential development. If the proposed development is for
senior residents only, then impact fees may be assessed in relation to
the adequacy of public safety, or public sewer or water facilities. For
all other proposed residential developments, the impact fees may be assessed
in relation to the adequacy of education, transportation, or public water
or sewer needs. Such fees shall be a pro rata share of the costs of reasonable
and necessary capital improvements attributable to the proposed development.
Prior to any impact fee assessment, the locality must identify the particular
public facility needs in its comprehensive plan, and must have in place
a capital improvement program that provides a reasonable basis for determining
the extent or level of inadequacy of such facilities in the area of the
proposed development. If the locality does not apply impact fees paid
by a developer to the capital project that served as the basis for such
assessment within six years of collection, then the developer may seek
a writ of mandamus to compel the locality to do so. Any impact fee ordinances
shall expire after six years, and may then be adopted for consecutive
six-year periods.
Patron - Marshall, R.G.
C
HB788
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 - Watts
C
HB791
Corporate income taxation; closing loophole. Closes a
corporate income tax loophole that allowed corporations to avoid paying
taxes on money paid to passive investment companies in the form of royalties,
interest and other intangible income. The loophole is closed by requiring
the corporation to add back any otherwise deductible interest expenses
and costs and intangible expenses and costs paid, accrued or incurred
to one or more related members.
Patron - Watts
C
HB794
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, 2005.
Patron - Watts
C
HB811
Taxation of individuals and corporations. Provides a
flat rate of 5.5 percent for both the individual and corporate income
taxes. The bill also increases the standard deduction for individual income
tax purposes to $24,000 for couples and $12,000 for individuals. The sales
and use tax rate would be increased to 5.5 percent. The bill has a reenactment
clause so it will be effective in 2006 if it passes during this session
and is reenacted in 2005.
Patron - Athey
C
HB843
Income tax; voluntary contribution of refund to Pre-Release and Post-Incarceration
Services Fund. Allows individuals entitled to an income
tax refund to contribute a portion, at least $1, or all of the refund
to the Department of Criminal Justice Services for the Pre-Release and
Post-Incarceration Services program, for taxable years beginning on and
after January 1, 2005, but before January 1, 2010. The program provides
support by means of grants to public or private nonprofit organizations
for pre-release and post-incarceration professional services and guidance
that increase the opportunity for successful reentry and reintegration
into local society by incarcerated adult offenders.
Patron - Baskerville
C
HB892
Income tax; distribution of revenues to localities. Requires
the transfer of one percent of individual income tax revenues to localities
in 2004, and the amount increases one percent each year until it reaches
a maximum of five percent for 2008 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
C
HB939
Income tax; qualified agricultural contributions deduction expiration.
Eliminates the sunset date for the income tax deduction
for qualified agricultural contributions, which expires January 1, 2004,
and makes the deduction for such contributions retroactive to January
1, 2004.
Patron - Pollard
C
HB1004
Localities may forgive certain back taxes. Allows localities,
to the extent not prohibited by the Virginia Constitution, to develop
a procedure to forgive back taxes on real property that is transferred
to a 501(c)(3) organization that is primarily engaged in the construction
of affordable single-family dwelling units.
Patron - Orrock
C
HB1036
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, 2005.
Patron - Saxman
C
HB1045
Agricultural Enterprise Zone Act. Allows the Governor
to establish agricultural enterprise zones upon application by localities
with established agricultural or forestal districts, or purchase of development
rights programs. "Qualified farm businesses" located in such zones may
apply to the Department of Agriculture and Consumer Services for certain
state business tax credits and sales tax exemptions. "Qualified farm businesses"
are businesses establishing agricultural or forestal operations and making
a net investment of at least $250,000 and creating at least five new full-time
jobs, or such operations already established if they have increased the
number of full-time employees by at least 10 percent over the preceding
two years. This bill is identical to SB 482.
Patron - Saxman
C
HB1050
Individual income taxes; credit for purchase of long-term care insurance.
Provides a credit against individual income taxes for
certain long-term care insurance premiums paid by the individual during
the taxable year. The amount of the credit for each taxable year shall
equal 10 percent of the amount paid during the taxable year by the individual
in long-term care insurance premiums for long-term care insurance coverage
for himself. The credit would be available beginning with the 2004 taxable
year. Any unused credit may be carried over in the next five taxable years.
To claim the credit, the individual shall attach to his individual income
tax return proof of payment for such premiums, as determined by guidelines
established by the Tax Commissioner. The credit would replace the current
deduction for long-term care insurance.
Patron - Hamilton
C
HB1092
Sales and use tax; optional local tax for transportation and education.
Authorizes any county or city located within the Eighth
Planning District to levy an additional local sales and use tax at a rate
of one percent with at least one-half of the revenues generated from such
tax to be used for transportation purposes and the remaining revenue to
be used for education purposes. The county or city imposing such a tax
must reduce its real estate tax rate so that total real estate tax revenues
are reduced by 40 percent of the additional sales tax revenues. The tax
shall be adopted by local ordinance, which shall become effective on the
later of the first day of a month at least 60 days after its adoption,
or the first day of the month after which at least one other such city
or county shall have adopted such an ordinance and the total population
within the counties or cities having adopted such an ordinance comprises
at least 50 percent of the total population of the counties and cities
located within the Eighth Planning District.
Patron - Scott, J.M.
C
HB1175
Voluntary contribution to the Dr. Martin Luther King, Jr. Commission Fund.
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, 2004. The Fund
provides support for the work of and generates nonstate funds to maintain
the Martin Luther King, Jr. Living History and Public Policy Center. The
Center was created pursuant to State law that required a permanent memorial
to be established to honor Dr. King in the Commonwealth. The Living History
and Public Policy Center, a component of the Dr. Martin Luther King, Jr.
Memorial Commission, is a virtual center composed, initially, of a consortia
of nine public and private institutions of higher education in Virginia
that, among other things, provides educational and cultural programs throughout
the Commonwealth, conducts and produces scholarly research and publications,
interfaces with public and private undergraduate and graduate programs,
supports the academic programs in grades K-12 in public and private schools,
offers doctoral fellowship programs, and produces policy analyses of issues
specific to Virginia and contemporary issues relative to the principles
of Dr. King. The programs and resources of the Center are made available
to all citizens via the Commonwealth's vast technological infrastructure.
This bill is a recommendation of the Dr. Martin Luther King, Jr. Memorial
Commission. This bill is identical to SB 221.
Patron - Bryant
C
HB1184
Individual income tax; voluntary checkoff for Virginia Association of
Centers for Independent Living. Provides a checkoff on
the individual income tax return for refunds to be designated, for taxable
years beginning January 1, 2004, but before January 1, 2009, for the Virginia
Association of Centers for Independent Living, an organization that advocates
for the integration and inclusion of people with disabilities into all
aspects of society.
Patron - Bryant
C
HB1210
Income tax; voluntary contribution of tax refund for cancer research.
Creates an additional income tax checkoff beginning January
1, 2004, for individuals to contribute all or part of their income tax
refunds, or to make payments to the Department of Taxation, to be divided
equally among all entities in the Commonwealth that have been officially
designated as a cancer center by the National Cancer Institute, to be
used for research into the prevention and cure of cancer.
Patron - Hall
C
HB1214
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 and sunsets the current individual income tax deduction for
long-term care insurance premiums. An individual at least 55 years old,
or an individual purchasing long-term care insurance for a Virginia resident
at least 55 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 55 years old. If the long-term
care insurance coverage is for a person at least 65 years old, the tax
credit is the lesser of the individual's income tax liability or the actual
premiums paid in the taxable year. If the long-term care insurance coverage
is for a person at least 55 but less than 65 years old, the tax credit
is the lesser of (i) the actual premiums paid in the taxable year, (ii)
$1,000, or (iii) the individual's income tax liability for the taxable
year. The credit would be available beginning with the 2004 taxable year.
To claim the credit, the individual shall attach to his individual income
tax return proof of payment for such premiums, as determined by guidelines
established by the Tax Commissioner. The bill amends sunsets the current
tax deduction for long-term care insurance effective January 1, 2004.
Individuals itemizing long-term care insurance premiums for insurance
coverage on a resident individual of the Commonwealth at least 55 years
old are not eligible for the tax credit.
Patron - Landes
C
HB1260
Voluntary contribution to the Petersburg Public Education Foundation Fund.
Allows individuals entitled to an income tax refund to
contribute a portion, at least $1, or all of the refund to the Petersburg
Public Education Foundation Fund for taxable years beginning on and after
January 1, 2004. The Fund provides support for the Petersburg City Public
Schools.
Patron - Bland
C
HB1279
Sales and use tax exemptions; governmental and commodities exemptions
for certain energy efficient products. Grants a sales
and use tax exemption, beginning July 1, 2004, for certain energy efficient
products that have been awarded the energy star certification mark based
on requirements developed by the U.S. Environmental Protection Agency
and the U.S. Department of Energy.
Patron - McDougle
C
HB1375
Sales and use tax; exemption. Provides that any person
who contracts to perform services for and furnishes tangible personal
property for use or consumption by the Commonwealth, any political subdivision
of the Commonwealth, or the United States, shall be exempt from sales
and use tax, provided that the Commonwealth, the political subdivision,
or the United States certifies that title to such tangible personal property
will pass to such governmental entity.
Patron - Hugo
C
HB1378
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.
Patron - Fralin
C
HB1382
Newspaper tax. Creates a tax to be imposed on newspaper
publishers at the rate of one cent on every newspaper published and delivered
daily in the Commonwealth. The revenue generated shall be used for environmental
activities throughout the Commonwealth.
Patron - Wardrup
C
HB1401
Income tax; voluntary contribution of refund to Office of Commonwealth
Preparedness Fund. Allows individuals entitled to an
income tax refund to contribute a portion, at least $5, or all of the
refund to the Department of Emergency Management for the Office of Commonwealth
Preparedness, for taxable years beginning on and after January 1, 2005,
but before January 1, 2010. The purpose of the Office of Commonwealth
Preparedness is to develop plans and procedures to be followed throughout
the Commonwealth in the event of terrorists' activities and attacks.
Patron - Reid
C
HB1464
Personal property tax exemption; farm property and products. Requires
localities to exempt farm property and products from the personal property
tax. Current law makes such exemption optional. Any locality that taxed
such property in 2003 shall receive an annual appropriation from the Commonwealth
in an amount equivalent to the total revenue collected by the locality
pursuant to such tax in 2003. The bill has a delayed effective date of
January 1, 2005.
Patron - Lewis
C
SB221
Voluntary contribution to the Dr. Martin Luther King, Jr. Commission Fund.
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, 2004. The Fund
provides support for the work of and generates nonstate funds to maintain
the Martin Luther King, Jr. Living History and Public Policy Center. The
Center was created pursuant to State law that required a permanent memorial
to be established to honor Dr. King in the Commonwealth. The Living History
and Public Policy Center, a component of the Dr. Martin Luther King, Jr.
Memorial Commission, is a virtual center composed, initially, of a consortia
of nine public and private institutions of higher education in Virginia
that, among other things, provides educational and cultural programs throughout
the Commonwealth, conducts and produces scholarly research and publications,
interfaces with public and private undergraduate and graduate programs,
supports the academic programs in grades K-12 in public and private schools,
offers doctoral fellowship programs, and produces policy analyses of issues
specific to Virginia and contemporary issues relative to the principles
of Dr. King. The programs and resources of the Center are made available
to all citizens via the Commonwealth's vast technological infrastructure.
This bill is a recommendation of the Dr. Martin Luther King, Jr. Memorial
Commission. This bill is identical to HB 1175.
Patron - Marsh
C
SB248
Real estate tax; deferral of taxes for certain disabled individuals. Provides
that disability benefits received by wounded or disabled military veterans
may be excluded by a locality when determining eligibility for its tax
deferral programs.
Patron - Deeds
C
SB263
Individual income taxes; credit for purchase of long-term care insurance.
Provides a credit against individual income taxes for
certain long-term care insurance premiums paid by the individual during
the taxable year. The amount of the credit for each taxable year shall
equal 10 percent of the amount paid during the taxable year by the individual
in long-term care insurance premiums for long-term care insurance coverage
for himself. The credit would be available beginning with the 2004 taxable
year. Any unused credit may be carried over in the next five taxable years.
To claim the credit, the individual shall attach to his individual income
tax return proof of payment for such premiums, as determined by guidelines
established by the Tax Commissioner. The credit would replace the current
deduction for long-term care insurance.
Patron - Lambert
C
SB374
Admissions tax; Nelson County. Authorizes Nelson County
to levy admissions tax on all classes of events, thereby removing existing
limitations. Removes reference to Nelson County by population bracket
and identifies the county by name.
Patron - Deeds
C
SB375
Transient occupancy tax; Nelson County. Authorizes Nelson
County to impose a transient occupancy tax not to exceed five percent.
Patron - Deeds
C
SB482
Agricultural Enterprise Zone Act. Allows the Governor
to establish agricultural enterprise zones upon application by localities
with established agricultural or forestal districts, or purchase of development
rights programs. "Qualified farm businesses" located in such zones may
apply to the Department of Agriculture and Consumer Services for certain
state business tax credits and sales tax exemptions. "Qualified farm businesses"
are businesses establishing agricultural or forestal operations and making
a net investment of at least $250,000 and creating at least five new full-time
jobs, or such operations already established if they have increased the
number of full-time employees by at least 10 percent over the preceding
two years. This bill is identical to HB 1045.
Patron - Obenshain
C
SB500
Sales and use tax exemption, Loudoun Healthcare Foundation. Provides
a sales and use tax exemption beginning July 1, 2004, 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
C
SB501
Sales and use tax exemption; Farmwell Hunt Homeowners Association, Inc.
Exempts from the retail sales and use tax beginning July
1, 2004, and ending July 1, 2008, tangible personal property purchased
for use or consumption by a corporation organized as a homeowners association
and operated to perform the functions of a homeowners association.
Patron - Mims
C
SB514
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
C
SB537
Corporate income tax; credit for cigarettes manufactured and exported.
Provides a credit against corporate income taxes for
the number of cigarettes manufactured by a corporation, which are also
exported by the corporation to a foreign country. The bill establishes
taxable year 2004 as a base year for the number of cigarettes exported.
In future taxable years, the credit is computed by comparing the actual
number of cigarettes exported by the manufacturer in the relevant taxable
year with the number of cigarettes it exported in taxable year 2004. The
credit per cigarette will vary based upon this comparison. No credit will
be granted if the number of cigarettes exported is less than 50 percent
of the number exported in taxable year 2004. In cases where the number
of cigarettes exported in a taxable year is 50 percent or more of the
number exported in 2004, the credit for the relevant taxable year will
range from $.20 per 1,000 cigarettes exported up to $.40 per 1,000 cigarettes
exported. The maximum allowable credit to any corporation in a taxable
year is the lesser of $6 million or 50 percent of the corporation's income
tax liability. The total amount of credit that may be taken by all eligible
corporations for any fiscal year is capped at $6 million.
Patron - Stosch
C
SB655
Business license tax phase-out. Requires localities that
impose the business license tax to eliminate it in 25 percent increments
annually beginning no later than July 1, 2005. It also repeals the business
license tax provisions effective July 1, 2008.
Patron - Norment
C
SB667
Taxation; confirmation of receipt of tax returns. Effective
July 1, 2005, requires the Tax Commissioner to provide an electronic method
for business taxpayers to verify receipt by the Department of Taxation
of the taxpayer's tax return and payment.
Patron - Mims
C
SB678
Land preservation tax credit. Provides an annual limit
of $50,000 in tax credit for tax credits that are obtained through a transfer.
The bill also provides that only taxpayers conveying a working farm for
which the taxpayer is the sole proprietor or has at least a 50 percent
ownership interest may transfer the land preservation tax credit.
Patron - Hanger
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