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2001 SESSION

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HJ 685 Study; joint subcommittee to revise state tax code.

Introduced by: Robert F. McDonnell | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Revision of state tax code. Establishes a joint subcommittee to study the complete revision of the state tax code. The joint subcommittee shall perform the following: (i) examine the report and recommendations of the Commission on Virginia's State and Local Tax Structure for the 21st Century; (ii) seek broad input from all levels of government, the private sector, and citizens concerning the sufficiency of the Commonwealth's current tax system; (iii) consider the necessity and sufficiency of current taxes, fees, deductions and credits as well as the rates of taxation; (iv) consider current revenue capacity of localities and the sufficiency of their revenue tools; (v) clarify the definition of manufacturer for purposes of the business, professional, and occupational license tax; (vi) examine the number and costs of tax credits and deductions authorized each year; (vi) determine the loss in sales tax due to electronic commerce; (viii) evaluate the real estate assessment appeals process, the need for any changes to the process, and the effect that such changes would have on taxpayers and local governments; (ix) consider the long-term effect on the Commonwealth's revenues of the phase-out of personal property tax; (x) evaluate the appropriateness of the merchants capital tax and the business, professional and occupational license tax; (xi) consider a plan to more equitably address exemptions, deductions, and rates for personal and business income taxes; and (xii) determine the equitable division of support to be assumed by the state and localities for education and mandated services in light of the reforms recommended by the Commission. The aforementioned objectives represent the incorporation of HJR 782 (Reid), SJR 443 (Colgan), and SJR 387 (Hanger).

SUMMARY AS PASSED HOUSE:

Study; joint subcommittee to revise the state tax code. Establishes a joint subcommittee to study the complete revision of the state tax code. The joint subcommittee shall ensure that Virginia's tax code is fair, uniform, understandable, and contemporary. The joint subcommittee shall perform the following: (i) examine the report and recommendations of the Commission on Virginia's State and Local Tax Structure for the 21st Century; (ii) seek broad input from all levels of government, the private sector, and citizens concerning the sufficiency of the Commonwealth's current tax system; (iii) consider the necessity and sufficiency of current taxes, fees, deductions and credits as well as the rates of taxation; (iv) consider current revenue capacity of localities and the sufficiency of their revenue tools; (v) clarify the definition of manufacturer for purposes of the business, professional, and occupational license tax; (vi) examine other states with similar business license taxes and determine how manufacturers are defined and treated; (vii) confer with the commissioners of the revenue and manufacturers throughout the Commonwealth concerning issues pertaining to business, professional, and occupational license tax; (viii) examine the number of tax credits authorized each year; (ix) determine the loss in sales tax due to Internet purchases; (x) examine the extent to which the tax appeal process is unfair or is perceived reasonably to be unfair; (xi) evaluate the potential financial effect upon localities and the burdens upon assessors of changes to the tax appeal system; and (xii) identify the benefits of changing the tax appeal system, and recommend any changes to the tax appealsystem, including standards and burdens of proof, that will result in a more fair and balanced tax assessment system, including recommendations for minimizing any adverse financial effect upon localities. The aforementioned objectives represent the incorporation of HJR 782 (Reid) and certain requests of the House Rules Committee. The joint subcommittee must report its findings and recommendations by November 30, 2002 to the Virginia Code Commission, and to the Governor and the 2003 Session of the General Assembly.

SUMMARY AS INTRODUCED:

Study; joint subcommittee to revise the state tax code. Establishes a joint subcommittee to study the complete revision of the state tax code. The joint subcommittee is requested to report to the 2003 Session.