AMENDMENT(S) REJECTED BY THE SENATE

SEN. CUCCINELLI

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5. The question of the effectiveness of this act shall be submitted to the qualified voters of the Commonwealth at the general election to be held on Tuesday, November 2, 2004. The referendum shall be supervised and held, notice thereof given, ballots prepared, returns made and certified, votes canvassed and results ascertained and made known, as provided by law. The ballots to be used at the election, shall pose the question in substantially the following form:

QUESTION: Shall Chapter ___, Acts of Assembly of 2004, changing Virginia’s tax structure take effect?

After the general election, the State Board of Elections shall without delay make out, certify, and transmit to the Governor an official copy of the report of the whole number of votes cast at the election for and against the act.

If a majority of those voting thereon shall vote in favor of this act, this act shall take effect. If a majority of those voting thereon shall vote against this act, this act shall not take effect.

The expenses incurred in conducting this election shall be defrayed as in the case of the election of members of the General Assembly.

Nothwithstanding any other provision of this act, this act shall become effective beginning January 1, 2005, provided that the referendum question herein is approved as required.

SEN. OBENSHAIN (RULED NOT GERMANE)

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by adding in Chapter 3 of Title 58.1 an article numbered 3.1, consisting of sections numbered 58.1-339.11 through 58.1-339.15,

SEN. OBENSHAIN (RULED NOT GERMANE)

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by adding in Chapter 3 of Title 58.1 an article numbered 3.1, consisting of sections numbered 58.1-339.11 through 58.1-339.15,

SEN. OBENSHAIN (RULED NOT GERMANE)

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Article 3.1.

Virginia Educational Choice Act.

§ 58.1-339.11. Definitions.

For the purposes of this chapter:

"Academic instruction" means instruction in reading, writing, mathematics, science, history (including art and music history), geography, social studies (including government and citizenship), literature, philosophy, and foreign languages.

"Poverty guidelines" means the poverty guidelines for the 48 contiguous states and the District of Columbia updated annually in the Federal Register by the U.S. Department of Health and Human Services under the authority of § 673 (2) of the Omnibus Budget Reconciliation Act of 1981.

"Qualified school" means either (i) a public elementary or secondary school charging tuition pursuant to subdivision A 2 of § 22.1-5 or § 22.1-269.1, or (ii) a nonprofit nonsectarian educational program, including home instruction, that satisfies the compulsory school attendance requirements of § 22.1-254.

"Qualifying educational expenses" means, with respect to a qualified school, tuition and other instructional fees charged by the qualified school and the cost of textbooks, workbooks, curricula, and other written materials used primarily for academic instruction.

"Total combined federal adjusted gross income" means the sum of the federal adjusted gross incomes for married taxpayers and, for an individual, such person's federal adjusted gross income.

§ 58.1-339.12. Tax credit for certain qualifying educational expenses.

A. For taxable years beginning on and after January 1, 2004, a taxpayer shall be allowed a refundable credit against any tax imposed pursuant to § 58.1-320 for qualifying educational expenses during the taxable year on behalf of each child of the taxpayer who (i) was eligible to be enrolled in a public school free of charge pursuant to § 22.1-3; (ii) qualifies as the taxpayer's dependent for federal income tax purposes; (iii) was a student at a qualified school in grades kindergarten through 12 during the taxable year; and (iv) does not attend a free public school during the semester or other portion of the school year for which such qualifying educational expenses were paid.

B. For taxable years beginning on and after January 1, 2004, the amount of the refundable credit for qualifying educational expenses paid shall be, on a per child basis, the lesser of the qualifying educational expenses paid during the taxable year for such child or $1,000.

C. Only those taxpayers with a total combined federal adjusted gross income (excluding combat pay for certain members of the Armed Forces of the United States as provided in § 112 of the Internal Revenue Code as may be amended), not in excess of 200 percent of the poverty guideline amount corresponding to a household of an equal number of persons as listed in the most recent poverty guidelines for the taxable year, may use the credit provided under this article.

D. Amounts claimed under this section shall not also be claimed as an itemized deduction when computing the taxpayer's liability for taxes under § 58.1-320.

§ 58.1-339.13. Forms; regulations.

A. The Department of Taxation is authorized to require a taxpayer to submit with the tax return copies of such receipts or similar financial documentation as is necessary to confirm the taxpayer's claim of the credit.

B. The Department of Taxation shall promulgate regulations required to implement this article. The regulations shall (i) modify the state individual tax forms, directions, and worksheets to provide a convenient way for taxpayers to claim a credit under this article, and (ii) provide a format for a standardized receipt to be issued by qualified schools at the conclusion of a student's period of instruction for which qualifying educational expenses have been paid, including the date of the receipt, the dates of the student's enrollment for which expenses are being paid, the name of the person paying the expense, the total expenses, the portion of the amount paid toward qualifying educational expenses, the name of the qualified school, and the printed name and signature of the agent issuing the receipt on behalf of the qualified school.

C. Regardless of what documentation the Department of Taxation may require for purposes of allowing credit for payments of qualifying educational expenses, no school or other organization shall be required to provide such documentation or otherwise act to facilitate taxpayers' access to credits under this article, except that qualified schools may be required to fulfill a prior agreement to a taxpayer to provide such information.

§ 58.1-339.14. Limitation on regulations.

Eligibility of a school or other educational program to be considered a qualified school under this article shall not be conditioned on a school's compliance with any state law or regulation not applicable to all private schools in the Commonwealth, with the exception of the financial documentation requirements authorized by § 58.1-339.13.

The credits authorized by this article shall not result in any additional regulation of public or nonpublic schools or taxpayers' decisions about the education of their dependent children, except to the minimal extent necessary to provide for the prevention of fraud and the efficient administration of the credits.

§ 58.1-339.15.

Every child for which credit is taken under this article shall be counted in the average daily membership of the locality in which the child resides for purposes of funding for public education.

SEN. O'BRIEN

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5. That (i) the provisions of this act amending §§ 33.1-12, 33.1-23.03:1, 33.1-23.03:8, 33.1-418, 33.1-439, 46.2-694, 46.2-697, 46.2-698, 46.2-700, 58.1-2217, 58.1-2249, 58.1-2289, 58.1-2402, 58.1-2425, 58.1-2701, and 58.1-2706 and adding §§ 46.2-702.1 and 58.1-2288.1; and (ii) the third and fourth enactments of this act shall only become effective, and on January 1, 2007, if an amendment to the Virginia constitution providing that all proceeds of the Transportation Trust Fund shall be used only for purposes of constructing, improving, and maintaining the roads embraced in the systems of state highways for the Commonwealth and its localities and furthering the interests of the Commonwealth in the areas of highways, public transportation, railways, seaports, and airports is approved by a majority of those voting at the election in November 2006.

SEN. RERRAS

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$40,000

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$100,000

SEN. RERRAS

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$64,000

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$140,000

SEN. RERRAS

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$64,000

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$140,000

SEN. RERRAS

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$64,000

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$140,000

SEN. MIMS (WITHDRAWN)

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or after January 1, 1990, but before January 1, 2004;

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after January 1, 1990.

SEN. MIMS (WITHDRAWN)

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all of lines 748 through 753

SEN. MIMS

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after January 1, 1990.