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2000 SESSION
000256948Whereas, in March 1989, the United States Supreme Court ruled in Davis v. Michigan that the state’s practice of taxing federal pensions while exempting state workers’ pensions was unconstitutional; and
Whereas, the Commonwealth of Virginia was among 23 states faced with changing its income tax laws on retirement; and
Whereas, in an April 1989 Special Session, the General Assembly repealed the exemption for VRS retirement benefits so that the Commonwealth’s federal and state retirees would be taxed equally; and
Whereas, the special session did not address the issue of refunding the taxes paid by federal retirees between 1985 and 1988, which prompted the filing of Harper v. Commonwealth of Virginia on May 31, 1989; and
Whereas, in an effort to bring closure to the case for all the parties involved, on July 8, 1994, the General Assembly set in motion the settlement process with regard to the Harper litigation by passing Senate Bill 2008; and
Whereas, Senate Bill 2008, which was signed into law on July 13, 1994, required the Department of Taxation to send tax overpayment notices to retirees and begin a public notification program on August 1, 1994; and
Whereas, November 1, 1994, was the deadline for all federal retirees to respond to the August 1, 1994, notice in order to preserve their rights to recover any Virginia taxes paid on federal retirement income for taxable years through 1988; and
Whereas, in an effort to provide relief for retired federal and military taxpayers who were denied participation in the settlement process established by Senate Bill 2008, the General Assembly in the 1995 Session enacted House Bill 1564 and Senate Bill 831, which were signed in to law on March 14, 1995; and
Whereas, House Bill 1564 and Senate Bill 831 provided that retired federal and military taxpayers who failed to provide necessary information or missed the applicable deadlines, due to circumstances beyond their control, could file the necessary forms or documents within the 60-day period following their enactment; and
Whereas, George M. Murray (Mr. Murray) was a federal retiree and was unlawfully taxed on his federal pensions by the Commonwealth during the taxable years 1985 through 1988; and
Whereas, Mr. Murray received Form FR1 from the Department of Taxation in October of 1994; and
Whereas, Mr. Murray indicated on the form his intention to be bound by the outcome of the Harper litigation and promptly returned the form by regular mail in October of 1994 prior to the deadline; and
Whereas, Mr. Murray received no further notification from the Department regarding his status or the receipt of the form; and
Whereas, in February of 1999, Mr. Murray contacted the Department to determine the status; and
Whereas, the Department informed Mr. Murray that the Form FR1 had not been received; and
Whereas, the amount of the settlement that Mr. Murray would have received under the settlement is $ 4,125; and
Whereas, George M. Murray has no other means to obtain the relief, except by action of this body; now, therefore,
Be it enacted by the General Assembly of Virginia:
1. § 1. That there is hereby appropriated from the general fund of the state treasury the amount of $ 4,125 to be paid by check issued by the State Treasurer on warrant of the Comptroller to George M. Murray, upon the release by him of all claims against the Commonwealth and its political subdivisions, agencies, instrumentalities, officers, or employees arising out of the aforesaid occurrence.