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(Tax) Taxation

HB 29 Budget Bill.

Chief patron: Torian

Summary as introduced:
Budget Bill. Amends Chapter 2 of the Acts of Assembly of 2022, Special Session I, as amended by Chapter 769 of the Acts of Assembly of 2023, as further amended by Chapter 1 of the Acts of Assembly of 2023, Special Session I,

02/28/24 House: House acceded to request
02/28/24 House: Conferees appointed by House
02/28/24 House: Delegates: Torian, Sickles, Bulova, Carr, Austin, Bloxom
02/28/24 Senate: Conferees appointed by Senate
02/28/24 Senate: Senators: Lucas, Deeds, Locke, Boysko, McDougle, Pillion

HB 30 Budget Bill.

Chief patron: Torian

Summary as introduced:
Budget Bill. Provides for all appropriations of the Budget submitted by the Governor of Virginia in accordance with the provisions of § 2.2-1509 of the Code of Virginia, and provides a portion of revenues for the two years ending respectively on the thirtieth day of June 2025 and the thirtieth day of June 2026.

HB 88 Income tax, state; removes sunset on elevated standard deduction amounts.

Chief patron: McNamara

Summary as introduced:
Virginia taxable income; standard deduction. Removes the sunset on elevated standard deduction amounts for single individuals and married persons that was scheduled to expire for taxable years beginning on and after January 1, 2026.

12/28/23 House: Referred to Committee on Finance
01/14/24 House: Impact statement from TAX (HB88)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: Subcommittee recommends continuing to 2025 (7-Y 0-N)
02/07/24 House: Continued to 2025 in Finance

HB 89 Taxation; rate of interest.

Chief patron: McNamara

Summary as introduced:
Taxation; rate of interest. Provides that (i) the rate of interest on omitted taxes and assessments is equal to the Underpayment Rate established by the Internal Revenue Code and (ii) the rate of interest on refunds is equal to the Overpayment Rate for noncorporate taxpayers established by the Internal Revenue Code. Current law provides that (a) the rate of interest on omitted taxes and assessments is equal to the Underpayment Rate plus two percent and (b) the rate of interest on refunds is equal to the Overpayment Rate for noncorporate taxpayers plus two percent.

12/28/23 House: Prefiled and ordered printed; offered 01/10/24 24101578D
12/28/23 House: Referred to Committee on Finance
01/14/24 House: Impact statement from TAX (HB89)
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/13/24 House: Left in Finance

HB 116 Retail Sales and Use tax; exemption for data centers.

Chief patron: Sullivan

Summary as introduced:
Sales and use tax exemption; data centers. Requires data center operators to meet certain energy efficiency standards in order to be eligible for the sales and use tax exemption for data center purchases. Under the bill, a data center operator shall be eligible for the exemption only if such operator demonstrates that (i) its facilities either (a) have a power usage effectiveness score of no greater than 1.2 or (b) for data centers co-located in buildings with other commercial uses, achieve an energy efficiency level of no less than the most efficient 15 percent of similar buildings constructed in the previous five years and (ii) it will procure carbon-free renewable energy and associated renewable energy certificates from facilities equal to 90 percent of its electricity requirements or that its electricity will be otherwise derived from non-carbon-emitting, renewable sources.

01/21/24 House: Impact statement from TAX (HB116)
02/02/24 House: Assigned Finance sub: Subcommittee #2
02/06/24 House: House subcommittee amendments and substitutes offered
02/06/24 House: Subcommittee recommends continuing to 2025 with amendment(s)
02/07/24 House: Continued to 2025 with amendment(s) in Finance

HB 138 Retail sales and use tax holiday; establishes an annual tax holiday that takes place in August.

Chief patron: Green

Summary as introduced:
Annual retail sales and use tax holiday. Establishes an annual retail sales and use tax holiday that takes place on the first full weekend in August beginning on August 1, 2025. During such weekend, state retail sales and use tax will not apply to certain (i) school supplies, (ii) clothing and footwear, (iii) qualified products designated as Energy Star or WaterSense, (iv) portable generators, or (v) hurricane preparedness equipment.

01/02/24 House: Prefiled and ordered printed; offered 01/10/24 24101706D
01/02/24 House: Referred to Committee on Finance
01/15/24 House: Impact statement from TAX (HB138)
01/17/24 House: Stricken from docket by Finance (21-Y 0-N)

HB 165 Income tax, state; deduction for union dues.

Chief patron: Keys-Gamarra

Summary as introduced:
Income tax deduction; union dues. Provides an income tax deduction beginning in taxable year 2024 for the amount paid by an individual for union dues for participation in a labor organization.

01/02/24 House: Prefiled and ordered printed; offered 01/10/24 24101848D
01/02/24 House: Referred to Committee on Finance
01/18/24 House: Assigned Finance sub: Subcommittee #1
01/24/24 House: Impact statement from TAX (HB165)
02/13/24 House: Left in Finance

HB 261 Income tax, state; conformity to Internal Revenue Code.

Chief patron: McNamara

Summary as passed House:

Income tax; rolling conformity. Provides that when Virginia does not conform on a rolling basis to federal tax laws due to any changes in a single act of Congress with an impact of more than $15 million on revenues in the year in which the amendment was enacted or any of the next four years, such nonconformity shall not be considered for purposes of calculating the nonconformity threshold for all amendments in a year with a cumulative projected impact of more than $75 million in the year in which the amendments were enacted or any of the next four years.

02/13/24 House: VOTE: Block Vote Passage (99-Y 0-N)
02/14/24 Senate: Constitutional reading dispensed
02/14/24 Senate: Referred to Committee on Finance and Appropriations
02/18/24 House: Impact statement from TAX (HB261E)
02/27/24 Senate: Continued to 2025 in Finance and Appropriations (15-Y 0-N)

HB 263 Retail Sales and Use Tax; accommodations for transients.

Chief patron: McNamara

Summary as introduced:
Sales and use tax; accommodations for transients. Provides that the term "retail sale" shall include the sale of accommodations to transients for less than 30 days. Under current law, "retail sale" includes such sales to transients for less than 90 days.

01/05/24 House: Prefiled and ordered printed; offered 01/10/24 24101440D
01/05/24 House: Referred to Committee on Finance
01/17/24 House: Impact statement from TAX (HB263)
02/02/24 House: Assigned Finance sub: Subcommittee #2
02/13/24 House: Left in Finance

HB 384 Tangible personal property tax; exemption for indoor agriculture equipment and machinery.

Chief patron: Ware

Summary as introduced:
Tangible personal property tax; indoor agriculture equipment and machinery. Specifies that farm machinery, farm equipment, and farm implements used by an indoor, closed, controlled-environment commercial agricultural facility are a class of farm machinery and farm implements that a locality may exempt from personal property taxation.

01/08/24 House: Prefiled and ordered printed; offered 01/10/24 24100712D
01/08/24 House: Referred to Committee on Finance
01/17/24 House: Impact statement from TAX (HB384)
01/22/24 House: Assigned Finance sub: Subcommittee #2
02/13/24 House: Left in Finance

HB 458 Sales and use tax, local; additional tax authorized in all counties & cities to support schools.

Chief patron: Callsen

Summary as introduced:
Additional local sales and use tax to support schools; referendum. Authorizes all counties and cities to impose an additional local sales and use tax at a rate not to exceed one percent with the revenue used only for capital projects for the construction or renovation of schools if such levy is approved in a voter referendum. Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville are authorized to impose such a tax.

01/08/24 House: Referred to Committee on Finance
01/16/24 House: Impact statement from TAX (HB458)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: Subcommittee recommends incorporating (HB805-Rasoul)
02/13/24 House: Left in Finance

HB 464 Retail Sales and Use Tax; exemptions for nonprofit entities.

Chief patron: Runion

Summary as passed House:

Retail sales and use tax; exemptions for nonprofit entities. Increases from $1 million to $1.5 million the minimum threshold for gross revenue of a nonprofit entity that allows the Department of Taxation to require such entity to provide a financial audit before receiving a federal income tax exemption.

02/28/24 Senate: Committee amendment agreed to
02/28/24 Senate: Engrossed by Senate as amended
02/28/24 Senate: Passed Senate with amendment (39-Y 0-N)
03/01/24 House: Senate amendment agreed to by House (95-Y 1-N)
03/01/24 House: VOTE: Adoption (95-Y 1-N)

HB 473 Income tax, state; employer retention credit.

Chief patron: Coyner

Summary as introduced:
Income tax; interest; employer retention credit. Provides authority to the Tax Commissioner to waive interest on taxpayers that received a federal employer retention tax credit. Such waiver shall only be permissible if the taxpayer was eligible for and received the federal tax credit, filed an amended return, and was found to have an additional tax liability due to the reduction in deductible wages that resulted from claiming the credit.

01/08/24 House: Referred to Committee on Finance
01/18/24 House: Assigned Finance sub: Subcommittee #1
01/20/24 House: Impact statement from TAX (HB473)
01/22/24 House: House subcommittee amendments and substitutes offered
02/13/24 House: Left in Finance

HB 483 Income tax, state; veteran student loan forgiveness.

Chief patron: Garrett

Summary as introduced:
Income tax exclusion; veteran student loan forgiveness. Eliminates the sunset date and expands eligibility for the income tax exclusion for any income received by a disabled veteran of the Armed Forces of the United States from the discharge of federal student loan indebtedness.

01/08/24 House: Referred to Committee on Finance
01/18/24 House: Assigned Finance sub: Subcommittee #1
01/20/24 House: Impact statement from TAX (HB483)
01/22/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 540 Sales and use tax; exemption for food purchased for human consumption & essential personal hygiene.

Chief patron: McNamara

Summary as introduced:
Sales tax; exemption for food purchased for human consumption and essential personal hygiene products. Provides an exemption from local sales and use tax beginning July 1, 2024, for food purchased for human consumption and essential personal hygiene products. The bill also provides an allocation of state revenues to fund the distribution to localities for funding that would have been distributed to them absent the exemption created by the bill. Under current law, such products are exempt from state sales and use tax but are subject to the standard local rate of one percent.

01/09/24 House: Referred to Committee on Finance
01/17/24 House: Impact statement from TAX (HB540)
02/02/24 House: Assigned Finance sub: Subcommittee #2
02/06/24 House: Subcommittee recommends continuing to 2025
02/07/24 House: Continued to 2025 in Finance

HB 541 Income tax, state; deduction for qualified business income.

Chief patron: McNamara

Summary as introduced:
Income tax; deduction for qualified business income. Establishes, beginning with tax year 2024, an individual income tax deduction in an amount equal to 50 percent of certain federal qualified business income deductions, excluding qualified real estate investment trust dividends.

01/09/24 House: Referred to Committee on Finance
01/16/24 House: Impact statement from TAX (HB541)
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/05/24 House: Subcommittee recommends laying on the table (7-Y 1-N)
02/13/24 House: Left in Finance

HB 542 Revenue Stabilization Fund and Revenue Reserve Fund; required deposits.

Chief patron: McNamara

Summary as introduced:
Revenue Stabilization Fund and Revenue Reserve Fund; required deposits. Requires deposit of any revenues that would be required to be deposited in the Revenue Stabilization Fund or Revenue Reserve Fund to be deposited in the Taxpayer Relief Fund, established by the bill, in certain circumstances. Such deposits shall be made if the combined balance in the Revenue Stabilization Fund or Revenue Reserve Fund exceeds 15 percent of the Commonwealth's average annual tax revenues derived from taxes on income and retail sales.

01/17/24 House: Referred from Finance
01/17/24 House: Referred to Committee on Appropriations
01/18/24 House: Assigned App. sub: General Government and Capital Outlay
01/29/24 House: Subcommittee recommends laying on the table (5-Y 2-N)
02/13/24 House: Left in Appropriations

HB 549 Real property taxes; notice by mail of proposed increase.

Chief patron: Walker

Summary as introduced:
Real property taxes; notice by mail of proposed increase. Requires localities, after conducting a reassessment of real estate, to provide notice to property owners by mail of certain information prior to adopting a tax rate that would increase the amount of real property tax collected above 101 percent of the prior year's tax collections. The bill requires the notice to include (i) the dollar and percentage amount of increase that the proposed tax rate would levy on the owner's particular property compared to the previous year's tax levy, (ii) the tax levy on the owner's particular property for the previous tax year and the proposed levy for the current tax year, and (iii) all of the information regarding the proposed tax rate that under current law is required to be posted in a newspaper and a prominent public location.

01/22/24 House: Assigned Finance sub: Subcommittee #2
01/22/24 House: Impact statement from TAX (HB549)
01/23/24 House: House subcommittee amendments and substitutes offered
01/30/24 House: Subcommittee recommends striking from docket (8-Y 0-N)
02/13/24 House: Left in Finance

HB 551 Income tax, Corporate; apportionment of income using single sales factor method.

Chief patron: McNamara

Summary as introduced:
Corporate income tax; apportionment. Allows, for taxable years beginning on and after January 1, 2024, for corporations to apportion their income to the Commonwealth using the single sales factor method. The bill provides that such apportionment method shall be used only if the corporation makes an election to do so.

01/09/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/02/24 House: Impact statement from TAX (HB551)
02/05/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 552 Income tax, Corporate; sourcing of sales other than sales of tangible personal property.

Chief patron: McNamara

Summary as introduced:
Corporate income tax; sourcing of sales other than sales of tangible personal property. Implements market-based corporate income tax sourcing for attributing sales, other than sales of tangible personal property, to Virginia beginning with taxable year 2025.

01/09/24 House: Prefiled and ordered printed; offered 01/10/24 24103622D
01/09/24 House: Referred to Committee on Finance
02/02/24 House: Impact statement from TAX (HB552)
02/07/24 House: Continued to 2025 in Finance

HB 568 Tax exemptions; Confederacy organizations.

Chief patron: Askew

Summary as passed:

Tax exemptions; Confederacy organizations. Eliminates the exemption from state recordation taxes for the Virginia Division of the United Daughters of the Confederacy and eliminates the tax-exempt designation for real and personal property owned by the Virginia Division of the United Daughters of the Confederacy, the General Organization of the United Daughters of the Confederacy, the Confederate Memorial Literary Society, and the Stonewall Jackson Memorial, Incorporated.

02/27/24 House: Enrolled
02/27/24 House: Bill text as passed House and Senate (HB568ER)
02/27/24 House: Impact statement from TAX (HB568ER)
02/27/24 House: Signed by Speaker
03/01/24 Senate: Signed by President

HB 600 Sales and use tax, local; additional tax authorized in all counties & cities to support schools.

Chief patron: Kilgore

01/09/24 House: Referred to Committee on Finance
01/16/24 House: Impact statement from TAX (HB600)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: Subcommittee recommends incorporating (HB805-Rasoul)
02/13/24 House: Left in Finance

HB 616 Sales tax, local; addt'l local tax in City of Newport News for construction & renovation of schools.

Chief patron: Price

Summary as introduced:
Sales tax; additional local tax for schools; City of Newport News. Adds the City of Newport News to the list of localities that are authorized to impose an additional local sales tax at a rate not to exceed one percent in order to provide revenue for the construction or renovation of schools.

01/09/24 House: Referred to Committee on Finance
01/16/24 House: Impact statement from TAX (HB616)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: Subcommittee recommends incorporating (HB805-Rasoul)
02/13/24 House: Left in Finance

HB 621 Income tax, state; eligible low-income taxpayers to claim a refundable tax credit.

Chief patron: Price

Summary as introduced:
Earned income tax credit. Allows eligible low-income taxpayers to claim a refundable income tax credit equal to 20 percent of the federal earned income tax credit claimed that year by the taxpayer for the same taxable year. The bill also states that individuals who would have been entitled to the federal equivalent of this credit but for the fact that the individual, the individual's spouse, or one or more of the individual's children does not have a valid social security number are eligible to claim this credit.

01/29/24 House: Impact statement from TAX (HB621)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: House subcommittee amendments and substitutes offered
02/05/24 House: Subcommittee recommends continuing to 2025 with amendment(s) (7-Y 0-N)
02/07/24 House: Continued to 2025 with amendment(s) in Finance

HB 660 Income tax, corporate; distribution of revenues to state parks.

Chief patron: Kilgore

Summary as introduced:
Corporate income tax; distribution of revenues; state parks. Requires five percent beginning July 1, 2024, of all corporate income tax revenues to be distributed to the State Park Conservation Resources Fund to provide (i) free entry to Virginia state parks and (ii) the conservation, development, maintenance, and operations of state parks acquired or held by the Department of Conservation and Recreation as provided in the appropriation act. The bill provides that such distribution shall not reduce the total amount of annual appropriations for the Department and the Fund below the total amounts appropriated for the most recent fiscal year ending before July 1, 2024, except as provided by a subsequent appropriation act.

01/09/24 House: Referred to Committee on Finance
01/31/24 House: Impact statement from TAX (HB660)
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/05/24 House: Subcommittee recommends laying on the table (7-Y 1-N)
02/13/24 House: Left in Finance

HB 705 Personal property tax; removes sunset date.

Chief patron: Webert

Summary as introduced:
Personal property tax; classification; sunset date. Removes the sunset date from the provision of law that authorizes localities to classify most motor vehicles as a class of property subject to a different rate of tax or rate of assessment from the rate applicable to the general class of tangible personal property. Under current law, such classification would expire beginning with taxable years beginning on or after January 1, 2025.

01/09/24 House: Prefiled and ordered printed; offered 01/10/24 24100880D
01/09/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #2
02/06/24 House: Subcommittee recommends striking from docket (8-Y 0-N)
02/13/24 House: Left in Finance

HB 724 Personal property; taxation rates, restrictions and conditions.

Chief patron: Webert

Summary as introduced:
Personal property taxation rates; restrictions and conditions. Restricts differences in the rates of taxation of personal property for taxpayers who are elderly or handicapped to owners of motor vehicles (i) whose income does not exceed the greater of $80,000 or the median income for the respective locality as published by the U.S. Census Bureau and (ii) whose net financial worth does not exceed $450,000.

The bill provides that certain localities may restrict such differences to owners of motor vehicles (a) whose income does not exceed the greater of $130,000 or the median income for the respective locality as published by the U.S. Census Bureau and (b) whose net financial worth does not exceed $750,000.

The bill requires the General Assembly to assess, every four years, whether such restrictions require adjustment based on the change in the Consumer Price Index.

01/09/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #2
01/29/24 House: Impact statement from TAX (HB724)
01/30/24 House: Subcommittee failed to recommend reporting (4-Y 4-N)
02/13/24 House: Left in Finance

HB 771 Content manufacturing tax credit; removes sunset for the motion picture credit, redesignates credit.

Chief patron: Herring

Summary as introduced:
Content manufacturing tax credit. Removes the sunset for the motion picture tax credit, which currently is set to expire after taxable year 2026, and expands and redesignates the tax credit as the content manufacturing tax credit. The bill increases the total amount of credits that can be allocated to taxpayers to $46.5 million beginning in fiscal year 2024; however, should less than $100 million worth of certain new investments, as described by the bill, occur in Virginia by January 1, 2027, the cap will be reduced to $10 million per fiscal year.

The bill also amends the definition of the "qualifying expenses" eligible for the content manufacturing tax credit to mean certain amounts spent in connection with the production of an eligible project filmed in the Commonwealth. The bill defines "eligible project" to be the production of a motion picture or an episodic television series.

02/07/24 House: Reported from Finance (13-Y 7-N)
02/07/24 House: Referred to Committee on Appropriations
02/08/24 House: Assigned App. sub: Commerce Agriculture & Natural Resources
02/09/24 House: Subcommittee recommends laying on the table (6-Y 2-N)
02/13/24 House: Left in Appropriations

HB 805 Sales and use tax, local; additional tax authorized in counties & cities to support schools.

Chief patron: Rasoul

Summary as passed House:

Additional local sales and use tax to support schools; referendum. Authorizes all counties and cities to impose an additional local sales and use tax at a rate not to exceed one percent with the revenue used only for capital projects for the construction or renovation of schools if such levy is approved in a voter referendum. Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville are authorized to impose such a tax. This bill incorporates HB 60, HB 193, HB 458, HB 600, HB 616, HB 1159, and HB 1437.

02/23/24 Senate: Substitute by Senator McPike agreed to 24108222D-S2
02/23/24 Senate: Engrossed by Senate - floor substitute HB805S2
02/23/24 Senate: Passed Senate with substitute (27-Y 12-N)
02/27/24 House: Senate substitute agreed to by House 24108222D-S2 (71-Y 26-N)
02/27/24 House: VOTE: Adoption (71-Y 26-N)

HB 854 Gasoline and diesel fuel; lowers rate of tax.

Chief patron: Ennis

Summary as introduced:
Rate of tax on gasoline and diesel fuel. Lowers the rate of tax on gasoline and diesel fuel on July 1, 2024, from 26.2 cents per gallon to 21.2 cents per gallon on gasoline and from 27 cents per gallon to 20.2 cents per gallon on diesel fuel, which are the rates that were in effect before July 1, 2021. The bill provides that the rate of tax on gasoline and diesel fuel will return to 26.2 and 27 cents per gallon, respectively, on July 1, 2025, and will be indexed based on the change in the United States Average Consumer Price Index occurring between 2021 and 2024; thereafter, the rate will be indexed annually.

01/09/24 House: Prefiled and ordered printed; offered 01/10/24 24102120D
01/09/24 House: Referred to Committee on Finance
01/22/24 House: Impact statement from DPB (HB854)
02/02/24 House: Assigned Finance sub: Subcommittee #2
02/13/24 House: Left in Finance

HB 865 Income tax, state; establishes a new tax bracket beginning on and after January 1, 2024.

Chief patron: Hernandez

Summary as introduced:
Imposition of income tax. Establishes a new income tax bracket beginning on and after January 1, 2024, that taxes income in excess of $1 million at a rate of 10 percent. The bill provides that 50 percent of revenues generated by the new tax bracket will be dedicated to providing additional basic aid funding for public schools, 30 percent of such revenues will be dedicated to the Child Care Subsidy Program, and 20 percent of such revenues will be dedicated to the Virginia Housing Trust Fund.

01/09/24 House: Referred to Committee on Finance
02/02/24 House: Impact statement from TAX (HB865)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: Subcommittee recommends continuing to 2025 (7-Y 0-N)
02/07/24 House: Continued to 2025 in Finance

HB 875 Tangible personal property; automobile assessment.

Chief patron: Earley

Summary as introduced:
Classification of tangible personal property; automobile assessment. Provides that, for so long as the Regulation for Low Emissions and Zero Emissions Vehicle Standards remains in effect, the fair market value of an automobile with an internal combustion engine shall be the assessed value of such automobile during tax year 2023 or the tax year in which such vehicle was purchased new, whichever is later.

01/17/24 House: Impact statement from TAX (HB875)
01/22/24 House: Assigned Finance sub: Subcommittee #2
01/23/24 House: House subcommittee amendments and substitutes offered
01/23/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 887 Income tax, state; creates a new tax bracket.

Chief patron: Watts

Summary as introduced:
Income taxes. Creates a new income tax bracket for taxable years beginning on and after January 1, 2024, for income in excess of $600,000, which is to be taxed at seven percent. The bill also creates two new tax credits: a child and dependent care tax credit and a family caregiver tax credit. Both tax credits would be refundable for Virginia residents and would be available for taxable years beginning on and after January 1, 2024, but before January 1, 2029. The child and dependent care tax credit would equal 50 percent of the federal tax credit allowed for employment-related expenses for household and dependent care services. A similar income tax deduction for employment-related expenses would be sunsetted by the bill. The family caregiver tax credit would apply to expenses incurred by an individual in caring for an eligible family member, defined in the bill, who requires assistance with one or more activities of daily living, also defined in the bill. The family caregiver tax credit equals 50 percent of eligible expenditures incurred by the caregiver up to $1,000. The family caregiver tax credit shall be available only to taxpayers that have federal adjusted gross income that is no greater than $100,000 for individuals or $200,000 for married persons.

01/09/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/03/24 House: Impact statement from TAX (HB887)
02/05/24 House: Subcommittee recommends continuing to 2025 (7-Y 0-N)
02/07/24 House: Continued to 2025 in Finance

HB 889 Retail Sales and Use tax; levies tax on following services: admissions, charges for recreation, etc.

Chief patron: Watts

Summary as introduced:

Sales and use tax on services. Levies the retail sales and use tax on the following services: admissions; charges for recreation, fitness, or sports facilities; nonmedical personal services or counseling; dry cleaning and laundry services; companion animal care; residential home repair or maintenance, landscaping, or cleaning services when paid for directly by a resident or homeowner; vehicle and engine repair; repairs or alterations to tangible personal property; storage of tangible personal property; delivery or shipping services; travel, event, and aesthetic planning services; and communications services that are not subject to the communications sales and use tax and are not digital personal property.

The bill also imposes the retail sales and use tax on digital personal property, defined in the bill as a digital product delivered electronically that the purchaser owns or has the ability to continually access without having to pay an additional subscription or usage fee to the seller after paying the initial purchase price.

Revenues generated by the taxes levied on services and digital personal property shall be allocated in the same manner as other sales and use taxes; however, revenues from the state portion of the sales and use tax that would be allocated to the general fund shall instead be allocated to school divisions as follows: (i) 60 percent shall be distributed to localities on the basis of school-age population and (ii) 40 percent shall be distributed to localities on the basis of the high-need student population in the locality. The bill clarifies that a high-need student population includes students who are (a) automatically certified for free school meals because of participation in social services programs, (b) participants in a program of special education, or (c) English language learners.

The bill provides certain exemptions to the sales and use tax on services, including health care services that must be performed by a person licensed or certified by the Department of Health Professions, veterinary services, professional services, Internet access services, and services provided by a person who does not receive more than $2,500 per year in gross receipts for performance of such services. The bill exempts services purchased by a nonprofit organization and services purchased by a homeowners' association or by a landlord for the benefit of his tenant. The bill also repeals the service exemptions currently provided for the sale of custom programs and modification of prewritten programs.

The bill imposes the communications sales and use tax on prepaid calling services and on digital subscription services, defined in the bill as services for which the user pays in order to access and use software, reading materials, or other digital data or applications for a defined period of time, which products the user does not own or have permanent access to outside of such period of time.

01/09/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/03/24 House: Impact statement from TAX (HB889)
02/05/24 House: Subcommittee recommends continuing to 2025
02/07/24 House: Continued to 2025 in Finance

HB 960 Historic rehabilitation; maximum amount of tax credit.

Chief patron: Lopez

Summary as passed House:

Historic rehabilitation tax credit; maximum amount of tax credit. Increases from $5 million to $10 million the maximum amount of the historic rehabilitation tax credit, including amounts carried over from prior taxable years, that may be claimed by a taxpayer in any taxable year beginning in taxable year 2024. Beginning July 1, 2024, the aggregate amount of credits available shall not exceed $75 million per fiscal year.

02/28/24 House: House acceded to request
02/28/24 House: Conferees appointed by House
02/28/24 House: Delegates: Lopez, Mundon King, Bloxom
02/28/24 Senate: Conferees appointed by Senate
02/28/24 Senate: Senators: Williams Graves, Surovell, Locke

HB 969 Child tax credit; creates a credit for taxable years 2024 through 2028.

Chief patron: Tran

Summary as introduced:
Child tax credit. Creates a tax credit for taxable years 2024 through 2028 for individuals whose households include dependents younger than the age of 18. The bill provides that the amount of the credit will be equal to $500 for each such dependent for an individual or married persons filing a joint return whose family Virginia adjusted gross income, as defined by Virginia code, does not exceed $100,000. The bill provides that if the taxpayer is a resident of the Commonwealth for the full taxable year, and the amount of such credit exceeds the taxpayer's liability for the taxable year, the excess shall be refunded by the Tax Commissioner.

01/09/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/02/24 House: Impact statement from TAX (HB969)
02/05/24 House: Subcommittee recommends continuing to 2025 (7-Y 0-N)
02/07/24 House: Continued to 2025 in Finance

HB 973 Tangible personal property tax; classification, satellite equipment.

Chief patron: Willett

Summary as introduced:
Tangible personal property tax; classification; satellite equipment. Restricts the special classification for tangible personal property that is used in manufacturing, testing, or operating satellites within a Multicounty Transportation Improvement District to only such property placed in service before January 1, 2025. Such property may be taxed at a lower rate than is applied to other tangible personal property.

01/09/24 House: Referred to Committee on Finance
01/17/24 House: Impact statement from TAX (HB973)
01/25/24 House: Assigned Finance sub: Subcommittee #2
01/30/24 House: Subcommittee recommends striking from docket (8-Y 0-N)
02/13/24 House: Left in Finance

HB 1015 Agricultural best management practices & agricultural equipment purchase tax credits; sunset date.

Chief patron: Wilt

Summary as introduced:
Agricultural best management practices tax credit; agricultural equipment purchase tax credit; sunset date. Extends from January 1, 2025, to January 1, 2030, the sunset date of the individual and corporate agricultural best management practices income tax credit and extends from January 1, 2026, to January 1, 2030, the sunset date of the individual and corporate income tax credit for the purchase of conservation tillage and precision agricultural application equipment.

02/23/24 Senate: Read third time
02/23/24 Senate: Passed Senate (39-Y 0-N)
02/28/24 House: Enrolled
02/28/24 House: Bill text as passed House and Senate (HB1015ER)
02/28/24 House: Impact statement from TAX (HB1015ER)

HB 1036 Nicotine vapor products; localities by ordinance to impose a sales and use tax on products.

Chief patron: Bloxom

Summary as introduced:
Local tax authority; nicotine vapor products. Authorizes localities by ordinance to impose a sales and use tax on nicotine vapor products, defined in the bill to include liquid nicotine in closed and open systems, as such terms are defined in the bill, and includes directives for the administration and enforcement of any such ordinance. The bill also directs the Department of Taxation to consult with localities, the Virginia Association of Counties, and the Virginia Municipal League for implementing and administering such local taxation of nicotine vapor products.

01/10/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #2
01/29/24 House: Impact statement from TAX (HB1036)
01/30/24 House: Subcommittee recommends striking from docket (8-Y 0-N)
02/13/24 House: Left in Finance

HB 1078 Family caregiver; creates a nonrefundable income tax credit for taxable years 2024 through 2028.

Chief patron: Rasoul

Summary as introduced:
Family caregiver tax credit. Creates a nonrefundable income tax credit for taxable years 2024 through 2028 for expenses incurred by an individual in caring for an eligible family member, defined in the bill, who requires assistance with one or more activities of daily living, also defined in the bill. The credit equals 50 percent of eligible expenditures incurred by the caregiver up to $1,000. In order to qualify for the credit, the family caregiver must (i) not receive any compensation or reimbursement for the eligible expenditures and (ii) have federal adjusted gross income that is no greater than $100,000 for an individual or $200,000 for married persons. The bill requires the Tax Commissioner to establish guidelines for claiming the credit and provides that any unused credit may be carried forward by the taxpayer for five taxable years following the taxable year for which the credit was issued.

01/10/24 House: Referred to Committee on Finance
01/29/24 House: Impact statement from TAX (HB1078)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: Subcommittee recommends continuing to 2025 (7-Y 0-N)
02/07/24 House: Continued to 2025 in Finance

HB 1137 Income tax, state; disability income.

Chief patron: Cordoza

Summary as introduced:
Virginia income tax subtractions; disability income. Allows an individual who claims an income tax subtraction for disability income to also claim an income tax deduction for taxpayers age 65 and older.

02/01/24 House: Impact statement from TAX (HB1137)
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/05/24 House: House subcommittee amendments and substitutes offered
02/05/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 1159 Income tax, state; distribution of revenues to localities, funds for local school construction.

Chief patron: Sickles

Summary as introduced:
Individual income tax; distribution of revenues; local school construction. Requires distribution of one percent of the individual income tax revenues collected from residents of a locality to be distributed to that locality. The bill requires such funds to be used for school construction or renovation purposes and to be repaid to the state if used for any other purpose. The bill provides that a locality shall be required to maintain its level of expenditure for public school purposes as a condition of receiving the income tax revenues; however, a locality may reduce its level of expenditure to account for a loss of revenues resulting from a reduction in machinery and tools taxes or license taxes.

01/10/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/03/24 House: Impact statement from TAX (HB1159)
02/05/24 House: Subcommittee recommends incorporating (HB805-Rasoul)
02/13/24 House: Left in Finance

HB 1180 Home instruction and private education; creates a tax credit for taxable years 2024 through 2028.

Chief patron: Scott, P.A.

Summary as introduced:
Tax credit; eligible education expenses; home instruction and private education. Creates a tax credit for taxable years 2024 through 2028 that may be claimed by any parent of a child who receives home instruction or attends a private elementary or secondary school in Virginia. The bill specifies that an eligible individual may claim the credit for certain eligible education expenses, as defined in the bill and imposes certain limitations on who may claim the credit and how much credit may be claimed based on a taxpayer's Virginia adjusted gross income.

01/10/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #1
01/28/24 House: Impact statement from TAX (HB1180)
01/29/24 House: Subcommittee recommends laying on the table (7-Y 1-N)
02/13/24 House: Left in Finance

HB 1183 Land preservation tax credit; maximum amount increase.

Chief patron: Carr

Summary as introduced:
Land preservation tax credit; maximum amount increase. Increases from $75 million to $100 million, beginning in 2024, the maximum amount of land preservation tax credits that may be issued in a calendar year.

01/10/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #1
01/28/24 House: Impact statement from TAX (HB1183)
01/29/24 House: House subcommittee amendments and substitutes offered
02/13/24 House: Left in Finance

HB 1223 Land preservation tax credit; maximum amount increase.

Chief patron: Higgins

01/10/24 House: Prefiled and ordered printed; offered 01/10/24 24103409D
01/10/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #1
01/28/24 House: Impact statement from TAX (HB1223)
02/13/24 House: Left in Finance

HB 1234 Eligible educators; increases tax deduction, creates home school instruction income tax credit.

Chief patron: Earley

Summary as introduced:
Eligible educator income tax deduction; home school instruction income tax credit. Increases from $500 to $1,500 for tax years 2024 through 2026 the amount of income tax deduction certain eligible educators may deduct for qualifying expenses.

The bill also creates a nonrefundable tax credit for taxable years 2024 through 2028 for amounts paid by an individual or married couple filing jointly for their child receiving home instruction for (i) instruction-related materials, including textbooks, workbooks, and supplies, or (ii) courses or programs used in home instruction. The bill provides that the credit equals the lesser of the amount actually paid during the year for such costs or $3,000.

01/25/24 House: Assigned Finance sub: Subcommittee #1
01/28/24 House: Impact statement from TAX (HB1234)
02/05/24 House: House subcommittee amendments and substitutes offered
02/05/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 1275 Home instruction and private school tax; creates an individual, nonrefundable income tax credit.

Chief patron: Higgins

Summary as introduced:
Home instruction and private school tax credit. Creates an individual, nonrefundable income tax credit for taxable years 2024 through 2028 for amounts paid by the parent or legal guardian of a child for the child's home instruction expenses or tuition for attending an accredited private school in Virginia. The bill provides that a taxpayer shall be allowed a credit up to $2,500 that is equal to the lesser of the amount actually paid in the taxable year for such costs or half of the average state standards of quality funding per student per year. The bill provides that the credit may be taken for instruction-related materials, courses, or programs used in home instruction or for private school tuition. The bill provides that the credit is available for two years per child and can be carried forward for five taxable years.

01/10/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #1
01/28/24 House: Impact statement from TAX (HB1275)
01/29/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 1281 Income tax, state; decreases certain taxes, increases amount of tax credit.

Chief patron: Fowler

Summary as introduced:

Taxation. Decreases, beginning in taxable year 2025, the income tax imposed (i) on income less than $3,000, from two percent to 1.75 percent; (ii) on income in excess of $3,000 but less than $5,000, from three percent to 2.65 percent; (iii) on income in excess of $5,000 but less than $17,000, from five percent to 4.4 percent; and (iv) on income in excess of $17,000, from 5.75 percent to 5.1 percent.

The bill increases from 20 to 25 percent, beginning in taxable year 2025, the amount of credit eligible taxpayers may claim pursuant to the income tax credit for low-income taxpayers. The bill also increases the annual aggregate amount of Education Improvement Scholarships tax credits that are available from $25 million to $30 million beginning fiscal year 2025 and each fiscal year thereafter.

The bill defines "digital personal property," "streaming," and "taxable service" for the purposes of the retail sales and use tax. The bill increases the sales and use tax from 4.3 percent to 5.2 percent. Amendments are made throughout the bill to impose the sales and use tax on taxable services in addition to tangible personal property. The bill requires that one half of the additional sales and use tax revenues generated by taxable services and digital personal property that is deposited in the Commonwealth Transportation Fund be distributed to the Transportation Partnership Opportunity Fund, and the additional one half of such revenues be distributed to the Interstate 81 Corridor Improvement Fund until June 30, 2031, or until $400 million has been deposited in the Interstate 81 Corridor Improvement Fund. Certain provisions of the bill have a delayed effective date of January 1, 2025.

02/02/24 House: Assigned Finance sub: Subcommittee #3
02/02/24 House: Impact statement from TAX (HB1281)
02/05/24 House: House subcommittee amendments and substitutes offered
02/05/24 House: Subcommittee recommends continuing to 2025 with amendment(s) (7-Y 0-N)
02/07/24 House: Continued to 2025 with amendment(s) in Finance

HB 1297 Recordation tax; revenues distributed to specified land protection and preservation.

Chief patron: Krizek

Summary as introduced:
Recordation tax revenues; land protection and preservation. Provides that beginning July 1, 2026, after required distributions for transportation and localities under current law, up to $200 million of the remaining recordation tax revenues shall be distributed for specified land protection and preservation purposes.

01/30/24 House: House subcommittee amendments and substitutes offered
01/31/24 House: Committee substitute printed 24105218D-H1
01/31/24 House: Reported from Agriculture, Chesapeake and Natural Resources with substitute (22-Y 0-N)
01/31/24 House: Referred to Committee on Appropriations
02/13/24 House: Left in Appropriations

HB 1308 Tangible personal property; removes $950 million cap on amount of tax relief reimbursed to locality.

Chief patron: Green

Summary as introduced:
Tangible personal property tax relief; rate of taxation. Removes the $950 million cap, beginning in tax year 2025 and all tax years thereafter, on the amount of tangible personal property tax relief reimbursed to localities by the Commonwealth. The bill requires, for tax year 2025 and all tax years thereafter, each county, city, or town to reduce its local tax rate on qualifying vehicles to no greater than $0.000001 per $100 of assessed value of the qualifying vehicle.

01/10/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #2
01/28/24 House: Impact statement from TAX (HB1308)
01/30/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 1394 Income tax, state; subtraction as a result of unlawful discrimination.

Chief patron: Watts

Summary as introduced:
Income tax subtraction; unlawful discrimination. Provides an income tax subtraction for any amount received by a claimant for noneconomic damages as a result of unlawful discrimination, defined in the bill, for taxable years beginning on and after January 1, 2024.

01/16/24 House: Presented and ordered printed 24105148D
01/16/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #1
01/28/24 House: Impact statement from TAX (HB1394)
02/13/24 House: Left in Finance

HB 1400 Retail Sales and Use tax; commercial and industrial exemptions, sunset date.

Chief patron: Morefield

Summary as introduced:
Retail sales and use tax; commercial and industrial exemptions; sunset. Extends the sunset from July 1, 2024, to June 30, 2025, for the retail sales and use tax exemption of certain materials and equipment used in the drilling, extraction, or processing of natural gas or oil and the reclamation of the well area.

01/17/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/02/24 House: Impact statement from TAX (HB1400)
02/05/24 House: Subcommittee recommends striking from docket (8-Y 0-N)
02/13/24 House: Left in Finance

HB 1407 Income tax, state; subtraction for tax, military retirement benefits, uniformed services.

Chief patron: Fowler

Summary as introduced:
Income tax subtraction; military retirement benefits; uniformed services. Expands the definition of "military benefits" to include an income tax subtraction of retirement income received for service in the uniformed services of the United States, which includes the United States Armed Forces, the commissioned corps of the National Oceanic and Atmospheric Administration, and the commissioned corps of the United States Public Health Service. Under current law, the subtraction is only allowed for military retirement income received for service in the United States Armed Forces.

01/17/24 House: Presented and ordered printed 24104146D
01/17/24 House: Referred to Committee on Finance
01/31/24 House: Impact statement from TAX (HB1407)
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/13/24 House: Left in Finance

HB 1411 Motor vehicle sales and use tax; definition of sale price.

Chief patron: Marshall

Summary as introduced:
Motor vehicle sales and use tax; definition of sale price. Excludes from the sale price for determining motor vehicle sales and use tax the amount of any credit given by the seller for any motor vehicle taken as a trade-in.

01/17/24 House: Referred to Committee on Finance
01/30/24 House: Impact statement from DPB (HB1411)
02/02/24 House: Assigned Finance sub: Subcommittee #2
02/06/24 House: Subcommittee recommends striking from docket (8-Y 0-N)
02/13/24 House: Left in Finance

HB 1414 Estate tax; reinstates tax for persons dying on and after July 1, 2024.

Chief patron: Bennett-Parker

Summary as introduced:
Reinstatement of the estate tax. Reinstates the estate tax for persons dying on and after July 1, 2024. The bill provides that no estate tax shall be imposed on a gross estate if the majority of the assets of the estate are an interest in a closely held business or a working farm. The bill designates revenues from the estate tax to be used for early childhood care and education purposes.

02/03/24 House: Impact statement from TAX (HB1414)
02/05/24 House: House subcommittee amendments and substitutes offered
02/05/24 House: Subcommittee recommends continuing to 2025 with substitute (7-Y 0-N)
02/07/24 House: Committee substitute posted to LIS only 24107085D-H1
02/07/24 House: Continued to 2025 with substitute in Finance

HB 1429 Tangible personal property tax; exemption for indoor agriculture equipment and machinery.

Chief patron: Laufer

Summary as passed House:

Tangible personal property tax; indoor agriculture equipment and machinery. Specifies that farm machinery, farm equipment, and farm implements used by an indoor, closed, controlled-environment commercial agricultural facility are a class of farm machinery and farm implements that a locality may exempt from personal property taxation. This bill incorporates HB 384 and is identical to SB 483.

02/26/24 House: Enrolled
02/26/24 House: Bill text as passed House and Senate (HB1429ER)
02/26/24 House: Signed by Speaker
02/27/24 House: Impact statement from TAX (HB1429ER)
02/28/24 Senate: Signed by President

HB 1436 Sales tax revenues; entertainment arena.

Chief patron: Anthony

Summary as passed House:

Sales tax revenues; entertainment arena. Adds entertainment arena to the definition of public facility to allow a locality to collect all sales tax revenues generated by transactions at such a facility, provided that a locality owns an interest in the facility and contributes to financing its construction. The bill also allows a municipality to issue bonds to finance a public facility on or after July 1, 2024, but prior to July 1, 2027, and adds Henrico County to the list of eligible localities.

02/13/24 House: Read third time and passed House (66-Y 33-N)
02/13/24 House: VOTE: Passage (66-Y 33-N)
02/14/24 Senate: Constitutional reading dispensed
02/14/24 Senate: Referred to Committee on Finance and Appropriations
02/20/24 House: Impact statement from TAX (HB1436E)

HB 1437 Sales tax; school construction.

Chief patron: Hayes

Summary as introduced:
Sales tax; school construction. Adds the City of Portsmouth to the list of localities that, under current law, are authorized to impose an extra one percent local sales tax to provide revenue for constructing or renovating schools.

01/18/24 House: Referred to Committee on Finance
01/29/24 House: Impact statement from TAX (HB1437)
02/02/24 House: Assigned Finance sub: Subcommittee #3
02/05/24 House: Subcommittee recommends incorporating (HB805-Rasoul)
02/13/24 House: Left in Finance

HB 1444 State sales and use tax; distribution based on population of cities and counties ages 5 to 19.

Chief patron: Watts

Summary as introduced:
Distribution of state sales and use tax based on the population of cities and counties ages five to 19 and for the state's share of Standards of Quality basic aid payments.

02/06/24 House: Subcommittee recommends reporting (8-Y 0-N)
02/06/24 House: Subcommittee recommends referring to Committee on Appropriations
02/07/24 House: Reported from Finance (19-Y 0-N)
02/07/24 House: Referred to Committee on Appropriations
02/13/24 House: Left in Appropriations

HB 1446 Real property tax; assessment of real property used for affordable housing.

Chief patron: Coyner

Summary as introduced:
Real property tax; assessment of real property used for affordable housing. Requires the duly authorized real estate assessor of a locality to appraise affordable rental housing in accordance with the income approach, as described by the bill. The bill provides that, should the duly authorized real estate assessor fail to follow generally accepted appraisal practices, the assessment will not be entitled to a presumption of correctness, and if the owner then successfully appeals such assessment, the locality shall reimburse the owner for attorney fees and costs incurred.

02/02/24 House: Assigned Finance sub: Subcommittee #2
02/06/24 House: House subcommittee amendments and substitutes offered
02/06/24 House: Subcommittee recommends reporting with substitute (6-Y 2-N)
02/07/24 House: Committee substitute posted to LIS only 24107217D-H1
02/07/24 House: Continued to 2025 with substitute in Finance (12-Y 9-N)

HB 1447 Pass-through entity tax; penalty waiver.

Chief patron: Coyner

Summary as introduced:
Pass-through entity tax; penalty waiver. Directs the Department of Taxation to waive penalties imposed on any pass-through entity paying the pass-through entity income tax for taxable years beginning on and after January 1, 2021, but before January 1, 2024. The waiver shall not apply to any penalty imposed due to a false or fraudulent action by the taxpayer with the intention of evading the tax.

01/18/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/04/24 House: Impact statement from TAX (HB1447)
02/05/24 House: Subcommittee recommends striking from docket (8-Y 0-N)
02/13/24 House: Left in Finance

HB 1470 Income tax, state; deduction for union dues.

Chief patron: Keys-Gamarra

01/19/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #1
01/27/24 House: Impact statement from TAX (HB1470)
01/29/24 House: Subcommittee recommends continuing to 2025
01/31/24 House: Continued to 2025 in Finance

HB 1483 Meals tax; statute of limitations, penalties and interest.

Chief patron: McQuinn

Summary as passed House:

Local tax; penalties and interest. Requires localities to apply voluntary payments made by a taxpayer to the tax return that accompanies such payment or according to instructions sent with such payment. The bill also states that a city's director of finance may waive a taxpayer's local tax penalties and interest when in the best interest of the locality. The bill contains an emergency clause.

EMERGENCY

02/13/24 House: VOTE: Passage Emergency (99-Y 0-N)
02/14/24 Senate: Constitutional reading dispensed
02/14/24 Senate: Referred to Committee on Finance and Appropriations
02/20/24 House: Impact statement from TAX (HB1483H1)
02/27/24 Senate: Passed by indefinitely in Finance and Appropriations (15-Y 0-N)

HB 1502 Tangible personal property tax; classification of certain vehicles, removes sunset date.

Chief patron: Willett

Summary as passed House:

Personal property tax; classification; sunset date. Removes the sunset date from the provision of law that authorizes localities to classify most motor vehicles as a class of property subject to a different rate of tax or rate of assessment from the rate applicable to the general class of tangible personal property. Under current law, such classification would expire beginning with taxable years beginning on or after January 1, 2025. This bill incorporates HB 422.

02/29/24 Senate: Senate insisted on amendments (39-Y 0-N)
02/29/24 Senate: Senate requested conference committee
03/01/24 House: House acceded to request
03/01/24 House: Conferees appointed by House
03/01/24 House: Delegates: Willett, Hernandez, Orrock

HB 1503 Omitted taxes; installment agreements.

Chief patron: Jones

Summary as introduced:
Omitted taxes; installment agreements.

02/07/24 Senate: Referred to Committee on Finance and Appropriations
02/27/24 Senate: Constitutional reading dispensed (39-Y 0-N)
02/27/24 Senate: Reported from Finance and Appropriations (15-Y 0-N)
02/28/24 Senate: Read third time
02/28/24 Senate: Passed Senate (39-Y 0-N)

HB 1508 Assessment of omitted taxes; erroneous payments.

Chief patron: Wilt

Summary as passed House:

Assessment of omitted taxes; erroneous payments. Provides that any retail sales tax payment erroneously remitted by a taxpayer to the Department of Taxation shall be applied to the taxpayer's delinquent use tax accounts. The taxpayer must provide evidence of the erroneous sales tax collected and remitted in each transaction. The provisions of this bill do not apply in the case of (i) the taxpayer already applying for and receiving the relief described in this bill or (ii) a false or fraudulent action by the taxpayer with the intention of evading the payment of the tax. Further, the taxpayer must show that the erroneous retail sales tax has been refunded to the purchaser or credited to the purchaser's account prior to receiving a refund from Department of Taxation.

02/23/24 Senate: Committee amendment agreed to
02/23/24 Senate: Engrossed by Senate as amended
02/23/24 Senate: Passed Senate with amendment (39-Y 0-N)
02/27/24 House: Senate amendment agreed to by House (92-Y 5-N)
02/27/24 House: VOTE: Adoption (92-Y 5-N)

HB 1517 Adoption; creates tax credit for qualified expenses.

Chief patron: Earley

Summary as introduced:
Adoption tax credit. Creates a tax credit for taxable years 2024 through 2028 that may be claimed by an individual or married couple filing jointly for qualified adoption expenses, as defined in the bill. The bill imposes certain limitations on who may claim this credit and how much credit may be claimed based on a taxpayer's Virginia adjusted gross income.

01/25/24 House: Assigned Finance sub: Subcommittee #1
01/28/24 House: Impact statement from TAX (HB1517)
02/05/24 House: House subcommittee amendments and substitutes offered
02/05/24 House: Subcommittee recommends laying on the table (5-Y 3-N)
02/13/24 House: Left in Finance

HB 1518 Research and development expenses; tax credits.

Chief patron: Glass

Summary as passed House:

Research and development expenses tax credits. Creates a step-rate reimbursement structure for the major research and development expenses tax credit in an amount equal to (i) ten percent, up to the first $1 million, of the difference between (a) Virginia qualified research and development expenses paid or incurred by the taxpayer during the taxable year and (b) 50 percent of the average Virginia qualified research and development expenses paid or incurred by the taxpayer for the three taxable years immediately preceding the taxable year for which the credit is being determined and (ii) five percent of such difference in excess of $1 million. Beginning in taxable year 2023, the bill also (a) imposes an annual per taxpayer major research and development expenses tax credit cap of $300,000, except that such cap increases to $400,000 if the Virginia qualified research was conducted in conjunction with a public or private institution of higher education in the Commonwealth, (b) reduces from $24 million to $16 million the aggregate cap on the major research and development expenses tax credit granted for each fiscal year, and (c) increases from $7.77 million to $15.77 million the aggregate cap on the research and development expenses tax credit granted for each fiscal year beginning in taxable year 2023.

02/27/24 Senate: Constitutional reading dispensed (39-Y 0-N)
02/27/24 Senate: Reported from Finance and Appropriations (15-Y 0-N)
02/28/24 Senate: Read third time
02/28/24 Senate: Passed Senate
02/28/24 Senate: Passed Senate (39-Y 0-N)

HB 1524 Mobile machinery and equipment; tax credit for purchase.

Chief patron: Lopez

Summary as introduced:
Tax credit for purchase of mobile machinery and equipment used by road contractors for processing recyclable asphalt materials on pavements and roadways. Creates a nonrefundable tax credit for taxable years 2025 through 2029 in an amount equal to 20 percent of the purchase price paid, as defined in the bill, during the taxable year for machinery and equipment used to reclaim, recycle, or reprocess existing asphalt materials from pavements and roadways. The bill requires a taxpayer to submit invoices with an income tax return verifying the amount of purchase price paid for such machinery and equipment. The bill provides a $3 million aggregate annual cap on the number of credits to be distributed, as administered by the Department of Taxation. Any credit not used for the taxable year in which the purchasing price for recycling machinery was paid may be carried over for the next 10 years until the total credit amount is used.

01/19/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/04/24 House: Impact statement from TAX (HB1524)
02/05/24 House: Subcommittee recommends continuing to 2025
02/07/24 House: Continued to 2025 in Finance

HB 1527 Income tax, state; electric vehicle charging equipment tax credit.

Chief patron: Cordoza

Summary as introduced:
Electric vehicle charging equipment tax credit. Provides an income tax credit for the costs of installing electric vehicle charging equipment at a gas station. The credit shall extend for five years once claimed. For the first year of the credit, the amount of the credit shall be 100 percent of the allowable costs, defined in the bill, which are incurred in the taxable year or $5,000, whichever is less. For the subsequent four years of the credit, the amount of the credit shall be one percent of the allowable costs incurred by the taxpayer in the taxable year.

01/19/24 House: Presented and ordered printed 24104254D
01/19/24 House: Referred to Committee on Finance
02/02/24 House: Assigned Finance sub: Subcommittee #1
02/04/24 House: Impact statement from TAX (HB1527)
02/13/24 House: Left in Finance

HB 1535 Food and beverage or meals tax; discount for collection.

Chief patron: Jones

Summary as passed House:

Food and beverage tax; meals tax; discount. Allows a county, city, or town to provide a commission to a business for collecting and remitting to the locality a meals tax or a food and beverage tax regardless of whether the business is delinquent on the collection and remittance of such tax. The rate of such commission shall be set by ordinance and shall not exceed 5 percent.

02/13/24 House: VOTE: Passage (99-Y 0-N)
02/14/24 Senate: Constitutional reading dispensed
02/14/24 Senate: Referred to Committee on Finance and Appropriations
02/20/24 House: Impact statement from TAX (HB1535E)
02/27/24 Senate: Passed by indefinitely in Finance and Appropriations (15-Y 0-N)

HB 1536 Retail Sales and Use Tax; exemption for certain baby products.

Chief patron: Mundon King

Summary as introduced:
Sales tax exemption; certain baby products.

01/19/24 House: Referred to Committee on Finance
01/25/24 House: Assigned Finance sub: Subcommittee #2
01/28/24 House: Impact statement from TAX (HB1536)
01/30/24 House: Subcommittee recommends continuing to 2025
01/31/24 House: Continued to 2025 in Finance

HJ 40 Land value; DHCD to study tax implications of local governing bodies implementing a tax.

Chief patron: Shin

Summary as introduced:
Study; Department of Housing and Community Development; tax implications of implementing a land value tax; report. Directs the Department of Housing and Community Development to study tax implications of local governing bodies implementing a land value tax.

01/09/24 House: Prefiled and ordered printed; offered 01/10/24 24102341D
01/09/24 House: Referred to Committee on Rules
02/01/24 House: Continued to 2025 in Rules

SB 29 Budget Bill.

Chief patron: Lucas

02/22/24 Senate: Constitutional reading dispensed (40-Y 0-N)
02/22/24 Senate: Passed Senate (38-Y 2-N)
02/26/24 House: Placed on Calendar
02/26/24 House: Read first time
02/26/24 House: Referred to Committee on Appropriations

SB 58 Retail sales and use tax holiday; establishes an annual tax holiday that takes place in August.

Chief patron: Craig

Summary as introduced:
Annual retail sales and use tax holiday. Establishes an annual retail sales and use tax holiday that takes place on the first full weekend in August beginning in 2025. During such weekend, state retail sales and use tax will not apply to certain (i) school supplies, (ii) clothing and footwear, (iii) qualified products designated as Energy Star or WaterSense, (iv) portable generators, or (v) hurricane preparedness equipment.

12/26/23 Senate: Prefiled and ordered printed; offered 01/10/24 24102226D
12/26/23 Senate: Referred to Committee on Finance and Appropriations
01/14/24 Senate: Impact statement from TAX (SB58)
01/16/24 Senate: Senate committee, floor amendments and substitutes offered
01/16/24 Senate: Incorporated by Finance and Appropriations (SB116-Lucas) (15-Y 0-N)

SB 64 Retail sales and use tax holiday; establishes an annual tax holiday that takes place in August.

Chief patron: Durant

Summary as introduced:
Annual retail sales and use tax holiday. Establishes an annual retail sales and use tax holiday that takes place on the first full weekend in August beginning in 2025. During such weekend, state retail sales and use tax will not apply to certain (i) school supplies, (ii) clothing and footwear, (iii) qualified products designated as Energy Star or WaterSense, (iv) portable generators, or (v) hurricane preparedness equipment.

12/27/23 Senate: Prefiled and ordered printed; offered 01/10/24 24103195D
12/27/23 Senate: Referred to Committee on Finance and Appropriations
01/15/24 Senate: Impact statement from TAX (SB64)
01/16/24 Senate: Incorporated by Finance and Appropriations (SB116-Lucas) (15-Y 0-N)

SB 103 Motor vehicle sales and use tax; exemptions for vehicle transfers, limited liability companies.

Chief patron: Sturtevant

Summary as introduced:
Motor vehicle sales and use tax; exemptions; transfers; limited liability companies. Provides that no motor vehicle sales and use tax shall be imposed on vehicle transfers from (i) an individual, partnership, or limited liability company to a corporation or limited liability company or (ii) from a corporation or limited liability company to an individual, partnership, or limited liability company if (a) the transfer is incidental to the formation, organization, or dissolution of a corporation or limited liability company in which the individual, partnership, or limited liability company holds the majority interest in both entities and (b) the transfer to a limited liability company is not a precursor to a transfer of control of the assets of the company to avoid motor vehicle sales and use taxes.

Under current law, transfers from (1) an individual or partnership to a corporation or limited liability company or (2) from a corporation or limited liability company to an individual or partnership are exempt from the motor vehicle sales and use tax if the transfer is incidental to the formation, organization, or dissolution of a corporation or limited liability company in which the individual or partnership holds the majority interest.

01/03/24 Senate: Prefiled and ordered printed; offered 01/10/24 24102676D
01/03/24 Senate: Referred to Committee on Finance and Appropriations
02/06/24 Senate: Passed by indefinitely in Finance and Appropriations (14-Y 1-N)

SB 110 Sales tax; exemption for food purchased for human consumption and essential personal hygiene.

Chief patron: Suetterlein

01/03/24 Senate: Prefiled and ordered printed; offered 01/10/24 24103537D
01/03/24 Senate: Referred to Committee on Finance and Appropriations
01/14/24 Senate: Impact statement from TAX (SB110)
01/30/24 Senate: Passed by indefinitely in Finance and Appropriations (10-Y 5-N)

SB 116 Retail sales and use tax holiday; establishes an annual tax holiday that takes place in August.

Chief patron: Lucas

Summary as passed Senate:

Annual retail sales and use tax holiday. Establishes an annual retail sales and use tax holiday that takes place on the first full weekend in August beginning in 2025 through 2029. During such weekend, state retail sales and use tax will not apply to certain (i) school supplies, (ii) clothing and footwear, (iii) qualified products designated as Energy Star or WaterSense, (iv) portable generators, or (v) hurricane preparedness equipment.

02/26/24 Senate: Senate acceded to request (40-Y 0-N)
02/26/24 Senate: Conferees appointed by Senate
02/26/24 Senate: Senators: Lucas, Locke, Reeves
02/28/24 House: Conferees appointed by House
02/28/24 House: Delegates: Reid, Watts, Kent

SB 183 Income tax, state; eligible low-income taxpayers to claim a refundable tax credit.

Chief patron: Rouse

01/08/24 Senate: Prefiled and ordered printed; offered 01/10/24 24103117D
01/08/24 Senate: Referred to Committee on Finance and Appropriations
01/28/24 Senate: Impact statement from TAX (SB183)
02/06/24 Senate: Senate subcommittee amendments and substitutes offered
02/07/24 Senate: Continued to 2025 in Finance and Appropriations (15-Y 0-N)

SB 192 Sales and use tax exemption; data centers.

Chief patron: Subramanyam

01/08/24 Senate: Prefiled and ordered printed; offered 01/10/24 24102742D
01/08/24 Senate: Referred to Committee on Finance and Appropriations
01/23/24 Senate: Impact statement from TAX (SB192)
01/30/24 Senate: Continued to 2025 in Finance and Appropriations (14-Y 1-N)

SB 194 Tangible personal property tax; classification of certain vehicles, removes sunset date.

Chief patron: VanValkenburg

Summary as passed Senate:

Tangible personal property tax; classification; certain vehicles. Extends from January 1, 2025, to January 1, 2027, the sunset on authorization for localities to assign a rate of tax or assessment different from the general tangible personal property rate on certain automobiles, trucks, motor vehicles for use by the handicapped, motorcycles, mopeds, all-terrain vehicles, off-road motorcycles, campers, and other recreational vehicles. Under current law, such authorization is limited to taxable years 2022 through 2024.

02/26/24 Senate: Senate acceded to request (40-Y 0-N)
02/26/24 Senate: Conferees appointed by Senate
02/26/24 Senate: Senators: VanValkenburg, Deeds, McDougle
02/28/24 House: Conferees appointed by House
02/28/24 House: Delegates: Willett, Hernandez, Orrock

SB 294 Local tax; penalties and interest.

Chief patron: DeSteph

Summary as introduced:
Local tax; penalties and interest. Requires localities to apply voluntary payments made by a taxpayer to the tax return that accompanies such payment. The bill provides that no interest will accrue on any unpaid balances 90 days after the date on which a taxpayer files an application for correction by the locality, an administrative appeal, or an application to court for meals taxes, until such appeal is resolved. The bill creates notice procedures prior to a locality making a levy on property due to delinquent tax payments.

01/09/24 Senate: Prefiled and ordered printed; offered 01/10/24 24104403D
01/09/24 Senate: Referred to Committee on Finance and Appropriations
01/19/24 Senate: Impact statement from TAX (SB294)
02/06/24 Senate: Senate committee, floor amendments and substitutes offered
02/06/24 Senate: Passed by indefinitely in Finance and Appropriations (10-Y 5-N)

SB 419 Family caregiver; creates a nonrefundable income tax credit for taxable years 2024 through 2028.

Chief patron: Head

01/09/24 Senate: Prefiled and ordered printed; offered 01/10/24 24104631D
01/09/24 Senate: Referred to Committee on Finance and Appropriations
01/27/24 Senate: Impact statement from TAX (SB419)
02/07/24 Senate: Continued to 2025 in Finance and Appropriations (11-Y 4-N)

SB 451 Income tax, corporate; distribution of revenues to state parks.

Chief patron: Marsden

01/09/24 Senate: Prefiled and ordered printed; offered 01/10/24 24100153D
01/09/24 Senate: Referred to Committee on Finance and Appropriations
01/27/24 Senate: Impact statement from TAX (SB451)
02/06/24 Senate: Continued to 2025 in Finance and Appropriations (15-Y 0-N)

SB 459 Income tax, state; rolling conformity.

Chief patron: Marsden

Summary as introduced:
Income tax; rolling conformity. Provides that when Virginia does not conform on a rolling basis to federal tax laws due to any changes in a single act of Congress with an impact of more than $15 million on revenues in the year in which the amendment was enacted or any of the next four years, such nonconformity shall not be considered for purposes of calculating the nonconformity threshold for all amendments in a year with a cumulative projected impact of more than $75 million in the year in which the amendments were enacted or any of the next four years.

01/09/24 Senate: Prefiled and ordered printed; offered 01/10/24 24101327D
01/09/24 Senate: Referred to Committee on Finance and Appropriations
01/16/24 Senate: Impact statement from TAX (SB459)
02/06/24 Senate: Senate subcommittee amendments and substitutes offered
02/07/24 Senate: Continued to 2025 in Finance and Appropriations (13-Y 2-N)

SB 483 Tangible personal property tax; exemption for indoor agriculture equipment and machinery.

Chief patron: Aird

Summary as introduced:

02/27/24 Senate: Enrolled
02/27/24 Senate: Bill text as passed Senate and House (SB483ER)
02/27/24 Senate: Impact statement from TAX (SB483ER)
02/27/24 House: Signed by Speaker
03/01/24 Senate: Signed by President