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2003 SESSION

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HB 1566 Taxation; Revenue Revitalization Act of 2003.

Introduced by: Phillip A. Hamilton | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Taxation; Revenue Revitalization Act of 2003. Eliminates the state 2 percent sales and use tax on food purchased for human consumption, leaving the half percent for transportation, the 1 percent based on average daily membership and the 1 percent local option. The bill also increases the sales and use tax rate to 9 percent on alcohol, beer and wine with all the revenues going to the general fund until such time as the Public Safety Trust Fund is created following the approval by a majority of the voters in a general election of a constitutional amendment requiring the Fund's creation.

The bill allows the Commonwealth to impose a tax on all tobacco products (cigarettes, cigars, snuff, chewing tobacco, and smoking tobacco) at the rate of 50 cents per pack or package and 5 cents per cigar. The revenues generated by the tobacco products tax shall be deposited into the general fund until such time as the Health Care Trust Fund is created following the approval by a majority of the voters in a general election of a constitutional amendment requiring the Fund's creation.

Finally, the bill allows all localities to impose a local option tobacco products tax at a rate not to exceed 25 cents per pack or package and 3 cents per cigar. Localities that imposed a cigarette tax at a higher rate as of January 1, 2003, may maintain that rate but shall not increase it. The cap on the local option tobacco products tax rate shall remain in effect until January 1, 2008.


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