SEARCH SITE

Search FAQs

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

1998 SPECIAL SESSION I

  • | print version

HB 4005 Local Relief Act of 1998; tang. per. prop. tax & school construction.

Introduced by: John H. Rust, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY:

Local Relief Act of 1998; tangible personal property tax and school construction. Requires the Commonwealth to pay, directly to taxpayers for tax year 1998 and to localities for tax years 1999 and thereafter, a portion of the tangible personal property tax levied on any passenger car, motorcycle, and pickup or panel truck that is owned or leased by a natural person and used for nonbusiness purposes. Reimbursements for tax year 1998 will be 12.5 percent of the tax on the first $20,000 of value of the qualifying vehicle, based on the tax rate and assessment practices in effect on August 1, 1997. For tax year 1999, the payments to localities will be 27.5 percent of the reimbursable amount. For 2000, the amount will be 47.5 percent of the reimbursable amount; for 2001, 70 percent of the reimbursable amount; and for 2002 and thereafter, 100 percent of the reimbursable amount. The level of payments will not increase under this schedule if (i) actual general fund revenues for a fiscal year are less than projected general fund revenues by one percent or more; (ii) forecasted general fund revenue growth is less than five percent compared to the preceding fiscal year; or (iii) general fund revenues available for appropriation for either year of a biennial budget are projected to be less than the general funds appropriated for such years. The cost of the program is capped at 8.5 percent of general fund revenues in fiscal year 2000-2001 or thereafter. If the program cost is expected to exceed this limitation, the level of payments will be reduced proportionately. Personal property tax bills for tax year 1999 and thereafter shall state the amount that the Commonwealth will reimburse to the locality, and taxpayers will receive a deduction for this amount. The measure also revises the existing school construction grants program to (i) include renovations and retrofitting of public school buildings (ii) provide for the apportionment and disbursement of the funds with two-thirds of the available funds being apportioned among school divisions on a pro rata basis according to average daily membership adjusted by the locality's composite index and one-third of the grant funds allocated equally to each school division. The school construction grants program will be funded in part from unclaimed lottery prizes and increasing percentages of net lottery proceeds.


FULL TEXT

AMENDMENTS

HISTORY