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ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
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Developed and maintained by the Division of Legislative Automated Systems.
2013 SESSION
Chairman: Walter A. Stosch
Clerk: Patty Lung, Cheryl Law
Staff: Nicole Brenner, L. Wallmeyer
Date of Meeting: February 12, 2013
Time and Place: Tuesday, 9:00 a.m. - Senate Room B
Patron: Ramadan
Tax credit for employees who telework. Creates a $250 income tax credit for employees who telework a minimum of 20 hours per week during at least 45 weeks of the taxable year. The employee would apply for tax credit to the Department of Taxation. The Department would determine whether the applicant has met the statutory requirements for the tax credit and would issue tax credits to those employees meeting such requirements. Tax credits would be issued on a first-come, first-served basis. The Department would not be allowed to issue more than $1 million in tax credits in any fiscal year. Any unused credit would not be allowed to be carried forward or carried back against the individual's tax liability. The credit would be available for taxable years beginning on or after January 1, 2013, but before January 1, 2018.
Patron: Ware, R.L.
Land preservation tax credit; unissued tax credits. Provides that, beginning with calendar year 2012, if the maximum amount of land preservation tax credits have not been issued by the Department of Taxation for the calendar year by May 1 of the following year, then the Department of Taxation shall certify to the Governor by July 15 the difference between the amount of credits issued and the maximum amount of credits allowed for the year. In that same year of the written certification, the bill would require the Governor to include in the Budget Bill or in his amendments to the general appropriation act a recommended appropriation from the general fund in an amount equal to the difference certified to him to be appropriated as follows: 80 percent of the unissued credits to the Virginia Land Conservation Fund, 10 percent to the Civil War Site Preservation Fund, and 10 percent to the Virginia Farmland Preservation Fund.
Patron: Cole
Real property tax; sale of sole dwelling for delinquent taxes. Requires that, prior to initiating judicial proceedings to sell real property because of delinquent taxes, the locality must notify the taxpayer that he has the right to request that the treasurer enter into a payment schedule with him to pay the delinquent taxes.
Patron: Putney
Budget Bill. Amending Chapter 3, 2012 Special Session I Acts of Assembly.
Patron: Bulova
Virginia Retirement System; certain local employees. Makes technical changes necessary to carry out the purpose of Chapter 811 of the 2012 Acts of Assembly, permitting localities to exempt firefighters, emergency medical technicians, and law-enforcement officers from the higher age and service requirements for normal and early retirement applicable to employees hired on or after July 1, 2010.
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: Iaquinto
Real property tax; increases in assessed value for prior years. Reduces the period of time in which the assessed value of real property may be increased for prior years from the three preceding tax years to the preceding tax year.
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: Watson
Income tax credit; donation of machinery and equipment to certain schools. Establishes an individual and corporate income tax credit beginning January 1, 2013, for business donations of new machinery and equipment, purchased within the last 12 months by the business, to Virginia's community colleges and vocational schools. The machinery and equipment are to be principally used in Virginia in teaching or training students of the donee community college or vocational school. The credit would equal 20 percent of the purchase price paid by the business for the machinery and equipment. However, a business would not be allowed more than an aggregate of $5,000 of tax credit in any year for such donations. The Department of Taxation would administer the tax credit program and would be prohibited from issuing more than $1 million in tax credits in any fiscal year of the Commonwealth. Any unused credit would be available to be carried forward for five years. The credit would sunset on December 31, 2017.
Patron: Kilgore
Local gas severance taxes. Makes technical amendments that provide a period of time in which natural gas companies may appeal a local gas severance tax assessment made on or after January 1, 2014, for tax years 2014, 2013, 2012, or 2011. In 2012, the General Assembly passed legislation delaying the time period in which natural gas companies could appeal gas severance tax assessments and suspending the collection of gas severance tax assessments. The bill creates a time period in which natural gas companies may appeal such assessments.
Patron: Gilbert
Tax-paid contraband cigarettes; penalties. Increases the penalty for possession with intent to distribute more than 25 but fewer than 500 cartons of tax-paid cigarettes by a person other than an authorized holder from a Class 2 to a Class 1 misdemeanor for a first offense and from a Class 1 misdemeanor to a Class 6 felony for a second or subsequent offense. The bill also imposes a Class 6 felony for possession, with intent to distribute, of 500 or more cartons of tax-paid cigarettes by a person other than an authorized holder and a Class 5 felony for a second or subsequent offense.
Patron: Kilgore
Individual accident and sickness insurance; open enrollment program. Repeals the requirement that a health insurer that is, or is successor to, a health services plan provide an open enrollment program for individual accident and sickness contracts. Under the open enrollment program, an individual may purchase a product at any time during the year, with the caveat that the individual serve a 12-month waiting period before services are covered for any preexisting condition. The requirement for such an open enrollment program is inconsistent with guaranteed issue provisions of the federal Patient Protection and Affordable Care Act that prohibit waiting periods for coverage for preexisting conditions and that provide for limited open enrollment periods. The measure also eliminates certain provisions that set a tax rate of 0.75 percent on premiums from policies sold under the open enrollment program, and for taxable years 2013 and thereafter the tax rate will be 2.25 percent. The measure will become effective January 1, 2014.
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: Ware, O.
Unstamped cigarettes; sale, transport, possession, etc.; penalties. Provides that it is a Class 6 felony to sell, purchase, transport, receive, or possess 500 or more packages of unstamped cigarettes; under current law, the threshold is 3,000 or more packages. The Class 2 misdemeanor threshold is reduced from less than 3,000 to less than 500 packages.
Patron: Purkey
Virginia port volume increase tax credit. Extends the tax credit beginning in 2013 to growers or producers of (i) wheat, grains, fruits, nuts, crops; (ii) tobacco, forestry, nursery, or floral products; or (iii) seafood, meat, dairy, or poultry products. The bill also eliminates distributors of these goods from being eligible for the tax credit. Under current law, manufacturers and distributors of manufactured goods that ship at least 75 net tons of noncontainerized cargo or 10 loaded 20-foot equivalent units (TEUs) through Virginia port facilities during a calendar year are eligible for an income tax credit if their volume of shipments through such facilities increases by at least five percent over a designated base year volume. The tax credit equals $50 for each TEU above the base year volume shipped through a Virginia port facility.
Patron: Orrock
Personal property tax; advertising signs. Provides that outdoor advertising signs constitute a separae class of personal property for purposes of assessment, 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: 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. The bill limits the amount of principal that can be contributed to any account to $50,000. Persons would be allowed to contribute only cash or marketable securities to a first-time home buyer savings account. 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, (ii) a disbursement of assets pursuant to a filing for protection under federal bankruptcy laws, or (iii) a transfer of assets between first-time home buyer savings accounts.
Patron: McClellan
Online investments; eligible for state tax credits. Specifies that investments transacted via an online general solicitation, online broker, or a funding portal shall be eligible for state tax credits, so long as the investment otherwise meets all requirements for earning the particular tax credit.
Patron: Yancey
Worker retraining tax credit; increase in credit amount. Increases the worker retraining tax credit for worker retraining courses taken by employees at private schools from a maximum of $100 per year per employee to $200 per year per employee or $300 per year per employee if the worker retraining includes retraining in a STEM or STEAM (science, technology, engineering, mathematics, or applied mathematics) discipline, including but not limited to a health care related discipline.
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: 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 civil 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.
Patron: Peace
Sales and use tax exemption; property used for harvesting forest products. Changes the sales and use tax exemption related to harvesting forest products from property "necessary" for such harvesting, to property "used" for such harvesting.
Patron: Cox, M.K.
Teacher performance; Strategic Compensation Grant Initiative created. Establishes the Strategic Compensation Grant Initiative and Fund, which provides that local school divisions may submit proposals to the Board of Education to receive grants that may be used as incentives to improve teacher and school performance. School divisions must include in their proposals a compensation model and designate groups or types of teachers to receive awarded funds. The bill sets forth eligibility requirements for teachers receiving funds.
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: Tata
School boards; releases from state regulations. Requires any school board that has requested a release from certain state regulations to provide a description of how the release from the state regulation is designed to increase the quality of instruction and improve the achievement of students in the affected school or schools. The bill permits the Board to grant and renew such releases for a period of up to five years. The bill also permits the Board of Education to grant local school boards waivers of specific staffing requirements that would permit the school board to assign instructional personnel to the schools with the greatest needs, provided that the local school board provides a description of how the waiver is designed to increase the quality of instruction, and improve the achievement of students in the affected school or schools.
Patron: Kilgore
Local coal severance taxes. Establishes gross receipts for purposes of the local coal severance tax by providing that the only deduction allowed from gross receipts is for non-local transportation and processing costs of coal. The bill establishes a one percent tax on the gross receipts from coal severed from the earth by coal producers, except that the gross receipts tax on coal from mines that sell less than 10,000 tons of coal per month is three-quarters of one percent. The bill also moves the local coal severance taxes out of Chapter 37 of Title 58.1, which sets forth local license tax laws.
EMERGENCY
Patron: Purkey
Individual income tax deductions; life, medical, and dental insurance premiums. Provides that beginning January 1, 2013, an individual age 66 or older with earned income of at least $20,000 for the year and federal adjusted gross income not in excess of $30,000 for the year is allowed to deduct the amount he pays annually for (i) a prepaid funeral insurance policy that covers him or (ii) medical or dental insurance premiums for any person for whom individual tax filers may claim a deduction for such premiums under federal income tax laws.
Patron: Lingamfelter
Capital outlay plan. Establishes a revised six-year capital outlay plan for projects to be funded entirely or partially from general fund-supported resources.
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: Rush
Virginia Military Survivors and Dependents Education Fund; amount of financial assistance. Specifies that qualified survivors and dependents are eligible for financial assistance from the Virginia Military Survivors and Dependents Education Fund in an amount up to $2,000 or as provided in the appropriation act for board and room charges, books and supplies, and other expenses at any public institution of higher education or other public accredited postsecondary institution granting a degree, diploma, or certificate in the Commonwealth.
Patron: Pogge
Sales and use tax exemption; labor or services related to rental property. Clarifies that the sales and use tax exemption for separately stated charges for installing personal property sold, includes property that is rented.
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. The bill has a sunset date of July 1, 2016.
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 eliminates the tax on motor fuels, except for diesel fuel. The bill provides for a refund of taxes paid on diesel fuel for vehicles having a gross vehicle weight rating of 10,000 pounds or less. 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 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 bill prohibits the Department of Transportation from expending any revenues on any program or project that implements tolling on Interstate 95 south of the City of Fredericksburg.
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.