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ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2013 SESSION
Chairman: Harry R. Purkey
Clerk: Susan Armentrout
Staff: David Rosenberg, Mark Vucci
Date of Meeting: January 30, 2013
Time and Place: 1 1/2 Hr. After Adjournment, House Room D, GAB
Patron: Marshall, R.G.
Income tax. Deconforms Virginia income tax laws from two provisions of the Patient Protection and Affordable Care Act that otherwise would increase the state income tax.
Patron: Ware, R.L.
Land preservation tax credit; unissued tax credits. Provides that, beginning with calendar year 2013, if the maximum amount of land preservation tax credits have not been issued by the Department of Taxation for the calendar year, then the Comptroller would distribute from the general fund an amount equal to 80 percent of the unissued credits to the Virginia Land Conservation Fund, an amount equal to 10 percent to the Civil War Site Preservation Fund, and an amount equal to 10 percent to the Virginia Farmland Preservation Fund. For purposes of the distributions, the Department would provide a written certificate of the amount of the unissued tax credits to the Comptroller by March 15 of the following calendar year, and the Comptroller would make the distributions within 60 days of receiving the certificate.
Patron: Stolle
Additional state sales and use tax in the Hampton Roads Planning District; referendum. Provides for an additional one percent sales and use tax in the counties and cities located in the Hampton Roads Planning District, with the additional revenues generated by the tax to be used for regional transportation projects. The tax would become effective on January 1, 2014, and only if approved by a majority of the voters in the Planning District at the November 2013 election.
Patron: Kilgore
Local gas severance taxes. Establishes fair market value for purposes of the local gas severance taxes by defining fair market value as the gross receipts from the first sale of gas to a nonrelated party less reasonable, actual expenses including the costs of moving and processing the gas, depreciation, compression, marketing, overhead, maintenance, processing, transportation, property taxes, and return on investment. The bill moves the local gas severance taxes out of Chapter 37 of Title 58.1, which sets forth local license tax laws.
The one percent local gas severance taxes would be applied to the fair market value of the gas at the time it is produced at the wellhead within the county or city.
Patron: Greason
First-time home buyer savings account. Establishes beginning in 2013 first-time home buyer savings accounts that accrue tax-free income and that are to be used for saving funds for the purchase of homes by first-time home buyers. Funds in the account, including any income, would be exempt from individual income tax so long as withdrawals from the account are used for the down payment and allowable closing costs (eligible costs) for the purchase of a home by a first-time home buyer. Funds in the account would be required to be used for eligible costs within the 10-year period following the year in which the account was established.
Any resident of the Commonwealth would be allowed to maintain and make contributions to his first-time home buyer savings account. Only cash contributions could be made to the account. In 2013 an account holder would be allowed an individual income tax deduction equal to the amount the person contributed to his account, but not to exceed $13,000 per account. In 2014 and thereafter, the $13,000 maximum deduction per account would be increased annually by the same amount that the federal annual exclusion for gifts increases for the year. Capital gains, interest income, or other income earned with regard to funds contained in the account would be excluded from income in computing Virginia individual income tax.
However, if funds are withdrawn from the account for purposes other than to pay eligible costs, a penalty of 10 percent of the amount withdrawn would be imposed. In addition, the amount so withdrawn would be subject to individual income tax. No penalty or income tax would be imposed if the withdrawal is (i) because of the death or disability of the account beneficiary or (ii) a disbursement of assets pursuant to a filing for protection under federal bankruptcy laws.
If funds remain in the account at the end of the 10-year period, a penalty of 10 percent of the value of the funds remaining in the account would be imposed. In addition, individual income tax would be imposed on the value of the funds remaining in the account.
Patron: Massie
Motor vehicle rental tax; exclusions from the tax. Provides exclusions from the gross rental proceeds upon which the motor vehicle rental tax is imposed. The exclusions include cash discounts taken on a rental contract; finance, carrying, and other service charges; charges for motor fuels; charges for optional accidental death insurance; and other specified exclusions.
Patron: Kilgore
Local coal severance taxes. Establishes gross income for purposes of the local coal severance taxes by providing that (i) no exclusions from gross income are allowed for rents and royalty payments and (ii) any value added by processing or transportation taking place in another locality is excluded from gross income. The bill establishes a reduced gross income tax of one-half of one percent for small mines. The bill moves the local coal severance taxes out of Chapter 37 of Title 58.1, which sets forth local license tax laws. The local coal severance taxes would be applied to the gross income from mining of persons severing coal within the county or city.
Patron: Peace
Cigarette taxes; certain bond or irrevocable letter of credit requirements. Provides that the bond or irrevocable letter of credit required to be filed by a wholesale dealer to obtain cigarette tax stamps without payment of the cigarette tax be in a face amount determined by the Tax Commissioner to cover possible losses from nonpayment of the tax, but not to exceed two times the anticipated average monthly amount of purchases of cigarette tax stamps by the wholesale dealer. Under current law, the face amount of the bond or irrevocable letter of credit that is required to be filed is fixed at approximately two times the anticipated average monthly amount of purchases of cigarette tax stamps by the wholesale dealer.
Patron: Howell, W.J.
Revenues and appropriations of the Commonwealth. Makes several changes to the revenues collected by the Commonwealth, and the distribution of such revenues, as follows:
The bill raises the registration fees for vehicles and trailers and designates these increased revenues for the Commonwealth Mass Transit Fund and the Intercity Passenger Rail Operating and Capital Fund.
The bill raises the state sales and use tax from 4% to 4.8% and designates the increased revenues for the Commonwealth Transportation Fund.
The bill establishes procedures for the collection of the state sales and use tax from remote sellers for sales made in the Commonwealth, contingent upon the federal government passing legislation authorizing such collection. In the event that such revenues are collected, a portion of the revenues will be allocated to the localities with a stipulation that some of the funds be used by the locality for transportation needs and a portion of the revenues will be deposited in the Transportation Trust Fund.
The bill eliminates the statewide taxation of gasoline and blended fuel containing gasoline under the Virginia Fuels Act but leaves the current tax in place for other types of motor fuels.
The bill raises the annual license fee for electric vehicles from $50 to $100 and imposes the fee on hybrid electric vehicles and alternative fuel vehicles.
The bill repeals the application of the local sales and use tax to the sale of certain fuels used for domestic consumption, and replaces the revenue for the localities that imposed the sales and use tax with a portion of the new revenues generated by the bill.
The bill also makes several technical changes related to the administration of these provisions.
The provisions of the bill are effective July 1, 2013, except that the changes in the distribution of Fuels Act revenues related to the repeal of the tax on gasoline is effective July 1, 2014.
Patron: Head
Local taxes; interest on refunds and delinquent taxes. Authorizes localities not to pay interest on the refund of local taxes when the refund is due to errors made by the taxpayer.
Patron: Pogge
Sales and use tax exemption; service charges of photographers and videographers. Provides a sales and use tax exemption for separately stated service charges of photographers and videographers.
Patron: Cole
Real property tax; sale of sole dwelling for delinquent taxes. Prohibits localities from instituting a judicial sale for delinquent taxes on real property that is the sole dwelling of the taxpayer.
Patron: Anderson
Real property tax; boards of equalization. Modifies several provisions governing boards of equalization including (i) adding new qualifications for membership of certain boards; (ii) authorizing boards to receive complaints electronically as long as taxpayers may also file complaints on paper forms; (iii) prohibiting a board to deny relief based on a lack of information from the taxpayer as long as certain specified information is provided; (iv) providing procedures by which a taxpayer may appoint a representative; and (v) providing procedures to be followed before a board may increase assessments on certain types of property.
Patron: Johnson
Transient occupancy tax; Dickenson County. Adds Dickenson County to the list of counties that may impose a transient occupancy tax not to exceed five percent, rather than the two percent rate available to all counties. Any revenue attributable to any rate over two percent shall be spent solely for tourism and travel purposes.
Patron: Minchew
Real property tax; special valuation for land preservation. Makes it optional for localities to impose roll-back taxes when the owner of real property that qualifies for special land use valuation has the property rezoned for a more intensive use. Under current law, imposition of such taxes is mandatory.
Patron: Comstock
Tangible personal property tax; computer equipment and peripherals used in data centers. Creates a separate classification, for purposes of permitting localities to set a lower personal property tax rate, on computer equipment and peripherals used in a data center.
Patron: Kilgore
Sales and use tax revenue dedicated for public facility in Town of Wise. Adds the Town of Wise to the list of localities in which a public facility may be constructed or expanded, with the sales and use tax revenue generated in the public facility dedicated to the payment of bonds issued to pay for such construction or expansion.
Patron: O'Quinn
Entitlement to certain sales and use tax revenues; City of Bristol. Provides that payments of sales and use tax revenue generated on the premises of a public facility located in the City of Bristol used to pay bonds issued to construct the public facility shall begin upon certification by the governing body of the municipality that a business license has been issued to an occupant of the public facility, even though the public facility has not been completed.
Patron: Orrock
Personal property tax; advertising signs. Specifies that outdoor advertising signs are included in the class of tangible personal property used in a trade or business, and requires localities to tax such signs as personal property, not as real property. The bill also prohibits such signs or income generated by such signs to be considered in assessing the value of real property. The bill states that an emergency exists and it is in force from its passage. The bill applies to tax years beginning on or after January 1, 2013.
EMERGENCY
Patron: May
Local tax bills. Permits treasurers to convey, with the consent of the taxpayer, any tax bill by permitting the taxpayer to access his tax bill online from a database on the treasurer's website.
Patron: Cline
Confidentiality of tax information. Authorizes the Tax Commissioner to provide the Commissioner of Agriculture and Consumer Services with tax information necessary to identify taxpayers who are subject to Board of Agriculture and Consumer Services regulations.
Patron: Brink
Transient occupancy tax; Arlington County. Reinstates the authority of Arlington County, which expired pursuant to a January 1, 2012, sunset date, to impose an additional transient occupancy tax at a rate not to exceed one-fourth of one percent. The revenues from the tax shall be spent solely for the purpose of promoting tourism and business travel in the county.
Patron: Villanueva
City of Virginia Beach; sports or entertainment arena. Gives the City of Virginia Beach rights similar to those that had been given in the past to the Hampton Roads Sports Facility Authority in constructing an arena for professional sports teams or for conferences and entertainment events. Among those rights is the authority to (i) issue bonds to construct an arena, and (ii) receive state income tax and sales tax revenue that is attributable to an arena, to repay the bonds.
Patron: McClellan
Investments that qualify for tax credits; qualified website. Specifies that if an investment that is otherwise eligible for a tax credit under the Code of Virginia is made through a website that offers general solicitation or "crowdfunding," such website must be registered with the Department of Taxation. In order to register, the website shall meet all federal requirements for such sites and shall disseminate certain information to potential investors concerning the entities seeking investments through the website. The bill directs the Department to develop guidelines concerning the registration, and to post on its website a list of registered websites.
Patron: Massie
Tax credits for donations to nonprofits providing assistance to low-income families. Makes several changes to the Neighborhood Assistance Act Tax Credit and Education Improvement Scholarships Tax Credits program including (i) allowing tax credits for donations of marketable securities under the Education Improvement Scholarships Tax Credits program, (ii) changing reporting requirements to the Department of Education, changing the time frame for scholarship foundations to disburse moneys for scholarships, and changing the penalties for failing to make such reports and disbursements under the Education Improvement Scholarships Tax Credits program,(iii) for both programs, establishing $125,000 as the maximum annual amount of donations by an individual for which tax credits may be issued, and (iv) for both programs, extending the expiration date through the 2027 taxable year. The bill also makes several other technical changes.
Patron: Jones
Long-term health care insurance tax credit. Repeals the long-term health care insurance tax credit for taxable years beginning on or after January 1, 2014. The bill would not repeal the income tax deduction for long-term health care insurance premiums paid by an individual.