HB 165 Meals and food and beverage taxes, local; exemption for sales of meals for fundraising purposes.

Chief patron: Farrell

Summary as introduced:
Local meals and food and beverage taxes; exemption. Provides that the exemption from local meals taxes for sales of meals for fundraising purposes by certain organizations applies when the revenues are used by an entity exempt from income tax pursuant to § 501(c)(19) of the Internal Revenue Code for nonprofit fraternal purposes. Under current law the organizations are exempt on such sales if the revenue is used for nonprofit educational, charitable, benevolent, or religious purposes.

01/16/16 House: Impact statement from TAX (HB165)
02/02/16 House: Assigned Finance sub: Subcommittee #2
02/03/16 House: Subcommittee recommends continuing to 2017
02/08/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 215 Income tax, state; annual adjustment for inflation.

Chief patron: LeMunyon

Summary as introduced:
Individual income tax; adjusted for inflation. Adjusts Virginia's individual income tax brackets, standard deduction, and personal exemption amounts annually beginning with the 2016 taxable year by the percentage increase in the Consumer Price Index for all urban consumers (CPI-U), for all items, from July 1 through June 30 for the year immediately preceding the taxable year.

02/01/16 House: Impact statement from TAX (HB215)
02/09/16 House: Assigned Finance sub: Subcommittee #1
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 539 Income tax, corporate; lowers rate of taxation.

Chief patron: Watts

Summary as introduced:
Corporate income tax; rate of taxation. Lowers the corporate income tax rate from six percent to 5.75 percent for taxable years beginning on or after January 1, 2017.

01/16/16 House: Impact statement from TAX (HB539)
02/09/16 House: Assigned Finance sub: Subcommittee #1
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 540 Income tax, state; increases deduction for personal exemptions.

Chief patron: Watts

Summary as introduced:
Virginia taxable income; deduction for personal exemptions. Increases the deduction, for purposes of computing Virginia taxable income, for personal exemptions. For taxable years beginning on and after January 1, 2017, a taxpayer may deduct $1,000 for each personal exemption allowable to the taxpayer on federal income taxes; current law allows a deduction of $930 per exemption. A blind or aged taxpayer may deduct an additional personal exemption in the amount of $900; current law allows an additional deduction of $800.

02/02/16 House: Impact statement from TAX (HB540)
02/09/16 House: Assigned Finance sub: Subcommittee #1
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 545 License tax, local; staffing firm deductions.

Chief patron: Watts

Summary as introduced:
Local license tax; staffing firms. Provides that a staffing firm may deduct from otherwise taxable gross receipts salaries, wages, and other benefits it pays to independent contractors hired to provide professional employer organization services or temporary help services on behalf of or for the benefit of the staffing firm's clients.

Under current law, a staffing firm may deduct from otherwise taxable gross receipts salaries, wages, and other benefits it pays to its employees providing such services for clients of the staffing firm.

The provisions of the bill are effective for license years beginning on or after January 1, 2017.

01/15/16 House: Impact statement from TAX (HB545)
02/02/16 House: Assigned Finance sub: Subcommittee #1
02/03/16 House: Subcommittee recommends continuing to 2017
02/08/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 693 Income tax, state; adjusts standard deduction for inflation.

Chief patron: Carr

Summary as introduced:
Standard deduction; adjusted for inflation. Adjusts the individual income tax standard deduction annually beginning with the 2017 taxable year by the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), for all items, from July 1 through June 30 for the year immediately preceding the taxable year.

01/24/16 House: Impact statement from TAX (HB693)
02/02/16 House: Assigned Finance sub: Subcommittee #1
02/03/16 House: Subcommittee recommends continuing to 2017
02/08/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 843 Income tax, state; reduces top marginal tax rate.

Chief patron: Cline

Summary as introduced:
Individual income tax rate. Reduces the top marginal individual income tax rate, currently 5.75 percent, whenever an individual income tax credit expires. The 5.75 percent rate would be reduced by an amount that generates approximately the same amount of additional annual revenue anticipated to be received from the expiration of the credit. The Tax Commissioner would determine the amount of the reduction rounded to the nearest 0.01 percent.

The adjusted tax rate would become effective beginning with the taxable year immediately following the first taxable year for which the credit is no longer allowable.

If the 5.75 percent rate is ever reduced to a 0.00 percent rate for a taxable year, then the five percent marginal income tax rate would be imposed on all taxable income in excess of $5,000. Currently, the five percent marginal income tax rate is imposed on income in excess of $5,000 but not in excess of $17,000.

The provisions of the bill would become effective beginning with the 2016 taxable year.

01/30/16 House: Impact statement from TAX (HB843)
02/09/16 House: Assigned Finance sub: Subcommittee #1
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 877 Taxation, Department of; increases period taxpayer may file an amended return.

Chief patron: Hugo

Summary as introduced:
The Department of Taxation; amended returns; statute of limitations. Increases the period in which a taxpayer may file an amended return with the Department of Taxation from three years to five years.

02/01/16 House: Impact statement from TAX (HB877)
02/09/16 House: Assigned Finance sub: Subcommittee #2
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 966 Income tax, corporate; apportionment of income to Virginia.

Chief patron: Davis

Summary as introduced:

Apportionment of income; corporate income tax. Makes several changes to the current method used by multistate corporations to apportion income to Virginia for purposes of the corporate income tax, including (i) establishing sales as the sole factor to be used in apportioning income, with such single sales factor apportionment phased in and first effective beginning with taxable year 2019; (ii) adopting market-based sourcing as the approach for sourcing sales of services and nontangible personal property to Virginia; and (iii) eliminating the requirements placed on manufacturing companies electing single sales factor apportionment to maintain certain employment and wage levels.

In general, current law requires multistate corporations to apportion taxable income to Virginia using a double-weighted sales factor formula, which consists of a sales factor that is double-weighted, a property factor, and a payroll factor to apportion the income. Under single sales factor apportionment, only the sales factor will be used by a multistate corporation to apportion taxable income to Virginia. Under the bill, most multistate corporations will be required to use single sales factor apportionment beginning with taxable year 2019, with manufacturing companies being one exception as discussed below.

Currently, manufacturing companies are allowed to elect single sales factor apportionment in lieu of double-weighted sales factor apportionment. However, manufacturing companies electing single sales factor apportionment must meet certain employment and wage levels for the first three taxable years in which single sales factor apportionment is used. A monetary penalty is imposed upon any manufacturing company that has elected to apportion income using a single sales factor but that fails to meet the employment and wage level requirements. Under the bill, manufacturing companies may adopt single sales factor apportionment or continue to use double-weighted sales factor apportionment. The bill provides that a manufacturing company that adopts singles sales factor apportionment in a taxable year beginning on or after July 1, 2016, will not be subject to any monetary penalty but may not revoke the election to use single sales factor apportionment.

The bill implements market-based sourcing for attributing sales to Virginia other than sales of tangible personal property beginning with taxable year 2017. The bill provides that sales made by certain communications services or Internet access services providers, other than sales of tangible personal property, that are attributable to Virginia under market-based sourcing will be multiplied by a factor of 0.5 for purposes of computing such companies' sales factors. The multiplication factor of 0.5 will be applied to such sales if the provider, or an affiliated group that includes a communications services or Internet access services provider, during the taxable year expended at least $100 million relating to communications services or Internet access services in the form of tangible personal property placed in service in Virginia or salaries and wages paid for its employees in Virginia. In addition, the bill provides that certain sales of national defense contractors will be excluded from such contractors' sales factor under market-based sourcing. Sales of a national defense contractor other than sales of tangible personal property that are attributable to a federal defense acquisition contract for a sale other than a sale of tangible personal property will be excluded if (a) a greater proportion of the income producing activity is performed outside Virginia, based on costs of performance; (b) the laws of another state require that the sale be included in the numerator of the fraction used in apportioning the contractor's income to that state for income tax purposes; and (c) the laws of such other state require that the sale be included in such numerator only if the greater proportion of the income-producing activity is performed in that state, based on costs of performance.

With the exception of the elimination of the employment and wage level requirements placed on manufacturing companies electing single sales factor apportionment that becomes effectives for taxable years beginning on or after July 1, 2016, all other provisions in the bill will become effective only if the bill's provisions are not estimated by the Department of Taxation to reduce the official forecasted general fund revenues by more than $50 million for any fiscal year. The bill requires the Department to prepare a fiscal impact statement on general fund revenues from implementation of the bill. The fiscal impact statement is required to be provided to the Governor and the Chairmen of the House Committee on Appropriations, House Committee on Finance, and Senate Committee on Finance by December 1, 2016. To facilitate the Department's preparation of the fiscal impact statement, every corporation having income from business activity that is taxable both within and without Virginia and that had Virginia taxable income before apportionment of at least $50 million for taxable year 2014 will be required to recalculate its 2014 sales factor using market-based sourcing. The bill requires that the recalculated sales factor be submitted to the Department by July 1, 2016, and imposes a $5,000 penalty for the failure to do so.

The bill requires the Tax Commissioner by September 1 of each year beginning in 2018 to make a written certification to the Governor and the General Assembly reporting any net additional revenues attributable to the bill's provisions, if any, that were received in the state treasury for the immediately prior fiscal year. The next regular session of the General Assembly would be required to provide an amount of tax relief that at least equal to the amount certified by the Tax Commissioner.

01/26/16 House: Impact statement from TAX (HB966)
02/09/16 House: Assigned Finance sub: Subcommittee #1
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 969 Virginia Retail Sales and Use Tax Act; conforms the Commonwealth's sales and use tax laws.

Chief patron: Davis

Summary as introduced:
Virginia Retail Sales and Use Tax Act. Conforms the Commonwealth's sales and use tax laws to the provisions of the Streamlined Sales and Use Tax Agreement. The bill has a delayed effective date of July 1, 2017.

02/04/16 House: Impact statement from TAX (HB969)
02/09/16 House: Assigned Finance sub: Subcommittee #2
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 1095 Income tax, state; reduces top marginal individual tax rate.

Chief patron: Cline

Summary as introduced:
Individual income tax rate reduction. Reduces the top marginal individual income tax rate from 5.75 percent on income in excess of $17,000 to five percent on income in excess of $5,000 beginning with taxable year 2017.

02/01/16 House: Impact statement from TAX (HB1095)
02/09/16 House: Assigned Finance sub: Subcommittee #1
02/10/16 House: Subcommittee recommends continuing to 2017
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 1210 Gun safes; establishes an exemption from retail sales tax.

Chief patron: Filler-Corn

Summary as introduced:
Sales tax exemption; gun safes. Establishes an exemption from retail sales tax for the purchase of a gun safe with a selling price of $1,000 or less. The bill defines a gun safe as a safe or vault that is (i) commercially available, (ii) secured with a digital or dial combination locking mechanism or biometric locking mechanism, and (iii) designed for the storage of a firearm or for ammunition for use in a firearm. Under the bill a gun safe does not include a glass-faced cabinet.

01/29/16 House: Impact statement from TAX (HB1210)
02/09/16 House: Assigned Finance sub: Subcommittee #2
02/10/16 House: Subcommittee recommends reporting (7-Y 3-N)
02/15/16 House: Continued to 2017 in Finance
12/01/16 House: Left in Finance

HB 1415 Transient occupancy tax; Goochland, Powhatan, and Warren Counties authorized to impose.

Chief patron: Ware

Summary as passed House:
Transient occupancy tax; Goochland, Powhatan, and Warren Counties. Adds the Counties of Goochland, Powhatan, and Warren to the list of counties authorized to impose a transient occupancy tax at a rate not to exceed five percent, provided that any excess over two percent is designated and spent solely for tourism purposes. Under current law, all counties are authorized to impose such tax at a rate not to exceed two percent, and specified counties may impose the tax at a rate not to exceed five percent.

02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/15/17 House: Impact statement from TAX (HB1415ER)
02/17/17 Governor: Approved by Governor-Chapter 23 (effective 7/1/17)

HB 1439 Income tax, individual and corporate; small business job creation tax credit.

Chief patron: Head

Summary as introduced:
Income tax; small business job creation tax credit. Provides a personal and corporate income tax credit in the amount of $1,500 for each job, as defined in the bill, created by a small business, for taxable years beginning on or after January 1, 2017, but before January 1, 2022.

11/23/16 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB1439)
01/27/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1455 Real property tax; partial exemption for certain commercial and industrial structures.

Chief patron: Ware

Summary as passed House:

Real property tax; partial exemption for certain commercial and industrial structures. Reduces from 20 years to 15 years the minimum age of a structure in a technology zone that is rehabilitated for commercial use that qualifies the rehabilitated structure for a partial exemption from real property taxes. Under current law, a 15-year age minimum applies only to structures located in an enterprise zone designated by the Commonwealth, and a 20-year age minimum applies in all other situations. The bill contains technical amendments.

02/13/17 House: Signed by Speaker
02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/17/17 Governor: Approved by Governor-Chapter 24 (effective 7/1/17)

HB 1470 Land preservation tax credits; limitations.

Chief patron: Ware

Summary as introduced:
Land preservation tax credits; limitations. Imposes a $2 million limit on the amount of credits that may be claimed for each land conveyance and a $20,000 limit on the annual amount of credits that may be claimed by each taxpayer. The bill establishes a $50,000 cap on the annual amount of credits that may be claimed for a fee simple donation of land to the Commonwealth. The bill provides that the maximum annual amount of credits that may be issued to all taxpayers shall not exceed $50 million. The bill increases the fee imposed upon any transfer arising from the sale of land preservation tax credits by any taxpayer from two to 2.5 percent of the value of the donated interest.

12/09/16 House: Referred to Committee on Finance
01/11/17 House: Assigned Finance sub: Subcommittee #2
01/17/17 House: Impact statement from TAX (HB1470)
01/18/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1476 Real property tax; special assessment for land preservation.

Chief patron: Orrock

Summary as introduced:

Real property tax; special assessment for land preservation. Prohibits any locality from requiring any taxpayer who is the lessor of real property to produce the lease for the purpose of determining whether the property is eligible for special assessment for land preservation.

02/13/17 House: Signed by Speaker
02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/17/17 Governor: Approved by Governor-Chapter 25 (effective 7/1/17)

HB 1478 Recordation tax; exemption.

Chief patron: Orrock

Summary as introduced:

Recordation tax; exemption. Exempts from recordation tax deeds of trust given by utility consumer services cooperatives. This bill is identical to SB 875.

02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/14/17 House: Impact statement from TAX (HB1478ER)
02/21/17 Governor: Approved by Governor-Chapter 103 (effective 7/1/17)

HB 1488 Collection of delinquent local taxes; period of delinquency.

Chief patron: Albo

Summary as introduced:
Collection of delinquent local taxes; period of delinquency. Reduces from six months to three months the minimum period of time that a tax has been delinquent before a locality may refer the delinquency to an attorney, collection agency, or the sheriff for collection.

12/13/16 House: Referred to Committee on Finance
01/11/17 House: Assigned Finance sub: Subcommittee #1
01/14/17 House: Impact statement from TAX (HB1488)
01/25/17 House: Subcommittee recommends striking from docket
01/30/17 House: Stricken from docket by Finance

HB 1489 Recordation tax exemption; certain limited liability companies and limited or general partnerships

Chief patron: Miyares

Summary as introduced:
Recordation tax exemption; certain limited liability companies and limited or general partnerships. Provides a recordation tax exemption for deeds transferring property (i) to a subsidiary limited liability company or partnership from its parent limited liability company or partnership, (ii) from a subsidiary limited liability company or partnership to a parent limited liability company or partnership, (iii) to a limited liability company or partnership from a commonly owned limited liability company or partnership, or (iv) to a limited liability company or limited or general partnership from a commonly owned limited liability company or limited or general partnership, if the transaction qualifies for nonrecognition of gain or loss under the Internal Revenue Code.

12/14/16 House: Referred to Committee on Finance
01/11/17 House: Assigned Finance sub: Subcommittee #1
01/22/17 House: Impact statement from TAX (HB1489)
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1499 Apportionment of income; corporate income tax.

Chief patron: Davis

Summary as introduced:
Apportionment of income; corporate income tax. Makes several changes to the current method used by multistate corporations to apportion income to Virginia for purposes of the corporate income tax, including (i) establishing sales as the sole factor to be used in apportioning income, with such single sales factor apportionment phased in and first effective beginning with taxable year 2020; (ii) adopting market-based sourcing as the approach for sourcing sales of services and nontangible personal property to Virginia; and (iii) eliminating the requirements placed on manufacturing companies electing single sales factor apportionment to maintain certain employment and wage levels.

In general, current law requires multistate corporations to apportion taxable income to Virginia using a double-weighted sales factor formula, which consists of a sales factor that is double-weighted, a property factor, and a payroll factor to apportion the income. Under single sales factor apportionment, only the sales factor will be used by a multistate corporation to apportion taxable income to Virginia. Under the bill, most multistate corporations will be required to use single sales factor apportionment beginning with taxable year 2020, with manufacturing companies being one exception as discussed below.

Currently, manufacturing companies are allowed to elect single sales factor apportionment in lieu of double-weighted sales factor apportionment. However, manufacturing companies electing single sales factor apportionment must meet certain employment and wage levels for the first three taxable years in which single sales factor apportionment is used. A monetary penalty is imposed upon any manufacturing company that has elected to apportion income using a single sales factor but that fails to meet the employment and wage level requirements. Under the bill, manufacturing companies may adopt single sales factor apportionment or continue to use double-weighted sales factor apportionment. The bill provides that a manufacturing company that adopts singles sales factor apportionment in a taxable year beginning on or after July 1, 2017, will not be subject to any monetary penalty but may not revoke the election to use single sales factor apportionment.

The bill implements market-based sourcing for attributing sales to Virginia other than sales of tangible personal property beginning with taxable year 2018. The bill provides that sales made by certain communications services or Internet access services providers, other than sales of tangible personal property, that are attributable to Virginia under market-based sourcing will be multiplied by a factor of 0.5 for purposes of computing such companies' sales factors. The multiplication factor of 0.5 will be applied to such sales if the provider, or an affiliated group that includes a communications services or Internet access services provider, during the taxable year expended at least $100 million relating to communications services or Internet access services in the form of tangible personal property placed in service in Virginia or salaries and wages paid for its employees in Virginia. In addition, the bill provides that certain sales of national defense contractors will be excluded from such contractors' sales factor under market-based sourcing. Sales of a national defense contractor other than sales of tangible personal property that are attributable to a federal defense acquisition contract for a sale other than a sale of tangible personal property will be excluded if (a) a greater proportion of the income producing activity is performed outside Virginia, based on costs of performance; (b) the laws of another state require that the sale be included in the numerator of the fraction used in apportioning the contractor's income to that state for income tax purposes; and (c) the laws of such other state require that the sale be included in such numerator only if the greater proportion of the income-producing activity is performed in that state, based on costs of performance.

With the exception of the elimination of the employment and wage level requirements placed on manufacturing companies electing single sales factor apportionment that becomes effectives for taxable years beginning on or after July 1, 2017, all other provisions in the bill will become effective only if the bill's provisions are not estimated by the Department of Taxation to reduce the official forecasted general fund revenues by more than $50 million for any fiscal year. The bill requires the Department to prepare a fiscal impact statement on general fund revenues from implementation of the bill. The fiscal impact statement is required to be provided to the Governor and the Chairmen of the House Committee on Appropriations, House Committee on Finance, and Senate Committee on Finance by December 1, 2017. To facilitate the Department's preparation of the fiscal impact statement, every corporation having income from business activity that is taxable both within and without Virginia and that had Virginia taxable income before apportionment of at least $50 million for taxable year 2015 will be required to recalculate its 2015 sales factor using market-based sourcing. The bill requires that the recalculated sales factor be submitted to the Department by July 1, 2017, and imposes a $5,000 penalty for the failure to do so.

The bill requires the Tax Commissioner by September 1 of each year beginning in 2019 to make a written certification to the Governor and the General Assembly reporting any net additional revenues attributable to the bill's provisions, if any, that were received in the state treasury for the immediately prior fiscal year. The next regular session of the General Assembly would be required to provide an amount of tax relief that at least equal to the amount certified by the Tax Commissioner.

12/17/16 House: Referred to Committee on Finance
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/17/17 House: Impact statement from TAX (HB1499)
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1501 Virginia Retail Sales and Use Tax Act.

Chief patron: Davis

Summary as introduced:
Virginia Retail Sales and Use Tax Act. Conforms the Commonwealth's sales and use tax laws to the provisions of the Streamlined Sales and Use Tax Agreement. The bill has a delayed effective date of July 1, 2018.

12/17/16 House: Referred to Committee on Finance
01/20/17 House: Assigned Finance sub: Subcommittee #1
01/23/17 House: Impact statement from TAX (HB1501)
02/01/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1502 Communications sales and use tax; sales price.

Chief patron: Davis

Summary as introduced:
Communications sales and use tax; sales price. Provides that the sales price for the communications sales and use tax shall be reduced by any separately identified universal-service fund fees.

12/17/16 House: Prefiled and ordered printed; offered 01/11/17 17100252D
12/17/16 House: Referred to Committee on Finance
01/14/17 House: Impact statement from TAX (HB1502)
01/19/17 House: Assigned Finance sub: Subcommittee #3
02/07/17 House: Left in Finance

HB 1503 Membership in Multistate Tax Commission.

Chief patron: Davis

Summary as introduced:
Membership in Multistate Tax Commission. Requires the Tax Commissioner to take such steps as are necessary for Virginia to become an associate member of the Multistate Tax Commission and to participate in Multistate Tax Commission discussions and meetings concerning model tax legislation and uniform tax policies. The Commission was formed in 1967 and charged under the Multistate Tax Compact with, among other things, facilitating the proper determination of state and local tax liability of multistate taxpayers, promoting uniformity or compatibility in significant components of tax systems, facilitating taxpayer convenience and compliance in the filing of tax returns, and avoiding duplicative taxation.

12/17/16 House: Referred to Committee on Finance
01/15/17 House: Impact statement from TAX (HB1503)
01/20/17 House: Assigned Finance sub: Subcommittee #1
02/01/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1518 Sales and use tax; automotive repair supplies.

Chief patron: Knight

Summary as introduced:
Sales and use tax; automotive repair supplies. Requires that sales and use tax be collected on the separately stated charges of supplies used during the repair of automobiles, whether or not title or possession of the supplies passes to the customer. Under current law, the tax is paid on such supplies at the time the supplies are purchased by the automobile repairer.

02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/17/17 House: Fiscal impact review from JLARC (HB1518)
02/21/17 Governor: Approved by Governor-Chapter 104 (effective 7/1/17)

HB 1521 Commonwealth's tax code; conformity with federal law; emergency.

Chief patron: Ware

Summary as introduced:

Commonwealth's tax code; conformity with federal law; emergency. Advances conformity with the federal tax code to December 31, 2016. The bill contains an emergency clause. This bill is identical to SB 977.

EMERGENCY

01/31/17 House: Impact statement from TAX (HB1521ER)
01/31/17 House: Enrolled Bill communicated to Governor on 1/31/17
01/31/17 Governor: Governor's Action Deadline Midnight, February 7, 2017
02/03/17 Governor: Approved by Governor-Chapter 1 (effective 2/3/17)
02/03/17 Governor: Acts of Assembly Chapter text (CHAP0001)

HB 1543 Sales and use tax exemption; audiovisual productions and equipment.

Chief patron: Robinson

Summary as introduced:
Sales and use tax exemption; audiovisual productions and equipment. Extends the sunset date from July 1, 2019, to July 1, 2022, for the sales and use tax exemption on the transfer of certain audio or visual productions and equipment used in making such productions.

02/20/17 House: Enrolled
02/20/17 House: Bill text as passed House and Senate (HB1543ER)
02/21/17 House: Impact statement from TAX (HB1543ER)
02/21/17 House: Enrolled Bill communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

HB 1581 Made in Appalachia Initiative; refundable tax credits.

Chief patron: Campbell

Summary as introduced:
Made in Appalachia tax credits. Establishes beginning in taxable year 2017 refundable tax credits for certain investments in the localities of the Appalachian region. The bill defines the "Appalachian region" to include the localities of the Cumberland Plateau, LENOWISCO, and Mount Rogers planning districts. Any person may claim a credit in the amount of (i) 10 percent of any capital investment in the Appalachian region, (ii) $6,000 per full-time job created in the Appalachian region that pays at or above the locality's median wage, and (iii) the sales tax paid by the person in purchasing materials directly used in the manufacture of products in the Appalachian region.

The bill authorizes the Department of Taxation to issue up to $40 million in credits per taxable year. Any person who earns credits would be allowed to transfer unused credits to another taxpayer; however, such transfer would be subject to a fee of one percent of the dollar amount of the credits.

01/02/17 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB1581)
01/20/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1593 Sales and use tax; personal hygiene products.

Chief patron: Boysko

Summary as introduced:
Sales and use tax; personal hygiene products; "the dignity act." Exempts from sales and use tax toilet paper, adult diapers, and the following feminine hygiene products: sanitary napkins, tampons, sanitary towels, menstrual cups,and sanitary pads.

01/02/17 House: Referred to Committee on Finance
01/15/17 House: Impact statement from TAX (HB1593)
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/20/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1632 Renewable energy property; tax credit for property placed in service.

Chief patron: Sullivan

Summary as introduced:
Renewable energy property tax credit. Establishes beginning in taxable year 2017 a tax credit for renewable energy property placed in service. The bill defines renewable energy property as certain biomass equipment that uses renewable biomass resources, combined heat and power systems using waste heat to produce electricity or thermal or mechanical energy, certain geothermal equipment, hydroelectric generators located at existing dams or in free-flowing waterways, solar energy equipment, and wind equipment that is required to capture and convert wind energy into electricity or mechanical power.

The credit would equal 35 percent of the installed cost of the renewable energy property. However, the aggregate amount of credit allowed to each person for placing into service renewable energy property during the taxable year would not exceed the lesser of (i) 50 percent of the amount of the state corporate income tax, license tax on certain public utility companies, or license tax on insurance companies imposed upon the person for the year or (ii) $15,000. Only the ultimate consumer or user of the renewable energy property would be allowed to claim the credit.

The credit would be required to be claimed in five equal annual installments beginning with the taxable year in which the property was placed in service. The credit would expire and no further credit could be claimed if the renewable energy property was disposed of, taken out of service, or moved out of the Commonwealth during any of the installment years.

The Department of Taxation would issue the tax credits. The Department would be authorized to issue $5 million in tax credits each fiscal year. Any unused credit could be carried forward for five taxable years. The credit would sunset in 2022.

01/04/17 House: Referred to Committee on Finance
01/20/17 House: Assigned Finance sub: Subcommittee #2
01/21/17 House: Impact statement from TAX (HB1632)
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1635 Historic rehabilitation; limits amount of tax credits that may be claimed by each taxpayer.

Chief patron: Sullivan

Summary as introduced:
Historic rehabilitation tax credit. Limits the amount of historic rehabilitation tax credits that may be claimed by each taxpayer to $5 million per year, including any amounts carried over from prior taxable years. The limit is in effect for taxable years beginning on and after January 1, 2017.

01/04/17 House: Referred to Committee on Finance
01/14/17 House: Impact statement from TAX (HB1635)
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/18/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1665 Motion picture production tax credit.

Chief patron: Robinson

Summary as introduced:

Motion picture production tax credit. Extends the sunset date of the motion picture production tax credit from January 1, 2019, to January 1, 2022. This bill is identical to SB 982.

02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/17/17 House: Impact statement from TAX (HB1665ER)
02/21/17 Governor: Approved by Governor-Chapter 108 (effective 7/1/17)

HB 1668 Retail Sales and Use Tax; exempts legal tender coins.

Chief patron: Stolle

Summary as passed House:

Sales and use tax exemption; legal tender coins. Exempts legal tender coins whose total transaction sales price exceeds $1,000 from sales and use tax and extends from January 1, 2019, to June 30, 2022, the same exemption for gold, silver, or platinum bullion. The bill has a delayed effective date of January 1, 2018. The provisions of the bill expire on June 30, 2022. This bill is identical to SB 934.

02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/14/17 House: Impact statement from TAX (HB1668ER)
02/20/17 Governor: Approved by Governor-Chapter 48 (effective 1/1/18)

HB 1669 Gas severance tax.

Chief patron: Morefield

Summary as introduced:
Gas severance tax. Extends the sunset date from January 1, 2018, to January 1, 2020, for the local gas severance tax that is dedicated to (i) the local Coal and Gas Road Improvement Fund, (ii) the Virginia Coalfield Economic Development Fund, and (iii) water, sewer, and natural gas systems and lines.

01/05/17 House: Referred to Committee on Finance
01/14/17 House: Impact statement from TAX (HB1669)
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/18/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1672 Coalfield region public education tax credit.

Chief patron: Morefield

Summary as introduced:
Coalfield region public education tax credit. Establishes a tax credit for taxable years 2017 through 2021 for donations to public schools in the coalfield region. The credit would equal 65 percent of the value of the donation. The Department of Taxation would be authorized to issue $5 million in tax credits each fiscal year.

01/05/17 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB1672)
01/27/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1676 Individual income tax; subtraction for National Guard wages.

Chief patron: Collins

Summary as introduced:
Individual income tax; subtraction for National Guard wages. Provides that a Virginia resident shall be eligible for a subtraction for wages earned in service in the National Guard of another state if the resident's out-of-state service is due to the taxpayer's military occupational specialty requirements.

01/06/17 House: Referred to Committee on Finance
01/17/17 House: Impact statement from TAX (HB1676)
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1681 Transient occupancy tax; state parks.

Chief patron: Bloxom

Summary as introduced:
Transient occupancy tax; state parks. Permits localities to impose transient occupancy taxes on transient room rentals and travel campgrounds in state parks.

02/09/17 Senate: Passed by for the day
02/10/17 Senate: Read third time
02/10/17 Senate: Motion to recommit to committee agreed to
02/10/17 Senate: Recommitted to Finance
02/21/17 Senate: Left in Finance

HB 1707 Tax credits, certain; elimination of state-level charitable contribution deductions.

Chief patron: Filler-Corn

Summary as introduced:
Certain tax credits; elimination of state-level charitable contribution deductions when such credits are claimed. Prohibits a taxpayer from claiming a charitable contribution deduction in calculating Virginia taxable income if a neighborhood assistance tax credit or an education improvement scholarships tax credit is claimed for the same donation. The prohibition is effective for taxable years beginning on and after January 1, 2017.

01/06/17 House: Referred to Committee on Finance
01/15/17 House: Impact statement from TAX (HB1707)
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/18/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1714 Corporate income tax; rate of taxation.

Chief patron: Minchew

Summary as introduced:
Corporate income tax; rate of taxation. Lowers the corporate income tax rate from six percent to five percent for taxable years beginning on and after January 1, 2018.

01/07/17 House: Prefiled and ordered printed; offered 01/11/17 17102491D
01/07/17 House: Referred to Committee on Finance
01/15/17 House: Impact statement from TAX (HB1714)
01/17/17 House: Assigned Finance sub: Subcommittee #2
02/07/17 House: Left in Finance

HB 1717 Individual income tax; subtraction for interest and dividends from Virginia-based corporations.

Chief patron: Minchew

Summary as introduced:
Individual income tax; subtraction for interest and dividends from Virginia-based corporations. Allows residents of Virginia to subtract from their Virginia taxable income any interest or dividends received from a corporation with its principal place of business in Virginia. The subtraction would be available for taxable years beginning January 1, 2017.

01/07/17 House: Referred to Committee on Finance
01/15/17 House: Impact statement from TAX (HB1717)
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/18/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1738 Retail sales and use tax; aviation parts, engines, and supplies.

Chief patron: Anderson

Summary as passed House:

Retail sales and use tax; aviation parts, engines, and supplies. Creates an exemption from the retail sales and use tax for parts and supplies used for maintaining, repairing, or reconditioning aircraft, including unmanned aerial systems. The exemption does not apply to tools and other items that are not attached to or become a part of the aircraft. The exemption will be effective from July 1, 2018, to June 30, 2022.

02/20/17 House: Enrolled
02/20/17 House: Bill text as passed House and Senate (HB1738ER)
02/21/17 House: Enrolled Bill communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/22/17 House: Impact statement from TAX (HB1738ER)

HB 1772 Low-income taxpayer tax credit.

Chief patron: Plum

Summary as introduced:
Low-income taxpayer tax credit. Allows low-income individuals and married persons to claim a refundable income tax credit equal to 20 percent of the federal earned income tax credit claimed by the individual or married persons for the year in lieu of the current options available for claiming the credit. Under current law, low-income individuals and married persons may claim (i) a nonrefundable income tax credit equal to $300 for each of the individual, his spouse, and any dependents or (ii) a nonrefundable income tax credit equal to 20 percent of the federal earned income tax credit claimed by the individual or married persons for the year. The provisions of the bill apply to taxable years beginning on and after January 1, 2017.

01/09/17 House: Referred to Committee on Finance
01/19/17 House: Impact statement from TAX (HB1772)
01/20/17 House: Assigned Finance sub: Subcommittee #2
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1806 Income tax subtractions and credits for investments in technology businesses.

Chief patron: Bell, John J.

Summary as introduced:

Income tax subtractions and credits for investments in technology businesses. Modifies the qualified equity and subordinated debt investments tax credit by (i) increasing the maximum amount of credits that can be issued each year from $5 million to $7.5 million, (ii) allocating the $2.5 million annual increase in credits to cybersecurity businesses, and (iii) allowing credit for investments in technology businesses with no more than 50 full-time employees.

Currently, credit is allowed for an equity or debt investment in a technology business if the business (a) has annual gross revenues of no more than $3 million in its most recent fiscal year, (b) has its principal office or facility in the Commonwealth, (c) is engaged in business primarily in or does substantially all of its production in the Commonwealth, and (d) has not obtained during its existence more than $3 million in aggregate gross cash proceeds from the issuance of its equity or debt investments. Under the bill, in lieu of having no more than $3 million in annual gross revenues for its most recent fiscal year, a business can be a qualifying business if it has no more than 50 full-time employees for such year.

The bill also modifies an income tax subtraction that is similar to the tax credit by allowing the subtraction for an investment in a technology business if the business had no more than 50 full-time employees in its most recent fiscal year.

The bill is effective beginning with taxable year 2017.

01/09/17 House: Referred to Committee on Finance
01/15/17 House: Impact statement from TAX (HB1806)
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/25/17 House: Subcommittee failed to recommend reporting (4-Y 6-N)
02/07/17 House: Left in Finance

HB 1814 Worker retraining and telework expenses; extends sunset date for tax credits.

Chief patron: Ware

Summary as passed:

Tax credits for worker retraining and telework expenses. Extends from taxable years prior to January 1, 2018, to taxable years prior to January 1, 2022, the sunset date for the worker retraining tax credit and transfers the certification of eligible worker retraining programs from the Department of Small Business and Supplier Diversity to the Virginia Economic Development Partnership Authority. The bill also extends from taxable years prior to January 1, 2017, to taxable years prior to January 1, 2022, the sunset date for the telework expenses tax credit. This bill is identical to SB 1576.

02/16/17 House: Signed by Speaker
02/17/17 Senate: Signed by President
02/17/17 House: Enrolled Bill communicated to Governor on 2/17/17
02/17/17 Governor: Governor's Action Deadline Midnight, February 24, 2017
02/20/17 House: Impact statement from TAX (HB1814ER)

HB 1884 Real property tax; exemption for certain surviving spouses.

Chief patron: Hugo

Summary as passed House:

Real property tax exemption; certain surviving spouses. Authorizes localities to exempt the primary residence of the surviving spouse of a law-enforcement officer, firefighter, search and rescue personnel, and emergency medical services personnel who is killed in the line of duty. The exemption does not apply to that portion of the value of the residence in excess of the average assessed value of dwellings in the locality. The bill is pursuant to Article X, Section 6-B of the Constitution of Virginia, which was adopted by the voters in 2016.

02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/16/17 House: Impact statement from TAX (HB1884ER)
02/21/17 House: Governor's recommendation received by House

HB 1889 License taxes, local; exemption for certain defense production businesses.

Chief patron: Hugo

Summary as passed:

Local license taxes; exemption for certain defense production businesses. Clarifies that the exemption for wholesale manufacturers from local license taxes includes a manufacturer that is also a defense production business selling manufacturing, rebuilding, repair, and maintenance services at the place of manufacture to the United States or for which consent of the United States is required. This bill is identical to SB 1274.

02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/16/17 House: Impact statement from TAX (HB1889ER)
02/21/17 Governor: Approved by Governor-Chapter 111 (effective 7/1/17)

HB 1890 Sales and use tax; collection of taxes from consuming contractors.

Chief patron: Hugo

Summary as introduced:

Collection of sales and use tax. Removes the exception that persons selling certain products, such as window shades, kitchen equipment, and countertops, are deemed to be retailers and not consuming contractors for purposes of collecting sales and use tax, even if they intend to install such items for contractors. Generally, tangible personal property incorporated into real property is deemed to have been purchased for consumption by the contractor. This bill is identical to SB 1308.

02/20/17 House: Enrolled
02/20/17 House: Bill text as passed House and Senate (HB1890ER)
02/21/17 House: Impact statement from TAX (HB1890ER)
02/21/17 House: Enrolled Bill communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

HB 1891 Geothermal heat pump property expenditure; establishes a tax credit for taxable years 2017-2021.

Chief patron: Hugo

Summary as introduced:
Geothermal heat pump property expenditure credit. Establishes a tax credit, for taxable years 2017 through 2021, for geothermal heat pump property expenditures at a residence in Virginia. The bill defines "geothermal heat pump property expenditure" as any expenditure for equipment that uses the ground or groundwater as a thermal energy source to heat a residence or as a thermal energy sink to cool a residence.

The credit would equal 25 percent of purchase or installation expenditures. An eligible individual taxpayer could claim a maximum of 50 percent of his tax liability or $2,500, whichever is less, and carry over unused credit for up to 10 years. In addition, a taxpayer could claim only 25 percent of the total cost of geothermal heat pump property at a single residence, up to a maximum of $10,000.

The bill authorizes the Department of Taxation to issue up to $10 million in credits each fiscal year.

01/10/17 House: Referred to Committee on Finance
01/22/17 House: Impact statement from TAX (HB1891)
01/24/17 House: Assigned Finance sub: Subcommittee #1
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1917 Coalfield region energy production; establishes a tax credit for taxable years 2017 through 2021.

Chief patron: Morefield

Summary as introduced:
Coalfield region energy production tax credit. Establishes a tax credit for taxable years 2017 through 2021 for a capital investment in an energy production facility in the coalfield region. The credit would equal 25 percent of (i) any expenditure for the construction or improvement of an energy production facility or (ii) the cost of machinery, tools, and equipment used at an energy production facility and directly related to energy production. The Department of Taxation would be authorized to issue $7.3 million in tax credits each fiscal year.

01/10/17 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB1917)
01/27/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1925 Local cigarette tax.

Chief patron: Campbell

Summary as introduced:
Local cigarette tax. Authorizes all counties to impose a cigarette tax. Under current law, only the Counties of Fairfax and Arlington are authorized to impose a cigarette tax.

01/10/17 House: Referred to Committee on Finance
01/20/17 House: Assigned Finance sub: Subcommittee #3
01/22/17 House: Impact statement from TAX (HB1925)
01/27/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 1950 Cigarette tax, local; refund of returned tax stamps.

Chief patron: Peace

Summary as introduced:
Local cigarette tax. Requires localities that impose a local cigarette tax and require stamps as evidence of payment to provide a refund for any stamps that are returned to the locality.

02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/16/17 House: Impact statement from TAX (HB1950ER)
02/21/17 Governor: Approved by Governor-Chapter 113 (effective 7/1/17)

HB 1959 Student internships; tax credit to an employer for each intern hired.

Chief patron: Yancey

Summary as introduced:
Worker retraining tax credit; student internships; College Savings Plan contributions. Provides a $1,000 tax credit to an employer for each intern hired as part of a qualified internship program. The bill defines "qualified internship program" as an internship in which the student works at least 20 hours per week for at least 10 weeks; the intern receives at least minimum wage; the intern receives training that enhances job-related skills; and such training is in the field of electrical work, engineering, manufacturing, or mechanical work. An employer would be required to obtain approval of its internship program from a school division or community college of the Commonwealth and the Department of Small Business and Supplier Diversity.

The bill also provides a credit of 30 percent of the value of any matching contribution made by the employer, up to $1,000, for a student intern's contribution to his Virginia College Savings Plan.

01/10/17 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB1959)
01/27/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2027 Adoption fees and expenses, certain; creates income tax deduction and credit.

Chief patron: Freitas

Summary as introduced:
Certain adoption fees and expenses; income tax deduction and credit. Creates, for taxable years beginning on and after January 1, 2017, a refundable income tax credit for mandatory fees paid to the Commonwealth related to the adoption of a child within the Virginia foster care system and a deduction for any other costs or fees associated with the adoption of such child.

01/10/17 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB2027)
01/20/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2038 Recordation tax; refinancing deeds of trust.

Chief patron: Murphy

Summary as introduced:
Recordation tax; refinancing deeds of trust. Exempts from recordation tax deeds of trust or mortgages that refinance an existing deed of trust or mortgage on which the recordation tax was paid within the last two years.

01/10/17 House: Referred to Committee on Finance
01/20/17 House: Assigned Finance sub: Subcommittee #1
01/22/17 House: Impact statement from TAX (HB2038)
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2058 Sales and use tax; nexus for out-of-state businesses.

Chief patron: Watts

Summary as introduced:

Sales and use tax; nexus for out-of-state businesses. Provides that storage of inventory in the Commonwealth is sufficient nexus to require out-of-state businesses to collect sales and use tax on sales to customers in the Commonwealth. This bill is identical to SB 962.

02/14/17 House: Signed by Speaker
02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/20/17 Governor: Approved by Governor-Chapter 51 (effective 7/1/17)

HB 2074 Income tax, state and corporate; subtraction for Virginia venture capital account investment.

Chief patron: Rush

Summary as passed House:

Income tax; subtraction for Virginia venture capital account investment. Establishes for taxable years beginning January 1, 2018, an individual and corporate income tax subtraction for income derived from an investment in a Virginia venture capital account, defined in the bill as an investment fund that makes at least 50 percent of its investments in qualified portfolio companies and employs at least one investor with at least four years' experience in venture capital investment or substantially equivalent experience. The bill defines "qualified portfolio company" as a Virginia-headquartered company that has a primary purpose of production, sale, research, or development of a product or service and provides equity in exchange for the investment. An income tax subtraction would be available only for an investment made on or after January 1, 2018.

02/21/17 House: Placed on Calendar
02/21/17 House: Senate substitute rejected by House 17105512D-S1 (1-Y 96-N)
02/21/17 House: VOTE: REJECTED (1-Y 96-N)
02/22/17 Senate: Senate insisted on substitute (40-Y 0-N)
02/22/17 Senate: Senate requested conference committee

HB 2104 Machinery and tools tax; valuation, appeal of certain local taxes.

Chief patron: Byron

Summary as introduced:
Machinery and tools tax; valuation; appeal of certain local taxes. Permits the commissioner of the revenue to utilize any method that may reasonably be expected to determine actual fair market value of machinery and tools, in addition to specific methods required under current law. The bill also requires the commissioner of the revenue, upon request, to take into account the condition of the machinery and tools, all forms of depreciation, including obsolescence, and any other factor that is not adequately taken into account by the valuation method otherwise used. The bill requires the commissioner of the revenue to provide to taxpayers upon request a description of his valuation methods, any adjustments that have been made to reflect the taxpayer's appraisal or written concerns, and the factual and legal bases on which the commissioner relies for disagreeing with the taxpayer's qualified appraisal. The bill also gives the Tax Commissioner authority to issue advisory written opinions in specific cases to interpret the law related to valuations involving independent appraisals of manufacturers' machinery and tools that are presented by the taxpayer to the commissioner of the revenue. In appeals to the Tax Commissioner of the valuation of machinery and tools, the bill permits the taxpayer to value the property by allocating the total value of all machinery and tools at a facility among individual items of property according to the percentage of the original cost that each such item of property bears to the total original cost of all of the property. The bill also requires the Tax Commissioner to make certain determinations and findings related to the appeal.

In appeals of tangible personal property tax on airplanes, boats, campers, recreational vehicles, and trailers and on tangible business personal property, the bill requires the commissioner of the revenue to identify any statement of fact submitted by the taxpayer that the commissioner of the revenue believes to be incorrect.

01/31/17 House: Read first time
02/01/17 House: Motion to refer to committee agreed to
02/01/17 House: Referred to Committee on Appropriations
02/01/17 House: Impact statement from DHCD/CLG (HB2104)
02/08/17 House: Left in Appropriations

HB 2114 Motion picture production tax credit; digital interactive media production.

Chief patron: Keam

Summary as introduced:
Motion picture production tax credit; digital interactive media production. Provides that digital interactive media productions will no longer be eligible for motion picture film production tax credits beginning with taxable year 2018.

01/10/17 House: Referred to Committee on Finance
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/17/17 House: Impact statement from TAX (HB2114)
01/18/17 House: Subcommittee recommends striking from docket
01/23/17 House: Stricken from docket by Finance

HB 2150 Land preservation tax credit; per taxpayer limitation.

Chief patron: Aird

Summary as introduced:
Land preservation tax credit; per taxpayer limitation. Extends to taxable year 2017 the $20,000 limit on the amount that a taxpayer may claim per year under the land preservation tax credit. The bill retains the $50,000 limit for each subsequent taxable year.

01/11/17 House: Referred to Committee on Finance
01/14/17 House: Impact statement from TAX (HB2150)
01/18/17 House: Assigned Finance sub: Subcommittee #2
01/18/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2169 Gas severance tax.

Chief patron: Pillion

Summary as introduced:

Gas severance tax. Extends the sunset date from January 1, 2018, to January 1, 2020, for the local gas severance tax that is dedicated to (i) the local Coal and Gas Road Improvement Fund, (ii) the Virginia Coalfield Economic Development Fund, and (iii) water, sewer, and natural gas systems and lines. This bill is identical to SB 886.

02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/16/17 House: Impact statement from TAX (HB2169ER)
02/20/17 Governor: Approved by Governor-Chapter 52 (effective 7/1/17)

HB 2175 Income tax, state; subtraction for military veterans with a service-connected disability.

Chief patron: Miyares

Summary as introduced:
Income tax; subtraction for military veterans with a service-connected disability. Establishes for taxable years beginning January 1, 2017, an individual income tax subtraction, for purposes of computing Virginia adjusted gross income, for the military retirement income of veterans with a 100 percent service-connected disability. The bill provides that the subtraction is available only for taxpayers whose federal adjusted gross income does not exceed 250 percent of the federal poverty level for a four-person household.

01/11/17 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB2175)
01/27/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2189 Retail Sales and Use Tax; exemption for feminine hygiene products.

Chief patron: Boysko

Summary as introduced:
Sales and use tax exemption; feminine hygiene products. Adds feminine hygiene products to items of school supplies, clothing, and footwear that are exempt from sales and use tax each year during a three-day period that begins on the first Friday in August. The bill specifies that feminine hygiene products include sanitary napkins, tampons, sanitary towels, menstrual cups, and sanitary pads.

01/11/17 House: Referred to Committee on Finance
01/19/17 House: Assigned Finance sub: Subcommittee #3
01/19/17 House: Impact statement from TAX (HB2189)
01/20/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2193 Personal property tax; business property.

Chief patron: Rush

Summary as introduced:

Personal property tax; business property. Requires localities to permit taxpayers to provide an aggregate estimate of the total cost of all personal property used in a business that has an original cost of less than $500, in lieu of a specific, itemized list. Under current law, localities are permitted to allow taxpayers to provide such estimate of aggregate cost for property whose original cost is less than $250.

02/14/17 House: Signed by Speaker
02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/21/17 Governor: Approved by Governor-Chapter 116 (effective 7/1/17)

HB 2198 Coal tax; limits aggregate amount of credits that may be allocated or claimed for employment, etc.

Chief patron: Kilgore

Summary as passed House:

Coal tax credits. Reinstates the Virginia coal employment and production incentive tax credit. The credit, which expired on July 1, 2016, could be earned on and after January 1, 2017, but before January 1, 2022. The bill limits the aggregate amount of credits that may be allocated or claimed for the coal employment and production incentive tax credit in each fiscal year to $7.3 million. An electricity generator must file an application with the Department of Taxation each year to determine the amount of credits that it may claim or allocate, including credits earned in prior taxable years. If the total amount of credits earned in a taxable year exceeds $7.3 million, the Department of Taxation shall apportion the credits on a pro rata basis. The bill also extends the sunset date of the coalfield employment enhancement tax credit through taxable years beginning before January 1, 2022. This bill is identical to SB 1470.

02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/17/17 House: Impact statement from TAX (HB2198ER)
02/21/17 Governor: Vetoed by Governor

HB 2219 Real property tax; Stafford County allowed, by ordinance, to restrict deferral of taxes.

Chief patron: Dudenhefer

Summary as passed House:

Real property tax; deferral; Stafford County. Allows Stafford County, by ordinance, to restrict the deferral of real property taxes authorized under current law to a taxpayer's sole dwelling whose tax levy for 2016 exceeded the tax levy for 2015 by at least 25 percent  due to improvements made to adjacent property by Stafford County. The amount of the deferral shall not exceed 95 percent of such excess. This bill is identical to SB 1248.

02/20/17 House: Enrolled
02/20/17 House: Bill text as passed House and Senate (HB2219ER)
02/21/17 House: Enrolled Bill communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/22/17 House: Impact statement from TAX (HB2219ER)

HB 2226 Income tax, state; reduces top marginal individual tax rate.

Chief patron: Cline

Summary as introduced:
Individual income tax rate reduction. Reduces the top marginal individual income tax rate from 5.75 percent on income in excess of $17,000 to five percent on income in excess of $5,000 beginning with taxable year 2018.

01/11/17 House: Referred to Committee on Finance
01/17/17 House: Assigned Finance sub: Subcommittee #2
01/17/17 House: Impact statement from TAX (HB2226)
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2246 Virginia Tax Amnesty Program; established.

Chief patron: Jones

Summary as introduced:

Virginia Tax Amnesty Program. Establishes the Virginia Tax Amnesty Program to be administered by the Department of Taxation (the Department) during the 2017-2018 fiscal year for not less than 60 nor more than 75 days, as determined by the Tax Commissioner. The Program will be open to any taxpayer that is required but has failed to file a return or to pay any tax administered by the Department. All civil or criminal penalties assessed or assessable and one-half of the interest assessed or assessable, resulting from nonpayment, underpayment, nonreporting, or underreporting of tax liabilities, will be waived upon payment of the taxes and interest. For purposes of implementing the Program, the Department is exempt from the project management and procurement oversight of the Virginia Information Technologies Agency. This bill is identical to SB 1438.

02/15/17 Senate: Signed by President
02/15/17 House: Enrolled Bill communicated to Governor on 2/15/17
02/15/17 Governor: Governor's Action Deadline Midnight, February 22, 2017
02/17/17 House: Impact statement from TAX (HB2246ER)
02/20/17 Governor: Approved by Governor-Chapter 53 (effective 7/1/17)

HB 2377 Retail Sales and Use Tax; exemption of certain textbooks and other educational materials.

Chief patron: Freitas

Summary as introduced:
Sales and use tax exemption; certain textbooks and other educational materials. Extends the sunset date from July 1, 2017, to July 1, 2022, for the sales and use tax exemption for textbooks and other educational materials that are withdrawn from inventory at book-publishing distribution facilities for free distribution to professors and other individuals who have an educational focus.

02/13/17 Senate: Signed by President
02/14/17 House: Enrolled Bill communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/14/17 House: Impact statement from TAX (HB2377ER)
02/20/17 Governor: Approved by Governor-Chapter 54 (effective 7/1/17)

HB 2393 Income tax, state; tax credit for purchase of gun safe.

Chief patron: Cline

Summary as introduced:
Income tax credit; purchase of gun safe. Establishes an individual income tax credit beginning January 1, 2017, for the purchase of a gun safe. The credit would equal 50 percent of the purchase price paid for any gun safe with a selling price of $500 or less. The bill defines a gun safe as a safe or vault that is (i) commercially available, (ii) secured with a digital or dial combination locking mechanism or biometric locking mechanism, and (iii) designed for the storage of a firearm or ammunition for use in a firearm.

An individual may not claim more than $100 in tax credits for all taxable years. The Department would be authorized to issue up to $250,000 in tax credits each year. The credit would expire on January 1, 2022.

01/18/17 House: Referred to Committee on Finance
01/22/17 House: Impact statement from TAX (HB2393)
01/24/17 House: Assigned Finance sub: Subcommittee #3
01/27/17 House: Subcommittee recommends striking from docket
01/30/17 House: Stricken from docket by Finance

HB 2422 Insurance institution or agent; notice of financial information collection and disclosure practices.

Chief patron: Hugo

Summary as passed House:

Insurance institutions and agents; notice of financial information collection and disclosure practices. Creates an exemption from the requirement that insurance institutions and agents provide policyholders with an annual notice of financial information collection and disclosure practices in connection with insurance transactions. The exemption applies when the insurance institution or agent provides nonpublic personal information to nonaffiliated third parties only in accordance with § 38.2-613 and has not changed its policies and practices with regard to disclosing nonpublic financial information from the policies and practices that were disclosed in the most recent notice sent to the policyholder.

02/16/17 Senate: Passed Senate (40-Y 0-N)
02/20/17 House: Enrolled
02/20/17 House: Bill text as passed House and Senate (HB2422ER)
02/21/17 House: Enrolled Bill communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

HB 2455 Personal property tax, tangible; list of uncollected balances.

Chief patron: Hodges

Summary as introduced:
Tangible personal property tax; list of uncollected balances. Expands the uncollected personal property tax on vehicles for which the treasurer is required to compile a list, to include the personal property tax on trailers, semitrailers, watercraft, and manufactured homes.

02/20/17 House: Enrolled
02/20/17 House: Bill text as passed House and Senate (HB2455ER)
02/21/17 House: Enrolled Bill communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/22/17 House: Impact statement from TAX (HB2455ER)

HB 2460 Historic rehabilitation; limits amount of tax credits that may be claimed by each taxpayer.

Chief patron: Bloxom

Summary as introduced:
Historic rehabilitation tax credit. Limits the amount of historic rehabilitation tax credits that may be claimed by each taxpayer to $5 million per year, including any amounts carried over from prior taxable years. The limit is in effect for taxable years beginning on and after January 1, 2017.

02/15/17 House: House acceded to request
02/15/17 House: Conferees appointed by House
02/15/17 House: Delegates: Bloxom, Farrell, Sullivan
02/15/17 Senate: Conferees appointed by Senate
02/15/17 Senate: Senators: Howell, Hanger, Ruff

HB 2461 Neighborhood assistance tax credits; reduces amount of credit of value for certain donations.

Chief patron: Bloxom

Summary as introduced:
Neighborhood assistance tax credits. Reduces the amount of the tax credit from 65 percent of the value of donations to neighborhood organizations for taxable years 2012 through 2017 to (i) 60 percent of such donations for taxable year 2018, (ii) 55 percent of such donations for taxable year 2019, and (iii) 50 percent of such donations for taxable years 2020 and thereafter.

01/20/17 House: Referred to Committee on Finance
01/23/17 House: Impact statement from TAX (HB2461)
01/24/17 House: Assigned Finance sub: Subcommittee #2
01/25/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HB 2475 Real property tax; payments in lieu of taxes for exempt organizations.

Chief patron: LaRock

Summary as introduced:
Real property tax; payments in lieu of taxes for exempt organizations. Permits localities to enter into mutually agreeable terms with entities that are exempt from real property tax, for the payment of service charges.

01/20/17 House: Referred to Committee on Finance
01/23/17 House: Impact statement from TAX (HB2475)
01/24/17 House: Assigned Finance sub: Subcommittee #3
01/27/17 House: Subcommittee recommends laying on the table
02/07/17 House: Left in Finance

HJ 562 Const. amend. (first resolution); real property tax; exemption for surviving spouse of disabled vet.

Chief patron: Miyares

Summary as passed House:

Constitutional amendment (first resolution); real property tax; exemption for surviving spouse of a disabled veteran. Provides that the real property tax exemption for the principal residence of the surviving spouse of a disabled military veteran applies without any restriction on the spouse's moving to a different principal place of residence.

02/07/17 Senate: Referred to Committee on Privileges and Elections
02/14/17 Senate: Reported from Privileges and Elections (14-Y 0-N)
02/16/17 Senate: Reading waived (39-Y 0-N)
02/17/17 Senate: Read third time
02/17/17 Senate: Agreed to by Senate (39-Y 0-N)

HJ 577 Constitutional amendment (first resolution); real property tax; assessed value.

Chief patron: Cole

Summary as introduced:
Constitutional amendment (first resolution); real property tax; assessed value. Provides that the General Assembly may authorize any locality to reduce the assessed value of real property, until the property is sold or the owner dies, whose fair market value has increased significantly as a result of public improvements abutting the property.

01/03/17 House: Prefiled and ordered printed; offered 01/11/17 17102079D
01/03/17 House: Referred to Committee on Privileges and Elections
01/10/17 House: Assigned P & E sub: Constitutional
01/30/17 House: Subcommittee recommends laying on the table (4-Y 3-N)
02/08/17 House: Left in Privileges and Elections

HJ 619 Study; Tax Commissioner to study disincentives to upgrade machinery and tools; report.

Chief patron: Davis

Summary as introduced:
Study; Tax Commissioner to study disincentives to upgrade machinery and tools; report. Requests that the Tax Commissioner study disincentives in the Code of Virginia that discourage investment in upgrades to machinery and tools and propose modifications to the Code of Virginia that would remove such disincentives.

01/08/17 House: Prefiled and ordered printed; offered 01/11/17 17102955D
01/08/17 House: Referred to Committee on Rules
01/12/17 House: Assigned Rules sub: Studies
01/26/17 House: Tabled in Rules

HJ 634 Constitutional amendment (first resolution); authority of elected school boards to impose taxes.

Chief patron: Cole

Summary as introduced:
Constitutional amendment (first resolution); authority of elected school boards to impose taxes. Provides that the General Assembly may authorize any elected school board to impose real property taxes.

01/10/17 House: Prefiled and ordered printed; offered 01/11/17 17101131D
01/10/17 House: Referred to Committee on Privileges and Elections
01/11/17 House: Assigned P & E sub: Constitutional
01/30/17 House: Subcommittee recommends laying on the table (4-Y 3-N)
02/08/17 House: Left in Privileges and Elections

HJ 638 Study; Department of Taxation to study unitary combined reporting of corporate income; report.

Chief patron: Lopez

Summary as introduced:

Study; Department of Taxation to study unitary combined reporting of corporate income; report. Directs the Department of Taxation to research unitary combined reporting of corporate income and develop a recommendation regarding its implementation in the Commonwealth.

01/10/17 House: Prefiled and ordered printed; offered 01/11/17 17103626D
01/10/17 House: Referred to Committee on Rules
01/12/17 House: Assigned Rules sub: Studies
01/26/17 House: Tabled in Rules

HJ 697 Const. amend.(first resolution); real property tax; exemption surviving spouse of disabled veteran.

Chief patron: Byron

Summary as introduced:
Constitutional amendment (first resolution); real property tax; exemption for surviving spouse of a disabled veteran. Provides that the real property tax exemption for the principal residence of the surviving spouse of a disabled military veteran applies without any restriction on the spouse's moving to a different principal place of residence.

01/10/17 House: Prefiled and ordered printed; offered 01/11/17 17103348D
01/10/17 House: Referred to Committee on Privileges and Elections
01/12/17 House: Assigned P & E sub: Constitutional
01/30/17 House: Subcommittee recommends laying on the table (4-Y 3-N)
02/08/17 House: Left in Privileges and Elections

HJ 706 Constitutional amendment (first resolution); tangible personal property tax; exemption.

Chief patron: Rush

Summary as introduced:
Constitutional amendment (first resolution); tangible personal property tax; exemption. Provides that any locality may, by ordinance, exempt from taxation the first $5,000 of value of tangible personal property used in a business.

01/11/17 House: Prefiled and ordered printed; offered 01/11/17 17103513D
01/11/17 House: Referred to Committee on Privileges and Elections
01/12/17 House: Assigned P & E sub: Constitutional
01/30/17 House: Subcommittee recommends laying on the table (4-Y 3-N)
02/08/17 House: Left in Privileges and Elections

SB 200 Qualified equity and subordinated debt investments; raises cap on total amount of credits.

Chief patron: Howell

Summary as introduced:

Qualified equity and subordinated debt investments tax credit. Raises the cap on the total amount of credits that may be issued under the qualified equity and subordinated debt investment tax credit from $5 million to $9 million for calendar years beginning on and after January 1, 2016. The bill also raises the cap on the maximum amount of credits available to each taxpayer from $50,000 to $100,000 for taxable years beginning on and after January 1, 2016. This bill incorporates SB 749.

02/08/16 Senate: Impact statement from TAX (SB200)
02/09/16 Senate: Committee substitute printed to Web only 16105367D-S1
02/09/16 Senate: Continued to 2017 in Finance (15-Y 0-N)
02/09/16 Senate: Incorporates SB749
12/02/16 Senate: Left in Finance

SB 486 Land preservation tax credits; certain donations of land.

Chief patron: Hanger

Summary as introduced:
Land preservation tax credits; certain donations of land. Allows a land holder to donate a fee interest in land to a private, not-for-profit charitable corporation not established for conservation or preservation purposes and receive land preservation tax credits for the donation. The credits would not be allowed unless and until the charitable corporation protected the land in perpetuity with a conservation or open-space easement.

01/12/16 Senate: Prefiled and ordered printed; offered 01/13/16 16101564D
01/12/16 Senate: Referred to Committee on Finance
02/08/16 Senate: Impact statement from TAX (SB486)
02/10/16 Senate: Continued to 2017 in Finance (14-Y 0-N)
12/02/16 Senate: Left in Finance

SB 533 Sales and use tax; exemption for certain nonprofit entities.

Chief patron: Surovell

Summary as introduced:
Sales and use tax; exemption for certain nonprofit entities. Provides exemptions from sales and use tax and local license taxes for certain nonprofit veterans organizations.

01/13/16 Senate: Prefiled and ordered printed; offered 01/13/16 16103359D
01/13/16 Senate: Referred to Committee on Finance
01/29/16 Senate: Impact statement from TAX (SB533)
02/03/16 Senate: Continued to 2017 in Finance (15-Y 0-N)
12/02/16 Senate: Left in Finance

SB 733 Income tax, state; annual adjustment for inflation.

Chief patron: Obenshain

Summary as introduced:
Individual income tax; adjusted for inflation. Adjusts Virginia's individual income tax brackets, standard deduction, and personal exemption amounts annually beginning with the 2016 taxable year by the percentage increase in the Consumer Price Index for all urban consumers (CPI-U), for all items, from July 1 through June 30 for the year immediately preceding the taxable year.

01/22/16 Senate: Presented and ordered printed 16103589D
01/22/16 Senate: Referred to Committee on Finance
02/01/16 Senate: Impact statement from TAX (SB733)
02/09/16 Senate: Continued to 2017 in Finance (15-Y 0-N)
12/02/16 Senate: Left in Finance

SB 741 Tax administration; awards for detection of tax underpayments.

Chief patron: Surovell

Summary as introduced:
Tax administration; awards for detection of tax underpayments. Creates a program for the payment of monetary rewards to individuals who provide information to the Tax Commissioner that leads to the successful collection of taxes that are owed by other individual or business taxpayers. Awards may only be given if the underpaying individual taxpayer's income exceeds $100,000 or the underpaying business taxpayer's income exceeds $500,000, and the amount in question exceeds $50,000.

01/22/16 Senate: Presented and ordered printed 16101999D
01/22/16 Senate: Referred to Committee on Finance
02/01/16 Senate: Impact statement from TAX (SB741)
02/03/16 Senate: Continued to 2017 in Finance (15-Y 0-N)
12/02/16 Senate: Left in Finance

SB 757 Income tax, state; modifies tax by establishing a flat 5.75% tax on all taxable income.

Chief patron: Obenshain

Summary as introduced:
Individual income tax. Modifies the individual income tax by establishing a flat 5.75% tax on all taxable income. The bill also increases the standard deduction from $6,000 to $15,000 for married persons and from $3,000 to $7,500 for single individuals. The changes are effective for taxable years beginning on and after January 1, 2017.

01/22/16 Senate: Presented and ordered printed 16103590D
01/22/16 Senate: Referred to Committee on Finance
02/01/16 Senate: Impact statement from TAX (SB757)
02/09/16 Senate: Continued to 2017 in Finance (15-Y 0-N)
12/02/16 Senate: Left in Finance

SB 787 Sales & use tax; prohibits accelerated collection of payments from retail merchants & other dealers.

Chief patron: Sturtevant

Summary as introduced:
Accelerated sales and use tax payments. Prohibits the accelerated collection of sales and use tax payments from retail merchants and other dealers who collect and return sales and use tax payments.

08/22/16 Senate: Prefiled and ordered printed; offered 01/11/17 17100185D
08/22/16 Senate: Referred to Committee on Finance
01/14/17 Senate: Impact statement from TAX (SB787)
01/25/17 Senate: Passed by indefinitely in Finance (16-Y 0-N)

SB 788 Income tax, state; rate of taxation.

Chief patron: Sturtevant

Summary as introduced:
Individual income tax; rate of taxation. Lowers the rate of taxation for each income bracket by one-quarter percent each year for four years beginning in taxable year 2018. For taxable years beginning on and after January 1, 2021, income will be taxed as follows: (i) one percent on income not exceeding $3,000, (ii) two percent on income in excess of $3,000 but not in excess of $5,000, (iii) four percent on income in excess of $5,000 but not in excess of $17,000, and (iv) 4.75 percent on income in excess of $17,000.

08/22/16 Senate: Prefiled and ordered printed; offered 01/11/17 17100191D
08/22/16 Senate: Referred to Committee on Finance
01/17/17 Senate: Impact statement from TAX (SB788)
01/24/17 Senate: Passed by indefinitely in Finance (15-Y 1-N)

SB 789 Income tax, corporate; rate of taxation.

Chief patron: Sturtevant

Summary as introduced:
Corporate income tax; rate of taxation. Lowers the corporate income tax rate from six percent to 5.5 percent for taxable years beginning on or after January 1, 2018.

08/22/16 Senate: Prefiled and ordered printed; offered 01/11/17 17100192D
08/22/16 Senate: Referred to Committee on Finance
01/15/17 Senate: Impact statement from TAX (SB789)
01/24/17 Senate: Passed by indefinitely in Finance (15-Y 1-N)

SB 793 Small businesses; waiver of tax penalties.

Chief patron: Sturtevant

Summary as introduced:
Waiver of tax penalties for small businesses. Waives any penalties related to taxes administered by the Department of Taxation for a small business during its first two years of operation as long as the business enters into an installment agreement with the Tax Commissioner for the payment of taxes.

02/15/17 Senate: Senate acceded to request (33-Y 2-N)
02/15/17 Senate: Conferees appointed by Senate
02/15/17 Senate: Senators: Sturtevant, Obenshain, Barker
02/15/17 House: Conferees appointed by House
02/15/17 House: Delegates: Cline, Massie, Kory

SB 798 Virginia adjusted gross income; sale of certain crops to craft breweries.

Chief patron: Stanley

Summary as introduced:
Virginia adjusted gross income; sale of certain crops to craft breweries. Provides an income tax subtraction, for purposes of computing Virginia adjusted gross income, for the income attributable to the sale of crops grown by a farmer to a brewery licensed in Virginia.

01/31/17 House: Referred to Committee on Finance
02/03/17 Senate: Impact statement from TAX (SB798)
02/09/17 House: Assigned Finance sub: Subcommittee #3
02/10/17 House: Subcommittee recommends laying on the table
02/21/17 House: Left in Finance

SB 804 Retail Sales and Use Tax; media-related exemptions.

Chief patron: Hanger

Summary as introduced:

Retail sales and use tax; media-related exemptions. Extends from July 1, 2017, to July 1, 2022, the expiration of the retail sales and use tax exemption for printing purchased by an advertising business from a printer in the Commonwealth, so long as such material is distributed outside of the Commonwealth.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/21/17 Senate: Impact statement from TAX (SB804ER)

SB 835 Income tax, corporate; lowers tax rate to 2.5 percent.

Chief patron: Chase

Summary as introduced:
Corporate income tax; rate of taxation. Lowers the corporate income tax rate from six percent to 2.5 percent, effective January 1, 2017.

11/15/16 Senate: Prefiled and ordered printed; offered 01/11/17 17100371D
11/15/16 Senate: Referred to Committee on Finance
01/14/17 Senate: Impact statement from TAX (SB835)
01/24/17 Senate: Passed by indefinitely in Finance (15-Y 1-N)

SB 836 License taxes; if locality imposes tax upon business, tax shall be based upon Va. taxable income.

Chief patron: Chase

Summary as introduced:
License taxes; Virginia taxable income. Provides that if a locality imposes a license tax upon a business, the tax shall be based upon the Virginia taxable income of the business. Current law allows a locality to impose the tax upon gross receipts or Virginia taxable income.

11/15/16 Senate: Prefiled and ordered printed; offered 01/11/17 17101006D
11/15/16 Senate: Referred to Committee on Finance
01/14/17 Senate: Impact statement from TAX (SB836)
01/24/17 Senate: Passed by indefinitely in Finance (15-Y 1-N)
01/30/17 Senate: Impact statement from DHCD/CLG (SB836)

SB 849 Income tax, state; creates a deduction for small business owners.

Chief patron: Chase

Summary as introduced:
Virginia taxable income; deduction for small business owners. Creates an income tax deduction for taxable years beginning on and after January 1, 2017, for income attributable to the ownership and operation of a small business. For purposes of the deduction, a small business is defined as a business that has its primary place of business in the Commonwealth, generates less than $100,000 of taxable income in the taxable year, and has fewer than 50 employees. A small business owner would only be eligible to take the deduction for the first five years that the business is in operation.

12/02/16 Senate: Prefiled and ordered printed; offered 01/11/17 17100499D
12/02/16 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB849)
01/24/17 Senate: Passed by indefinitely in Finance (15-Y 1-N)

SB 886 Gas severance tax.

Chief patron: Chafin

Summary as introduced:

Gas severance tax. Extends the sunset date from January 1, 2018, to January 1, 2020, for the local gas severance tax that is dedicated to (i) the local Coal and Gas Road Improvement Fund, (ii) the Virginia Coalfield Economic Development Fund, and (iii) water, sewer, and natural gas systems and lines. This bill is identical to HB 2169.

02/17/17 Senate: Bill text as passed Senate and House (SB886ER)
02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 925 Plastic bag tax in the Chesapeake Bay Watershed.

Chief patron: Petersen

Summary as introduced:
Plastic bag tax in the Chesapeake Bay Watershed. Imposes a five-cent per bag tax on plastic bags provided to customers by certain retailers in localities located wholly within the Chesapeake Bay Watershed and directs revenues to be used to support the Chesapeake Bay Watershed Implementation Plan. The bill also allows every retailer that collects the tax to retain one cent of the five-cent tax.

12/27/16 Senate: Prefiled and ordered printed; offered 01/11/17 17101879D
12/27/16 Senate: Referred to Committee on Finance
01/15/17 Senate: Impact statement from TAX (SB925)
01/18/17 Senate: Passed by indefinitely in Finance (10-Y 4-N)

SB 948 Tobacco Board; composition, increases excise tax on bright flue-cured & type 21 dark-fired tobacco.

Chief patron: Ruff

Summary as passed Senate:

Tobacco Board; commodity board member nominations and terms; assessment. Alters the member nomination process, tax rate, and other functions of the Tobacco Board (the Board). The bill removes the 90-day deadline for submission of industry nominees for a seat on the Board, as well as the requirement that there be two or more nominations for each seat. The bill removes from the Board the power to appoint a secretary and other employees. Finally, the bill raises the excise tax on tobacco from 20 cents to 40 cents per 100 pounds of tobacco harvested and renames it an assessment; authorizes the Board, at its discretion, to waive interest on the assessment when it is paid late or is left unpaid; and provides criteria for such waiver. This bill is identical to HB 2254.

02/13/17 Senate: Signed by President
02/13/17 House: Signed by Speaker
02/14/17 Senate: Enrolled Bill Communicated to Governor on 2/14/17
02/14/17 Governor: Governor's Action Deadline Midnight, February 21, 2017
02/20/17 Governor: Approved by Governor-Chapter 66 (effective 7/1/17)

SB 956 County food and beverage tax.

Chief patron: Locke

Summary as introduced:
County food and beverage tax. Increases from four percent to eight percent the maximum tax that any county is authorized to impose on food and beverages sold by a restaurant, commonly referred to as the meals tax. The bill also removes the requirement that a county hold a referendum before imposing a meals tax.

01/02/17 Senate: Prefiled and ordered printed; offered 01/11/17 17101430D
01/02/17 Senate: Referred to Committee on Finance
01/04/17 Senate: Impact statement from DHCD (SB956)
01/22/17 Senate: Impact statement from TAX (SB956)
01/24/17 Senate: Passed by indefinitely in Finance (13-Y 3-N)

SB 962 Sales and use tax; nexus for out-of-state businesses.

Chief patron: Hanger

Summary as introduced:

Sales and use tax; nexus for out-of-state businesses. Provides that storage of inventory in the Commonwealth is sufficient nexus to require out-of-state businesses to collect sales and use tax on sales to customers in the Commonwealth. This bill is identical to HB 2058.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/21/17 Senate: Impact statement from TAX (SB962ER)

SB 963 Land preservation tax credit; per taxpayer limitation.

Chief patron: Hanger

Summary as introduced:
Land preservation tax credit; per taxpayer limitation. Extends to taxable year 2017 the $20,000 limit on the amount that a taxpayer may claim per year under the land preservation tax credit. The bill retains the $50,000 limit for each subsequent taxable year.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/21/17 Senate: Impact statement from TAX (SB963ER)

SB 977 Commonwealth's tax code; conformity with federal law; emergency.

Chief patron: Hanger

Summary as passed:

Commonwealth's tax code; conformity with federal law; emergency. Advances conformity with the federal tax code to December 31, 2016. The bill contains an emergency clause. This bill is identical to HB 1521.

EMERGENCY

02/07/17 House: Signed by Speaker
02/08/17 Senate: Enrolled Bill Communicated to Governor on 2/8/17
02/08/17 Governor: Governor's Action Deadline Midnight, February 15, 2017
02/09/17 Senate: Impact statement from TAX (SB977ER)
02/13/17 Governor: Approved by Governor-Chapter 2 (effective 2/13/17)

SB 982 Motion picture production tax credit.

Chief patron: Stanley

Summary as introduced:

Motion picture production tax credit. Extends the sunset date of the motion picture production tax credit from January 1, 2019, to January 1, 2022. This bill is identical to HB 1665.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Impact statement from TAX (SB982ER)
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 1018 Temporary exemption periods from retail sales and use taxes for qualifying items; sunset dates.

Chief patron: Barker

Summary as introduced:

Temporary exemption periods from retail sales and use taxes for qualifying items; sunset dates. Extends from July 1, 2017, to July 1, 2022, the sunset dates for the sales tax holiday periods for school supplies and clothing, Energy Star and WaterSense products, and hurricane preparedness products. This bill is identical to HB 1529.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/21/17 Senate: Impact statement from TAX (SB1018ER)

SB 1025 Payment of estimated taxes by certain public service corporations; repeal.

Chief patron: Dunnavant

Summary as introduced:
Payment of estimated taxes by certain public service corporations; repeal. Repeals provisions requiring that certain public service corporations make payments of estimated state licenses taxes to the State Corporation Commission. The bill has a delayed effective date of January 1, 2019.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017
02/21/17 Senate: Impact statement from SCC (SB1025ER)

SB 1029 Virginia taxable income; deduction for personal exemptions.

Chief patron: Dunnavant

Summary as introduced:
Virginia taxable income; deduction for personal exemptions. Increases the deduction, for purposes of computing Virginia taxable income, for personal exemptions. For taxable years beginning on and after January 1, 2018, a taxpayer may deduct $1,000 for each personal exemption allowable to the taxpayer on federal income taxes; current law allows a deduction of $930 per exemption. A blind or aged taxpayer may deduct an additional personal exemption in the amount of $900; current law allows an additional deduction of $800.

01/04/17 Senate: Prefiled and ordered printed; offered 01/11/17 17101801D
01/04/17 Senate: Referred to Committee on Finance
01/17/17 Senate: Impact statement from TAX (SB1029)
01/25/17 Senate: Passed by indefinitely in Finance (16-Y 0-N)

SB 1034 Historic rehabilitation tax credit.

Chief patron: Howell

Summary as passed Senate:

Historic rehabilitation tax credit. Limits the amount of historic rehabilitation tax credits that may be claimed by each taxpayer to $5 million per year, including any amounts carried over from prior taxable years. The limit is in effect for taxable years beginning on and after January 1, 2017, but before January 1, 2018.

02/15/17 Senate: Senate acceded to request (36-Y 1-N)
02/15/17 Senate: Conferees appointed by Senate
02/15/17 Senate: Senators: Howell, Hanger, Ruff
02/15/17 House: Conferees appointed by House
02/15/17 House: Delegates: Bloxom, Farrell, Sullivan

SB 1106 Made in Appalachia Initiative; refundable tax credits.

Chief patron: Chafin

Summary as introduced:
Made in Appalachia Initiative; tax credits. Establishes beginning in taxable year 2017 refundable tax credits for certain investments in the localities of the Appalachian region. The bill defines the "Appalachian region" to include the localities of the Cumberland Plateau, LENOWISCO, and Mount Rogers planning districts. Any person may claim a credit in the amount of (i) 10 percent of any capital investment in the Appalachian region, (ii) $6,000 per full-time job created in the Appalachian region that pays at or above the locality's median wage, and (iii) the sales tax paid by the person in purchasing materials directly used in the manufacture of products in the Appalachian region.

The bill authorizes the Department of Taxation to issue up to $40 million in credits per taxable year. Any person who earns credits would be allowed to transfer unused credits to another taxpayer; however, such transfer would be subject to a fee of one percent of the dollar amount of the credits.

01/09/17 Senate: Prefiled and ordered printed; offered 01/11/17 17101048D
01/09/17 Senate: Referred to Committee on Finance
01/21/17 Senate: Impact statement from TAX (SB1106)
01/31/17 Senate: Passed by indefinitely in Finance with letter (14-Y 1-N)

SB 1107 Sales and use tax; prohibits any requirement that a dealer remit accelerated payments, exception.

Chief patron: Sturtevant

Summary as introduced:
Accelerated sales and use tax payments. Prohibits any requirement that a dealer remit sales and use tax payments except under the following circumstances: (i) if payments are required for dealers with sales of $15 million or less, such threshold may only be lowered by 10 percent the next year; (ii) if the Department of Taxation fails to notify dealers that accelerated payments are due at least nine months in advance, no penalty may be assessed for late payments; and (iii) no penalty may be assessed on a dealer subject to an accelerated payment due to a lowered threshold in the calendar year. The bill prohibits requiring accelerated payments after June 30, 2020.

01/09/17 Senate: Prefiled and ordered printed; offered 01/11/17 17101002D
01/09/17 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB1107)
01/25/17 Senate: Passed by indefinitely in Finance (16-Y 0-N)

SB 1137 Neighborhood assistance tax credits; reduces amount of credit of value for certain donations.

Chief patron: Mason

Summary as introduced:
Neighborhood assistance tax credits. Reduces the amount of the tax credit from 65 percent of the value of donations to neighborhood organizations for taxable years 2012 through 2017 to (i) 60 percent of such donations for taxable year 2018, (ii) 55 percent of such donations for taxable year 2019, and (iii) 50 percent of such donations for taxable years 2020 and thereafter.

01/09/17 Senate: Prefiled and ordered printed; offered 01/11/17 17102283D
01/09/17 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB1137)
01/31/17 Senate: Passed by indefinitely in Finance (15-Y 0-N)

SB 1165 Neighborhood Assistance Act tax credits; allocation of credits.

Chief patron: DeSteph

Summary as introduced:
Neighborhood Assistance Act tax credits; allocation of credits. Requires the Commissioner of Social Services and the Superintendent of Public Instruction to consider, in allocating credits under the Neighborhood Assistance Act tax credit program, the past performance of organizations requesting credits, pursuant to accountability measures established in regulations and guidelines.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Impact statement from TAX (SB1165ER)
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 1167 Education programs; allocation of unissued tax credits.

Chief patron: DeSteph

Summary as introduced:
Tax credits related to education; aggregate cap. Allocates 20 percent of any unissued credits in a fiscal year under the Education Improvement Scholarships tax credit program to the Superintendent of Public Instruction to be allocated to education programs under the Neighborhood Assistance Act tax credit program during the next fiscal year. The 20 percent of unissued credits would be added to the current $9 million cap for education programs under the Neighborhood Assistance Act tax credit program.

01/09/17 Senate: Prefiled and ordered printed; offered 01/11/17 17101262D
01/09/17 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB1167)
01/31/17 Senate: Passed by indefinitely in Finance (14-Y 1-N)

SB 1168 Neighborhood Assistance Act; reorganizes provisions of tax credit program.

Chief patron: DeSteph

Summary as introduced:
Neighborhood Assistance Act Tax Credit program. Reorganizes the provisions of the Neighborhood Assistance Act Tax Credit program to set out separate sections for the portions of the program administered by the State Department of Social Services and the Department of Education. The requirements of the two components of the program differ slightly, and separating the provisions provides clarity in understanding the application and allocation process. The bill does not make any substantive changes to the existing program.

02/15/17 Senate: Senate acceded to request (35-Y 1-N)
02/15/17 Senate: Conferees appointed by Senate
02/15/17 Senate: Senators: DeSteph, Dunnavant, Spruill
02/15/17 House: Conferees appointed by House
02/15/17 House: Delegates: Orrock, Farrell, Heretick

SB 1186 All-terrain vehicles, mopeds, and off-road motorcycles; subject to motor vehicle tax.

Chief patron: Dance

Summary as passed Senate:

Taxation of all-terrain vehicles, mopeds, and off-road motorcycles. Provides that all-terrain vehicles, mopeds, and off-road vehicles shall be subject to the motor vehicle sales and use tax but exempt from the retail sales and use tax. Current law provides that such vehicles are subject to the retail sales and use tax but exempt from the motor vehicle sales and use tax.  The motor vehicle sales and use tax would be imposed at the same rate as the state and local sales and use tax; 6% in Planning Districts 8 and 23, at a rate of 5.3% in the rest of the state. The revenues collected from the motor vehicle sales tax on all-terrain vehicles, mopeds, and off-road vehicles would be distributed in the same manner as the state and local retail sales and use tax.

01/31/17 House: Placed on Calendar
01/31/17 House: Read first time
01/31/17 House: Referred to Committee on Finance
02/03/17 Senate: Impact statement from TAX (SB1186S1)
02/13/17 House: Failed to report (defeated) in Finance (7-Y 15-N)

SB 1249 Income tax, state; credit for certain disabled veterans, etc.

Chief patron: Stuart

Summary as introduced:
Income tax credit. Provides a refundable income tax credit in the amount of $4,000 to any disabled veteran and his surviving spouse, and to the surviving spouse of a member of the armed services killed in action, who are otherwise eligible for the real property tax exemption on their primary residence except that they do not own their primary residence.

01/10/17 Senate: Prefiled and ordered printed; offered 01/11/17 17103499D
01/10/17 Senate: Referred to Committee on Finance
01/26/17 Senate: Impact statement from TAX (SB1249)
01/31/17 Senate: Stricken at request of Patron in Finance (16-Y 0-N)

SB 1268 Localities; public hearings for tax rate increases.

Chief patron: Ebbin

Summary as introduced:
Localities; public hearings for tax rate increases. Authorizes localities to hold hearings on tax rate increases at the same time as the annual budget hearing. Current law requires a hearing on a tax rate increase to occur at a separate proceeding.

01/31/17 House: Referred to Committee on Finance
02/03/17 House: Assigned Finance sub: Subcommittee #1
02/03/17 Senate: Impact statement from TAX (SB1268)
02/08/17 House: Subcommittee recommends laying on the table
02/21/17 House: Left in Finance

SB 1286 Land preservation tax credits; withholding tax of nonresident owners.

Chief patron: Obenshain

Summary as passed Senate:

Land preservation tax credits; withholding tax of nonresident owners. Provides that the two percent transfer fee for land preservation tax credits shall not apply to a distribution of credits to a nonresident owner of a pass-through entity when such credits are applied by the pass-through entity to the withholding tax of the nonresident owner.

02/17/17 Senate: Bill text as passed Senate and House (SB1286ER)
02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 1296 County food and beverage tax; referendum.

Chief patron: Vogel

Summary as introduced:
County food and beverage tax; referendum. Prohibits a county from holding a new referendum on the levy of a food and beverage tax in the three calendar years subsequent to the electoral defeat of such a referendum. The bill also requires the ballot for any such referendum to state the total tax, as a percentage, that would be imposed on food and beverage if the referendum were to pass, based upon a four percent food and beverage tax and any other ad valorem taxes applicable to the purchase of prepared food and beverage in the county.

02/15/17 House: Passed House with amendment (67-Y 31-N 1-A)
02/15/17 House: VOTE: PASSAGE (67-Y 31-N 1-A)
02/17/17 Senate: House amendment agreed to by Senate (32-Y 8-N)
02/22/17 Senate: Enrolled
02/22/17 Senate: Bill text as passed Senate and House (SB1296ER)

SB 1308 Sales and use tax; collection of taxes from consuming contractors.

Chief patron: McDougle

Summary as introduced:

Collection of sales and use tax. Removes the exception that persons selling certain products, such as window shades, kitchen equipment, and countertops, are deemed to be retailers and not consuming contractors for purposes of collecting sales and use tax, even if they intend to install such items for contractors. Generally, tangible personal property incorporated into real property is deemed to have been purchased for consumption by the contractor. This bill is identical to HB 1890.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Impact statement from TAX (SB1308ER)
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 1314 Retail Sales and Use Tax; spirits sold at government stores.

Chief patron: Carrico

Summary as introduced:
Retail sales and use tax; spirits sold at government stores. Imposes a new one percent retail sales and use tax on the sale of spirits at Alcoholic Beverage Control-operated stores in the Commonwealth. The revenues would be deposited into a new fund to be used to support law-enforcement personnel and law-enforcement duties in the Commonwealth, as may be specified in a general appropriation act.

01/10/17 Senate: Prefiled and ordered printed; offered 01/11/17 17100650D
01/10/17 Senate: Referred to Committee on Finance
01/21/17 Senate: Impact statement from TAX (SB1314)
01/25/17 Senate: Passed by indefinitely in Finance (16-Y 0-N)

SB 1329 Cigarettes; all localities allowed to impose a tax.

Chief patron: Carrico

Summary as introduced:
Local cigarette taxes. Allows all localities to impose a cigarette tax by removing the requirement that only those localities that had such authority prior to 1977 are eligible. The bill sets a maximum rate on the cigarette tax imposed by counties of five cents per pack or the amount levied under state law, whichever is greater.

01/10/17 Senate: Prefiled and ordered printed; offered 01/11/17 17102994D
01/10/17 Senate: Referred to Committee on Finance
01/21/17 Senate: Impact statement from TAX (SB1329)
01/24/17 Senate: Passed by indefinitely in Finance (15-Y 1-N)
01/30/17 Senate: Impact statement from DHCD/CLG (SB1329)

SB 1336 Sales and use tax; school supplies and hurricane preparedness sales tax holidays.

Chief patron: Surovell

Summary as introduced:
School supplies and hurricane preparedness sales tax holidays. Adds to the existing sales tax holiday for school supplies, clothing, and footwear an exemption for computers sold at $700 or less. The bill removes from the hurricane preparedness sales tax holiday the exemption for generators.

The bill extends the sunset dates for the school supplies and hurricane preparedness sales tax holidays from 2017 to 2022.

01/10/17 Senate: Prefiled and ordered printed; offered 01/11/17 17101098D
01/10/17 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB1336)
01/31/17 Senate: Passed by indefinitely in Finance (11-Y 5-N)

SB 1350 Motor vehicle sales and use tax; refund to purchaser.

Chief patron: Deeds

Summary as passed Senate:

Motor vehicle sales and use tax; refund. Allows a purchaser to be refunded any motor vehicle sales and use tax paid if the vehicle is returned pursuant to the Virginia Motor Vehicle Warranty Act, or if the vehicle is returned within 45 days of purchase, and the purchase price is refunded, due to a mechanical defect or failure. The bill requires a person claiming the refund due to a mechanical defect or failure to submit an affidavit to the Commissioner of the Department of Motor Vehicles stating that the vehicle was returned due to a mechanical defect or failure, the purchase price was refunded, the title was assigned to the person accepting the return, and the purchaser no longer has possession of the vehicle.

02/17/17 Senate: Impact statement from DPB (SB1350ER)
02/17/17 House: Signed by Speaker
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 1361 Food donation; tax credit for restaurants that donate prepared food or meals.

Chief patron: Carrico

Summary as introduced:
Food donation tax credit. Allows restaurants that donate prepared food or meals to a nonprofit food bank to claim the food donation tax credit. Under current law, only farmers that donate food crops to a nonprofit food bank are eligible for the credit. Current law allows a maximum of $5,000 in credits to be issued per taxpayer per year and an aggregate maximum of $250,000 in credits to be issued by the Tax Commissioner per fiscal year.

02/08/17 House: Referred to Committee on Finance
02/09/17 House: Assigned Finance sub: Subcommittee #3
02/09/17 Senate: Impact statement from TAX (SB1361)
02/10/17 House: Subcommittee recommends laying on the table
02/21/17 House: Left in Finance

SB 1386 Income tax, state; creates a new tax bracket for small businesses.

Chief patron: Sturtevant

Summary as introduced:
Rate of individual income tax; small businesses. Creates a new tax bracket for small businesses filing taxes as individuals in Virginia. The standard tax rates would be lowered one-quarter of a percent over four years, to establish tax rates of one percent for income not in excess of $3,000, two percent for income between $3,001 and $5,000, four percent for income between $5,001 and $17,000, and 4.75 percent for income over $17,000. The bill defines "small business" as a sole proprietorship or pass-through entity with 25 or fewer employees.

01/11/17 Senate: Prefiled and ordered printed; offered 01/11/17 17102966D
01/11/17 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB1386)
01/25/17 Senate: Stricken at request of Patron in Finance (16-Y 0-N)

SB 1438 Virginia Tax Amnesty Program; established.

Chief patron: Norment

Summary as introduced:

Virginia Tax Amnesty Program. Establishes the Virginia Tax Amnesty Program to be administered by the Department of Taxation (the Department) during the 2017-2018 fiscal year for not less than 60 nor more than 75 days, as determined by the Tax Commissioner. The Program will be open to any taxpayer that is required but has failed to file a return or to pay any tax administered by the Department. All civil or criminal penalties assessed or assessable and one-half of the interest assessed or assessable, resulting from nonpayment, underpayment, nonreporting, or underreporting of tax liabilities, will be waived upon payment of the taxes and interest. For purposes of implementing the Program, the Department is exempt from the project management and procurement oversight of the Virginia Information Technologies Agency. This bill is identical to HB 2246.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Impact statement from TAX (SB1438ER)
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 1451 Motion picture production; amends tax credit.

Chief patron: Lucas

Summary as introduced:
Motion picture production tax credit. Amends the motion picture production tax credit by allowing a 20% credit for a production for which 80% of the filming or production takes place in the Commonwealth at a federally designated Historically Underutilized Business Zone, at a federal landmark, or in a federal historic district. There would be no sunset for the credits that meet these criteria, and the credits would not be subject to the $6.5 million aggregate cap. The bill also clarifies that the Department of Taxation shall annually publish certain information about the credit regardless of the number of taxpayers that claim the credit.

01/16/17 Senate: Presented and ordered printed 17103248D
01/16/17 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB1451)
01/31/17 Senate: Stricken at request of Patron in Finance (16-Y 0-N)

SB 1470 Coal tax; limits aggregate amount of credits that may be allocated or claimed for employment, etc.

Chief patron: Chafin

Summary as passed Senate:

Coal tax credits. Reinstates the Virginia coal employment and production incentive tax credit. The credit, which expired on July 1, 2016, could be earned on and after January 1, 2017, but before January 1, 2022. The bill limits the aggregate amount of credits that may be allocated or claimed for the coal employment and production incentive tax credit in each fiscal year to $7.3 million. An electricity generator must file an application with the Department of Taxation each year to determine the amount of credits that it may claim or allocate, including credits earned in prior taxable years. If the total amount of credits earned in a taxable year exceeds $7.3 million, the Department of Taxation shall apportion the credits on a pro rata basis. The bill also extends the sunset date of the coalfield employment enhancement tax credit through taxable years beginning before January 1, 2022. This bill is identical to HB 2198.

02/17/17 House: Signed by Speaker
02/18/17 Senate: Impact statement from TAX (SB1470ER)
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SB 1485 Tax credits; expiration of certain tax credits.

Chief patron: Sturtevant

Summary as introduced:
Expiration of certain tax credits. Adds a sunset date of January 1, 2022, to all existing tax credits that do not currently have a sunset date.

01/17/17 Senate: Presented and ordered printed 17103480D
01/17/17 Senate: Referred to Committee on Finance
01/26/17 Senate: Impact statement from TAX (SB1485)
02/01/17 Senate: Passed by indefinitely in Finance with letter (16-Y 0-N)

SB 1526 Income-producing realty; income data.

Chief patron: Obenshain

Summary as introduced:
Income-producing realty; income data. Authorizes the owner of certain income-producing realty to submit documents other than statements of income and expenses to a real estate assessor, board of assessors, or department of real estate assessments for purposes of valuation of the property. The bill specifies that such other documents include appraisals, tax returns that demonstrate the income generated by the property, or other documents relevant to the valuation of the property.

01/20/17 Senate: Presented and ordered printed 17104394D
01/20/17 Senate: Referred to Committee on Finance
01/22/17 Senate: Impact statement from TAX (SB1526)
01/23/17 Senate: Impact statement from DHCD (SB1526)
02/01/17 Senate: Passed by indefinitely in Finance (16-Y 0-N)

SB 1531 Teachers, qualified; creates dependent care tax credit.

Chief patron: Lewis

Summary as introduced:
Dependent care tax credit for qualified teachers. Creates a tax credit for the household and dependent care expenses of teachers who teach at public elementary or secondary schools in the Commonwealth at which at least 40% of the students qualify for free or reduced lunch. The credit would be equal to the federal household and dependent care tax credit and would be in addition to the state income tax deduction for such expenses. The total amount of credits available would be capped at $1 million per year. The credit would be available for taxable years beginning on and after January 1, 2017, but before January 1, 2022.

01/20/17 Senate: Presented and ordered printed 17104020D
01/20/17 Senate: Referred to Committee on Finance
01/25/17 Senate: Impact statement from TAX (SB1531)
01/31/17 Senate: Passed by indefinitely in Finance with letter (16-Y 0-N)

SB 1540 Tax credits, certain; aggregate caps.

Chief patron: Sturtevant

Summary as introduced:
Certain tax credits; aggregate caps. Reduces the total aggregate caps of the historic rehabilitation tax credit, the research and development expenses tax credit, the major research and development expenses tax credit, and the land preservation tax credit over a period of 10 years, so that no credits are available for any of the credits beginning in 2027.

01/20/17 Senate: Presented and ordered printed 17103686D
01/20/17 Senate: Referred to Committee on Finance
01/30/17 Senate: Impact statement from TAX (SB1540)
01/31/17 Senate: Passed by indefinitely in Finance (16-Y 0-N)

SB 1545 Income tax, state; credit for budget surplus.

Chief patron: Vogel

Summary as introduced:
Individual income tax credit; return of budget surplus. Requires several actions relating to Virginia taxable income if a general fund surplus is recorded in a fiscal year.

First, the bill establishes a refundable individual income tax credit that is a portion of the general fund surplus for the corresponding fiscal year. If $50 million or more in general fund surplus remains after assignments of the surplus for the Revenue Stabilization Fund, the Virginia Water Quality Improvement Fund, the Transportation Trust Fund, and other mandatory assignments, then a refundable income tax credit would be allowed for the corresponding taxable year equal to the remaining surplus divided by the number of individual income tax returns filed for the most recent taxable year. If less than $50 million in general fund surplus remains after such mandatory assignments, no tax credit would be available and the remaining surplus would be assigned by the Comptroller for nonrecurring expenditures. The credit could be claimed only by those individuals who were required under Virginia law to file an individual income tax return and filed such return.

Second, if actual general fund revenues exceed the official general fund forecast by at least $500 million in a fiscal year, the income tax rate for Virginia taxable income in excess of $17,000 shall be lowered by one-quarter of one percent for the subsequent taxable year, until all income in excess of $5,000 is taxed at a rate of five percent.

Finally, if actual general fund revenues exceed the official general fund forecast by at least $50 million in a fiscal year, the corporate income tax rate shall be lowered by one percent for the subsequent taxable year.

01/20/17 Senate: Presented and ordered printed 17103831D
01/20/17 Senate: Referred to Committee on Finance
01/31/17 Senate: Impact statement from DPB (SB1545)
02/01/17 Senate: Passed by indefinitely in Finance with letter (14-Y 2-N)

SB 1576 Worker retraining and telework expenses; extends sunset date for tax credits.

Chief patron: Hanger

Summary as passed Senate:

Tax credits for worker retraining and telework expenses. Extends from taxable years prior to January 1, 2018, to taxable years prior to January 1, 2022, the sunset date for the worker retraining tax credit and transfers the certification of eligible worker retraining programs from the Department of Small Business and Supplier Diversity to the Virginia Economic Development Partnership Authority. The bill also extends from taxable years prior to January 1, 2017, to taxable years prior to January 1, 2022, the sunset date for the telework expenses tax credit. This bill is identical to HB 1814.

02/17/17 House: Signed by Speaker
02/20/17 Senate: Impact statement from TAX (SB1576ER)
02/20/17 Senate: Signed by President
02/21/17 Senate: Enrolled Bill Communicated to Governor on 2/21/17
02/21/17 Governor: Governor's Action Deadline Midnight, March 27, 2017

SJ 47 Constitutional amendment; exemption from taxation of certain motor vehicles (first reference).

Chief patron: Petersen

Summary as introduced:
Constitutional amendment (first resolution); exemption from taxation of certain motor vehicles. Exempts privately owned motor vehicles used for nonbusiness purposes from property taxes.

01/06/16 Senate: Prefiled and ordered printed; offered 01/13/16 16103434D
01/06/16 Senate: Referred to Committee on Privileges and Elections
01/19/16 Senate: Continued to 2017 in Privileges and Elections (12-Y 0-N)
12/02/16 Senate: Left in Privileges and Elections

SJ 284 Constitutional amendment (first resolution); real property tax; exemption for surviving spouse.

Chief patron: Stuart

Summary as introduced:
Constitutional amendment (first resolution); real property tax; exemption for surviving spouse of a soldier who died in a combat zone. Provides that the real property tax exemption for the principal residence of the surviving spouse of a member of the armed forces killed in action also applies if the member died in a combat zone but was not killed in action.

02/17/17 House: House insisted on substitute
02/17/17 House: House requested conference committee
02/21/17 Senate: Senate acceded to request (40-Y 0-N)
02/21/17 Senate: Conferees appointed by Senate
02/21/17 Senate: Senators: Stuart, Cosgrove, Deeds

SJ 331 Constitutional amendment (first resolution);property tax; exemption for flooding remediation, etc.

Chief patron: Lewis

Summary as introduced:
Constitutional amendment (first resolution); property tax; exemption for flooding remediation, abatement, and resiliency efforts. Provides that the General Assembly may authorize a county, city, or town to partially exempt any real subject to recurring flooding upon which flooding abatement, mitigation, or resiliency efforts have been undertaken.

02/16/17 House: Subcommittee recommends reporting (4-Y 3-N)
02/17/17 House: Reported from Privileges and Elections (12-Y 10-N)
02/21/17 House: Taken up
02/21/17 House: Agreed to by House (59-Y 37-N)
02/21/17 House: VOTE: ADOPTION (59-Y 37-N)

Counts: HB: 74 HJ: 7 SB: 54 SJ: 3