VIRGINIA LAW PORTAL

• Code of Virginia
• Virginia Administrative Code
• Constitution of Virginia
• Charters
• Authorities
• Compacts
• Uncodified Acts
• RIS Users (account required)

SEARCHABLE DATABASES

• Bills & Resolutions
  session legislation
• Bill Summaries
  session summaries
• Reports to the General Assembly
  House and Senate documents
• Legislative Liaisons
  State agency contacts

ACROSS SESSIONS

• Subject Index: Since 1995
• Bills & Resolutions: Since 1994
• Summaries: Since 1994

Developed and maintained by the Division of Legislative Automated Systems.

1996 SESSION

• history | hilite | pdf | print version

961279386
HOUSE BILL NO. 1260 Offered January 22, 1996 A BILL to amend the Code of Virginia by adding a section numbered 58.1-322.3, relating to a capital gains exclusion from the Virginia income tax. ---------- Patron-- O'Brien ---------- Referred to Committee on Finance ----------

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 58.1-322.3 as follows:

§ 58.1-322.3. Rollover of long-term capital gain.

A. For taxable years beginning on and after January 1, 1996, but before January 1, 2001, if property held for the holding periods specified in subsection C is sold by an individual or corporate taxpayer and, within a twelve-month period after such sale, qualified property is purchased by such taxpayer, gain from the sale, not to exceed $25,000, shall not be recognized within the limitations provided in subsection C.

"Qualified property" means real property, plants and equipment located in Virginia and firms conducting substantial business in Virginia.

B. For purposes of this section:

1. An exchange by the individual or corporate taxpayer of qualified property for other qualified property shall be treated as a sale of such property, and the acquisition of qualified property on the exchange of qualified property shall be treated as a purchase of such qualified property.

2. If an individual or corporate taxpayer, during the twelve-month period described in subsection A, enters into a binding contract for the purchase of qualified property but does not settle on the contract before the expiration of such twelve-month period, such taxpayer shall be deemed to have purchased qualified property as required in subsection A.

C. The percent of exemption for such long-term capital gain shall be based on the following holding periods:

     Holding period                       Percent exempt

     Three years but less than four               60%
     Four years but less than five                80%
     Five years or more                          100%