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2004 SESSION

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SB 467 Tax reform; changes in provisions for income tax, sale & use tax, cig. tax, pers. property tax, etc.

Introduced by: John H. Chichester | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Taxation; A Commonwealth of Opportunity Plan. Sets out the governor's tax plan which would (i) lower the income tax for most Virginians by increasing the personal exemption amount from $800 to $1,000, increasing the standard deduction amount to $4,000 for singles and married filing separately and to $8,000 for married filing jointly, and raising the filing thresholds to $7,000 and $14,000, (ii) reduce the food tax by 1.5 cents and add 1 cent to the sales and use tax, (iii) tighten certain corporate income tax provisions, (iv) increase Virginia's state cigarette tax to 25 cents per pack to pay for health care needs while giving counties the authority to levy the tax up to a cap, (v) complete the plan to end the car tax on personal vehicles valued at $20,000 or less, (vi) eliminate the estate tax for certain working farms and family-owned businesses, (vii) end the accelerated sales tax collection for retailers, (viii) provide incentives for small and mid-size businesses to invest, and (ix) streamline collection of the state sales tax.

The bill also amends 58.1-3833 by authorizing a local meals tax of up to four percent in counties. This section already reads that the local meals tax in counties shall not exceed four percent. However, the section, as published, is incorrect. It includes language setting the local meals tax rate, which amendatory language was dependent upon passage of the 2002 transportation referendums (See Chapter 853 of the Acts of Assembly of 2002). As the referendums did not pass, such amendatory language never became law. The change to 58.1-3833 is technical in nature. It sets out the Code section as it should have been published and amends the section to clarify current law that authorizes counties to impose a local meals tax up to four percent.


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