Tax Type
General Provisions
Description
1974 Legislative Digest
Topic
Reports
Date Issued
07-01-1974
LEGISLATIVE DIGEST
VIRGINIA DEPARTMENT OF TAXATION
Introduction
The 1974 session of the General Assembly passed a number of bills affecting state and local taxation. For each bill, accompanied by its chapter number, a brief explanation is given. The effective date for each one is July 1, 1974, unless otherwise noted.
A number of bills were also carried over to the 1975 session of the General Assembly. Since all of these bills will require further action, they are included in a separate section. After the number of each bill carried over, the committee that must now take action on it is given.
House Bills
HOUSE BILL NO. 5 (Chapter 133)
This bill amends § 58-812 and raises to $500 from $100 the increase in the assessable value of real estate before the local commissioner of revenue would be required to reassess any building or enclosure. This act is effective for taxable years beginning on and after January 1, 1975.
HOUSE BILL NO. 14 (Chapter 593)
This bill adds a new § 58-66.1 and requires that, whenever the value of a decedent's real, personal, or mixed property at the time of death exceeds $1000, a return be filed with the clerk of court when a will is offered for probate or administration is sought. The returns will be filed with the clerks of courts and will set forth the assessed value of the decedent's real property and the estimated value of the decedent's personal property. A return for probate tax will be subject to the secrecy provisions of § 58-46.
HOUSE BILL NO. 85 (Chapter 134)
This bill amends § 58-46 to permit the State Tax Commissioner, upon receiving a written request, to disclose confidential tax information to collectors of town taxes.
HOUSE BILL NO. 184 (Chapter 136)
This bill amends § 58-381.1 to allow any person or organization to operate a show or sale for one year by taking out a single license. Such licenses cannot be prorated or issued on a quarterly basis. The full year's tax is due regardless of when the license is issued. The amount of the tax remains at $200 for shows and sales of nonantique items and $30 for shows and sales of antique items.
HOUSE BILL NO. 272 (Chapter 281)
This bill amends § 58-151.065 by adding the words: "The Department of Taxation shall not by any means whatsoever, either directly or indirectly, in its bulletins, instructions, publications or otherwise, request, promote or solicit, in any local jurisdiction, unless requested by the commissioner of the revenue or assessing officer thereof on or before September one of each year, the filing of such State income tax return with the Department of Taxation."
HOUSE BILL NO. 284 (Chapter 352)
This bill amends § 58-797, which requires clerks of courts to make out lists of deeds and transmit them to the commissioners of revenue and Department of Taxation. The amendment requires the clerks to transmit the names of the grantor and grantee, striking out the language "if known." See Senate Bill No. 268 that amends the same section.
HOUSE BILL NO. 309 (Chapter 621)
This bill amends § 46.1-65 to require that local motor vehicle license fees be paid to the locality wherein the vehicle is normally garaged, stored, or parked.
HOUSE BILL NO. 345 (Chapter 448)
This bill amends § 58-456 and doubles the annual state franchise taxes on domestic corporations. The tax is based on the authorized maximum capital stock and is administered by the State Corporation Commission.
HOUSE BILL NO. 346 (Chapter 159)
This bill amends § 58-444 and doubles the entrance fees for foreign corporations. It is not an annual fee, but is levied when a foreign corporation receives a certificate of authority to do business in Virginia or when the corporation's charter is amended.
HOUSE BILL NO. 427 (Chapter 510)
This bill amends § 58-834 and provides that any person who is domiciled in another state and whose motor vehicle is normally garaged, stored, or parked in Virginia will be exempt from local personal property taxation in Virginia provided that the person can prove that he paid a personal property tax on the same vehicle in the state in which he is domiciled. If a person who is domiciled in another state paid a personal property tax on a motor vehicle to any city or county in this state after January 1, 1973, and also paid such a tax on the same vehicle in the state in which he is domiciled, the person may apply to the city or county in Virginia for a refund of the full amount of the tax paid to that city or county.
HOUSE BILL NO. 450 (Chapter 78)
This bill has not yet been codified. It exempts from the sales tax medals sold by authority of or on behalf of the Virginia Independence Bicentennial Commission. The act is effective July 1, 1974, and expires at midnight, December 31, 1983.
HOUSE BILL NO. 558 (Chapter 460)
This bill amends § 4-108(d1) to permit the State Tax Commissioner to waive the surety bond where a brewery, bottler, or wholesaler has previously demonstrated his financial responsibility.
HOUSE BILL NO. 595 (Chapter 636)
This bill amends § 58-151.13(d) dealing with the penalty for the failure of an employer to remit the withheld income taxes of an employee and interest in the case of an extension. The present penalty is 25 percent of the amount that should have been withheld and paid to the state. This bill amends the penalty to 5 percent for each month that the payment is delinquent up to a maximum of 25 percent. When the State Tax Commissioner grants an extension for filing a return, interest at the rate of 1 percent per month or fraction thereof is imposed if the extension exceeds 10 days. The present rate of interest is .5 percent per month.
HOUSE BILL NO. 596 (Chapter 362)
This bill amends § 58-1142 and changes from three years to two years the statute of limitations on refunds of erroneously assessed taxes, except those made by ordinance of the governing body, in which case the limitation has been increased to seven years. This bill contains an emergency clause and is effective April 4, 1974.
HOUSE BILL NO. 622 (Chapter 293)
This bill amends § 58-848 to permit counties, as well as cities and towns, to adjust the taxes due from public service corporations for a given year when the State Corporation Commission completes its assessment for that year. The bill also adds § 58-851.8 to authorize localities to change their levies on real estate, tangible personal property, and machinery and tools during a calendar year.
HOUSE BILL NO. 623 Chapter 294)
This bill amends § 58-851.6 and 58-851.7 permitting localities to levy taxes on real estate, tangible personal property, and machinery and tools on a fiscal year basis and change the tax date to July 1. The bill clarifies the procedure of changing to a fiscal year basis from a calendar year basis, by providing for the locality to have a short tax year running from January 1 to June 30. Public service corporations will still be taxed based on a January 1 tax day.
HOUSE BILL NO. 650 (Chapter 79)
This bill adds a new § 58-397.2 and provides for the payment of a single $.75 issuance fee instead of several when a person, firm, or corporation applies for licenses for coin-operated machines of the same description to be installed in one location. This act is effective as of January 1, 1975.
HOUSE BILL NO. 785 (Chapter 80)
This act amends § 58-979, which requires that delinquent tax lists shall conform to the facts as they exist on June 30 of each year. Real estate taxes will be delinquent for purposes of the delinquent lists if all taxes are not paid when due or, if the taxes are paid in installments, when the last installment is due. This bill codifies the Attorney General's opinion on the subject.
HOUSE BILL NO. 791 (Chapter 306)
This bill is not yet codified. It insures that the provisions of repealed §§ 58-1052 or 58-1091 on the validity of tax deeds are continued in effect.
HOUSE BILL NO. 848 (Chapter 656)
This bill adds a new § 58-769.3:1 to authorize James City County to establish a joint real estate assessment department with surrounding localities.
HOUSE BILL NO. 915 (Chapter 450)
This bill amends § 58-355 to include balloon vending machines in the category of coin-operated vending machines on which a $3 license tax is imposed. The previous tax was $25. This bill contains an emergency clause and is effective April 5, 1974.
HOUSE BILL NO. 926 (Chapter 659)
This bill amends § 64.1-57 (f1) to insure that no assets acquired from a retirement plan qualified under § 2039 (c) of the Internal Revenue Code can be used by an executor to pay taxes and other obligations of an estate. Such assets would be segregated and held separately until all claims against the estate have been satisfied.
HOUSE BILL NO. 956 (Chapter 309)
This bill amends § 58-847 to provide that interest on delinquent taxes may begin on the first day of the month following the month in which the taxes are due to be filed. Any penalty for late filing may be assessed beginning on the date that the first installment is unpaid.
Senate Bills
SENATE BILL NO. 1 (Chapter 25)
This bill adds a new § 58-218.1 to the Virginia gift tax law to conform transfers of real property between husband and wife to the federal gift tax treatment. It provides that a transfer of property from one spouse to both jointly with right of survivorship will be exempt from gift taxes, as will a transfer from both spouses to one spouse if the spouse who ultimately holds the property paid for all of it.
SENATE BILL NO. 57 (Chapter 682)
This bill amends § 58-151.013 (c) (3) (A) providing that the surviving spouse of all state and local officials including judges are entitled to exclude from adjusted gross income any retirement benefits received after January 1, 1974, to the same extent that such retirement income is exempt for the retiree.
§ 58-151.013 (c)(3)(C),(D), and (E) was deleted while § 58-151.013 (c)(3)(F) was added. The new section changes the retirement benefits exclusion for retired members of the armed forces, civil service, and private industry, and the surviving spouse of each as follows:
Old Exclusion New Exclusion (The maximum exclusion is reduced by the amount that adjusted gross income exceeds $12,000.)
(1) Retired Civil Service $2000 $3000
Surviving Spouse Employee $1000 $1500
(2) Retired Members of the $2000 $2000
Armed Forces Aged 60 and
over
Surviving Spouse $1000* $1500
* Under the old exclusion surviving spouses of members of the armed forces had to be age 60 or older in order to qualify.)
(3) Private Industry None $2000
Surviving Spouse None $1000
This act is effective for taxable years beginning on and after January 1, 1974.
SENATE BILL NO. 58 Chapter 367)
This bill adds to Title 9 a chapter numbered 23 consisting of sections numbered 9-146 through 9-148. It establishes the Revenue Resources and Economic Study Commission as a permanent body with a mandate to continue analysis of state and local fiscal matters.
SENATE BILL NO. 62 (Chapter 47)
This bill adds a new § 46.1-32.1 requiring the Division of Motor Vehicles to report the situs of any truck or trailer to the commissioner of revenue in each locality before issuing the registration or certificate of title. The motor vehicles and rolling stock of intrastate common carriers and public service corporations are exempted from this requirement.
SENATE BILL NO. 86 (Chapter 30)
This bill amends § 48-412 to provide that bonds, notes, and other evidence of debt of regulated investment companies and real estate investment trusts shall be exempt from the tax on capital. This act is effective for tax years beginning on and after January 1, 1974.
SENATE BILL NO. 106 (Chapter 425)
This bill amends § 58-1140.1 to change from 90 days to 60 days the amount of time allowed the department after the payment of tax or the last day prescribed by law for payment to refund the overpayment of any tax administered by the department, before interest begins to accrue. This act is effective for taxable years beginning on and after January 1, 1974.
SENATE BILL NO. 117 (Chapter 32)
This bill adds a new § 58-302.2 requiring that the contractor's license tax levied by localities be prorated on all orders and contracts covering more than one calendar year. This assures that the gross value of all orders and contracts is used only once in determining the basis for taxation.
SENATE BILL NO. 144 (Chapter 427)
This bill amends § 58-760.1, the section dealing with the exemption or deferral of taxes on the property of elderly persons. The maximum income allowable in order to qualify for relief is increased from $7500 to $10,000.
The first $4000 of income of an owner's relative living in the dwelling is exempt in this calculation instead of the present figure of $2500. The maximum net worth allowable for the owner and spouse if they are to qualify is increased from $20,000 to $35,000. The locality may specify lower figures if it chooses.
SENATE BILL NO. 145 (Chapter 177)
This bill amends § 58-441.27:1 to make the minimum penalty for failure to file a sales and/or use tax return applicable to the filing of a return without payment.
SENATE BILL NO. 146 (Chapter 146)
This bill amends § 58-151.072, the section dealing with refunds of overpayments, by striking out an interest provision that is no longer applicable and conflicts with the general interest provision in § 58-1140.1 which was enacted in 1973 and amended in 1974. The bill also amends § 58-151.073 to eliminate the payment of a penalty for the late filing of an income tax return when no tax is due.
This bill contains an emergency clause and applies to all income tax returns filed after January 1, 1973.
SENATE BILL NO. 147 (Chapter 179)
This bill amends § 58-792.01 which requires that landowners be sent notices when their real estate assessments are increased. It makes it clear that a notice must be sent when any increase is made, not just increases because of general reassessment. The requirements that the old value and the amount of the increase be shown are deleted. Finally, mortgage companies are required to contact the landowner if they receive the notice and if they know the address of the landowner.
SENATE BILL NO. 151 (Chapter 180)
This bill amends § 58-374 to require that a person, firm, or corporation be registered by the Virginia Collection Agency Board before the commissioner of revenue may issue a local license.
SENATE BILL NO. 156 (Chapter 118)
This bill amends § 64.1-189 to reduce the time permitted to disclaim a gift from 10 months to 6 months.
SENATE BILL NO. 183 (Chapter 33)
This bill amends § 58-769.8 to allow an individual who is an owner of an undivided interest in a parcel of land to apply for taxation according to use on behalf of himself and the other owners upon submitting an affidavit that such other owners are minors or cannot be located.
The bill further provides that an application need be resubmitted only when use or acreage previously approved changes. A locality, however, may require that an application be revalidated annually.
SENATE BILL NO. 185 (Chapter 186)
This bill amends § 58-155 to provide that if amounts paid to creditors of an estate are claimed as deductions for federal income tax purposes, such amounts would not be allowable deduction in computing state inheritance taxes. If amounts paid to creditors are deducted for federal income tax purposes, then those deductions would also be allowable for state income tax purposes since the state income tax law conforms to the federal law.
SENATE BILL NO. 186 (Chapter 34)
This bill amends § 58-769.6 to provide that localities adopting land-use value assessment ordinances must do so not later than June 30 of the year prior to the year the ordinance becomes effective. The bill also amends § 58-769.10 to require the commissioner of revenue or other assessing officer to compute and assess roll-back taxes rather than the treasurer. The taxes must then be paid to the treasurer within 30 days of assessment.
SENATE BILL NO. 220 (Chapter 469)
This bill amends § 58-12 and adds §§ 58-12.20 through 58-12.34. It removes from § 58-12 all mention of property which was not constitutionally exempt prior to the effective date of the new Constitution. It enacts a specific exemption under Article X, § 6 (a)(6) for all these categories of property except community clubs. The net effect of the bill is to legitimize the exemption of several types of property including property of churches used for charitable or educational purposes, property of the Boy Scouts and Girl Scouts, Hone Demonstration Clubs, 4-H Clubs, and incorporated alumni associations and foundations for educational purposes. In addition, some new exemptions are provided.
SENATE BILL NO. 233 (Chapter 192)
This bill amends § 58-443 to double the charter fees of domestic corporations other than domestic public service corporations.
SENATE BILL NO. 234 (Chapter 472)
This bill adds a new § 58-757.29 authorizing localities with a tobacco tax to enact an enforcement ordinance. The ordinance would permit the confiscation of cigarettes or other tobacco products being transported through a particular jurisdiction unless they are accompanied by a legitimate bill of lading. The vehicle transporting the products could also be confiscated. The ordinance would also permit the confiscation of any coin-operated machine in which unstamped cigarettes or cigarettes with bogus stamps are found.
SENATE BILL NO. 235 (Chapter 193)
This bill amends § 58-450 to double the annual registration fees for domestic and foreign corporations.
SENATE BILL NO. 237 (Chapter 320)
This bill amends § 58-151.032 by permitting a corporation in computing its Virginia tax to subtract from federal taxable income taxes paid to a foreign country by a subsidiary. This subtraction will prevent the taxation by Virginia of foreign taxes included in federal taxable income for the purpose of qualifying for the federal foreign tax credit. This bill is effective for taxable years beginning on and after January 1, 1973.
SENATE BILL NO. 263 (Chapter 431)
This bill adds a new § 58-685.27 to tax aircraft at 2 percent of their sales price. Exemptions are provided for governmental and public service aircraft to the same extent as was previously provided under the Virginia Retail Sales and Use Tax Act, and § 58-441.6 (x) has been added to exempt all aircraft subject to the new Virginia Aircraft Sales and Use Tax Act from the Retail Sales and Use Tax Act.
Nonexempt aircraft must pay the 2 percent tax without an allowance for trade-ins before a State Corporation Commission permit may be issued. Dealers owning five or more aircraft, however, may obtain permits without payment of the tax. Such dealers are then required to register with the Department of Taxation and report tax based on 2 percent of gross receipts derived from the lease, charter, or other use of all aircraft. Persons not paying the 2 percent tax prior to obtaining SCC permits must report the tax on monthly returns, and are subject to the same amount of penalty as are dealers operating under the Virginia Retail Sales and Use Tax Act.
SENATE BILL NO. 268 (Chapter 388)
This bill amends § 58-797, which requires clerks of court to compile a list of deeds for partition and conveyance of land, to require that they submit it to the commissioner of revenue and the Department of Taxation monthly instead of annually.
SENATE BILL NO. 289 (Chapter 378)
This bill amends § 58-444 to double the entrance fees for foreign corporations. This is not an annual fee but is levied only when the foreign corporation receives a certificate of authority to do business in the state or when a corporation's charter is amended to increase its maximum capital stock.
SENATE BILL NO. 293 (Chapter 196)
This bill amends § 58-266.1 to prohibit counties, cities, and towns from imposing a license tax on a person, firm or corporation engaged in the business of renting, as the owner of such property, most classes of real estate. License taxes may still be imposed on the rental of hotels, motels, motor lodges, auto courts, tourist courts, trailer parks, lodging houses, rooming houses, and boarding houses. No locality that had such a tax on January 1, 1974, is prohibited from continuing to levy the tax.
SENATE BILL NO. 294 (Chapter 432)
This bill amends § 2.1-121 to allow the Attorney General's office to represent field employees of the Department of Taxation in civil matters arising from their duties.
SENATE BILL NO. 359 (Chapter 247)
This bill amends §§ 58-471 and 58-484 to provide that tangible personal property of all banks which is leased to customers or other lessees shall be taxed locally as tangible personal property. The book value of such property will then be subtracted from the total value of the bank's capital in computing the value of shares for the purpose of the bank stock tax.
SENATE BILL NO. 360 (Chapter 202)
This bill amends § 58-441.24 to provide that for sales tax purposes bad debts may be charged off against current sales tax liabilities only in the proportion that the loss bears to the original indebtedness to the seller. That is, the uncollected sales price will be viewed as consisting of sales price, sales tax, and other charges in the same proportions that each bore to the total price of the transaction.
SENATE BILL NO. 374 (Chapter 546)
The Virginia Port Authority has always enjoyed sales and use tax immunity as a state agency. This bill amends § 62.1-145 to broaden this immunity to include an exemption for sales, leases, or subleases of property owned by the Authority which is used to handle cargo, merchandise, freight, and equipment used in and about a marine terminal under the supervision of the Authority. The exemption will not apply to property of the Authority that is sold or leased for use other than handling cargo and will not extend to any property owned by persons other than the Authority which is used on or off the premises of a marine terminal under the Authority's supervision.
SENATE BILL NO. 376 (Chapter 438)
This bill amends § 58-266.1 to exclude from gross receipts for local license tax purposes any amount paid to the state or any county, city, or town for the retail sales and use tax, for any local sales tax, or any local excise tax on cigarettes.
SENATE BILL NO. 379 (Chapter 477)
This bill amends the Motor Vehicle Sales and Use Tax Act (§ 58-685.11 and following) to exempt from the titling tax motor vehicles bought for rental purposes. Persons purchasing vehicles for rental are required to pay a 3 percent tax on the gross proceeds from rentals. Rental companies are required to register as dealers and file monthly returns. "Rental" is defined as lease for a period less than twelve months. Revenue from this tax will go to the same fund as revenue from the 2 percent automobile titling tax.
SENATE BILL NO. 383 (Chapter 386)
This bill amends § 58-266.5 to provide that for a business to be subject to a locality's license taxes it must maintain an office in that locality. The fact that "principal and essential acts of business" take place in a locality is no longer construed as constituting a situs. Accordingly, the paragraph defining principal and essential acts of business has been stricken. Businesses that are mobile in character would not be considered to have a situs in every locality in which they operate. If a person has no definite office in the Commonwealth, his situs for local license taxation will be each locality in which he engages in business.
SENATE BILL NO. 406 (Chapter 248)
This bill amends § 58-151.0111 (h) to allow a carry-over of any unused transitional depreciation deduction resulting from lack of sufficient income in taxable years beginning in 1972. This is in order to allow companies to completely utilize the available deduction. To the extent that the entire amount of the transitional deduction for depreciation cannot be taken in the first period beginning on and after January 1, 1972, the excess is deductible in one or more of the three succeeding periods. The excess must, however, be deducted in the earliest period or periods in which it can be deducted, in whole or in part, so far as it is available to reduce the taxpayer's Virginia taxable income determined without regard to the transitional modification.
This bill contains an emergency clause and became effective upon being signed by the Governor on April 1, 1974, for all taxable years beginning on and after January 1, 1973.
SENATE BILL NO. 411 (Chapter 389)
This bill amends § 58-441.34 of the sales tax and permits a dealer to remit an amount based on a percentage, as determined by the Commissioner, of his gross sales for less than ten cents which take into account the inclusion of the sales tax in that amount.
SENATE BILL NO. 444 (Chapter 445)
This bill amends § 58-829 to allow localities to classify antique automobiles as a separate class of tangible personal property for purposes of taxation.
SENATE BILL NO. 530 (Chapter 397)
This bill amends § 58-626.1 to exempt from the tax on rolling stock any transit or bus company that is owned or operated directly or indirectly by any political subdivision of the state. Furthermore, such companies will be exempt from local property taxes.
Bills Carried Over
House Bills
HOUSE BILL NO. 157 (House Finance)
This bill would amend § 58-151.013 to provide uniform income tax treatment to retirees from the civil service, the armed forces, and private industry having pensions that meet the requirements of § 401 of the Internal Revenue Code. It would raise the exclusion to $5,000 for a retiree and to $3,000 for the surviving spouse of the retiree. The exclusions would continue to be reduced to the extent that AGI exceeds $12,000.
HOUSE BILL NO. 159 (House Finance)
This bill proposes to amend § 58-151.013 (c)(3)(D) to eliminate the requirement that members of the armed forces and their surviving spouses be sixty years of age before they qualify for the retirement income exclusion. As surviving spouses of military retirees were exempt from the age requirement by Senate Bill No. 57, (Chapter 682 of The Acts of 1974), the exemption for the retiree himself is the only change.
HOUSE BILL NO. 202 ( Senate Courts of Justice)
This bill would amend § 64.1-1 to allow a surviving spouse to inherit one-third of any real estate of inheritance when husband or wife dies intestate. The bill also provides that if a surviving spouse renounces a will, he or she will have claim to one-third of the total estate instead of the personal estate only. Jointure, dower, and courtesy would be abolished.
HOUSE BILL NO. 294 (House Finance)
This bill is identical to House Bill No. 159.
HOUSE BILL NO. 381 (House Finance)
This bill would amend § 58-514.2 to have the real and tangible personal property of public service corporations assessed by the State Corporation Commission at the true tax ratio established by the Department of Taxation. The bill needs redrafting as the amendment should be to § 58-412.2, which relates to the assessment of public service property.
HOUSE BILL NO. 565 (House Finance)
This bill would amend § 58-151.013 (c) (3) to increase the retirement income exclusion to $3,000 for retirees of the civil service, the armed forces, and the surviving spouses of each. (Senate Bill No. 57 already provides the $3,000 exclusion for retirees of the civil service.)
HOUSE BILL NO. 589 (Senate Finance)
This bill would amend § 58-441.48 changing the ages of children used in determining school age, population from 7 through 20 to 5 through 17 for the purpose of distributing state sales and use tax revenues to localities.
HOUSE BILL NO. 652 (House Finance)
This bill would amend § 58-441.3 (p) to include in the definition of "processing" the industrial laundering of textile products for commercial leasing and rental purposes, thereby extending to such services the exemptions provided by § 58-441.6 of the Virginia Retail Sales and Use Tax Act.
HOUSE BILL NO. 655 (House Finance)
This bill would amend § 58-151.013 to allow persons who rent real property to deduct from Virginia taxable income the portion of the rent that does not exceed the amount of tax assessed on the leased property.
HOUSE BILL NO. 702 (House Finance)
This bill would amend § 58-471 to allow banks to deduct the assessed value of all their tangible personal property in computing the value of shares for the bank stock tax. This property would then become subject to local tangible personal property taxes in the same manner as all other tangible personal property. The provisions of this bill differ markedly from those of Senate Bill No. 359, which was passed by the 1974 General Assembly and signed by the Governor. Under Senate Bill No. 359 (Chapter 247) the book value of tangible personal property that is leased to the public is subject to local taxation and its value deducted in computing the value of shares of stock.
House Bill No. 702 would also amend § 58-484 changing the date on which banks must file tangible personal property tax returns. At present they file such returns on or before May 1 of each year as do other taxpayers. Under this bill they would file returns on or before February 1 of each year. Commissioners of revenue would then be required to furnish banks with the assessed value of such property on or before February 15. Bank stock tax returns would continue to be filed on or before March 1 of each year.
HOUSE BILL NO. 766 (House Finance)
This proposed amendment to § 58-151.013 to raise the retirement income exclusion for civil service retirees to $3,000 was enacted in Senate Bill No. 57 (Chapter 682 of The Acts of 1974).
HOUSE BILL NO. 1017 (House Finance)
This bill would impose a one-half cent tax on all alcoholic beverage and soft drink containers to be paid by the wholesaler and collected by the Department of Taxation. At the beginning of each fiscal year revenues from the containers would be disbursed in the following manner:
-
- 1) Any person, firm, or corporation that has recycled beverage containers as a part of its business and files a claim with the State Tax Commissioner would receive one-half cent for each container that has been recycled.
-
- 2) The remaining revenues would be divided with 50 percent transferred to the Department of Highways to fund a litter cleanup program and 50 percent transferred to the Department of Conservation and Economic Development to fund an anti-litter education program.
- 2) The remaining revenues would be divided with 50 percent transferred to the Department of Highways to fund a litter cleanup program and 50 percent transferred to the Department of Conservation and Economic Development to fund an anti-litter education program.
This resolution proposes an amendment to § 6 of Article X of the Constitution of Virginia relating to property exempt from taxation. It would allow localities to exempt physically handicapped persons from all or part of real property taxes.
Senate Bills
SENATE BILL NO. 59 (Senate Finance)
This bill would provide a $30,000 lifetime exemption from the gift tax for Virginia residents. The lifetime exemption is in addition to the specific exemptions provided under § 58-219.
SENATE BILL NO. 60 (Senate Finance)
This bill would amend §§ 58-153, 58-166, 58-167, and 58-219 relating to inheritance and gift taxes. It would double the exemption allowances and raise the rates of tax for all classifications of beneficiaries under the inheritance and gift tax law. An inheritance tax return would be filed by the decedent's personal representative whenever the gross value of an estate is over $4,000 instead of the present $1,000. It also requires that a return be filed by beneficiaries on gross estates over $2,000 rather than the present $1,000 where there is no designated representative.
SENATE BILL NO. 61 (Senate Finance)
This bill would amend § 58-151.013 to make taxable as income dividends from corporations 50 percent or more of whose income was assessable for Virginia income tax purposes. Dividends from Virginia and national banks would remain tax exempt.
SENATE BILL NO. 208 (Senate Finance)
This bill would add § 58-758.1 to supply a uniform basis for valuation of a taxable leasehold interest in real property where the owner is exempt from property taxes. If the term of the lease is fifty years or more, the lessee would be taxed as if he were the owner. If the term of the lease is less than fifty years, the assessment on the lessee would be reduced two percent for each year that the term is less than fifty years up to a maximum reduction of 90 percent.
SENATE BILL NO. 377 (Senate Finance)
This bill would amend § 58-441.3 to exclude from "gross sales" for sales and use tax purposes any local excise tax on cigarettes.
SENATE BILL NO. 387 (Senate Finance)
This bill would amend § 58-792.01 which requires that a notice be sent to each landowner whenever there is a change in the assessment of any real estate. The notice would include the new appraised value of the land and improvements and their new assessed value if it differs from the appraised value. If the locality employs an assessment ratio, it also must be included on the notice. In addition, the bill repeats some language enacted in Senate Bill No. 147 (Chapter 179 of The Acts of 1974). The bill would also add a section numbered 58-769.4:1 requiring the preparation and retention of a property record card for each piece of property. The card would show the fair market value of the land and improvements and their assessed value. If the appraised value as determined by the person who examined the property is different from that determined by the board of assessors, it would be shown on the card.
SENATE BILL NO. 391 (House Finance)
This bill would amend § 58-441.3 to exempt from the sales tax mandatory gratuities on sales of food and beverages of fifteen percent or less, provided such gratuities are paid by the party receiving them directly to the employees providing such service.
SENATE BILL NO. 394 (Senate Finance)
This bill would amend § 58-512.1 and 58-514.2 to require that all real and personal property of a public service corporation be taxed at the local real estate assessment ratio as determined by the Department of Taxation and that all personal property be taxed at the same rate as real property.
SENATE BILL NO. 398 (Senate Finance)
This bill would amend § 58-503.1 specifically to permit the State Corporation Commission to assess the real estate and tangible personal property of public service corporations using any method the SCC deems appropriate, including the unit valuation method.
SENATE BILL NO. 399 (Senate Finance)
This bill amends § 58-33 to require the Department of Taxation to make annual rather than biennial assessment-sales ratio studies. It would also have the department develop and implement a training program for local assessing officers.
SENATE BILL NO. 409 (Senate Finance)
This bill would add § 58-758.1, creating several classifications of real property for purposes of taxation. It would require land books to show what category each parcel of property is in. The State Tax Commissioner would establish guidelines for use in putting property in the proper classification.
SENATE BILL NO. 412 (Senate Privileges and Elections)
This bill would amend § 58-151.013 to grant a deduction of up to $100 from taxable income to each taxpayer who has claimed the federal credit for political contributions.
Legislative Summaries