Tax Type
General Provisions
Description
1987 Legislative Digest
Topic
Reports
Date Issued
06-01-1987
1987
Legislative Digest
Virginia Department of Taxation
P.O. Box 6-L
Richmond, Va. 23282
June 1987
TABLE OF CONTENTS
Legislative Digest
Virginia Department of Taxation
P.O. Box 6-L
Richmond, Va. 23282
June 1987
TABLE OF CONTENTS
Page
INTRODUCTION STATE TAXES
GENERAL
Differential Interest Rates
CORN
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- Corn Assessment
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- Automatic Lien
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- House Bill 1119, The Virginia Tax Reform Act of 1987
Other Enacted Income Tax Legislation
- House Bill 1119, The Virginia Tax Reform Act of 1987
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- Tax on Wills and Administration
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- Exemptions for Nonprofit Organizations
Other Exemptions
SOYBEAN
Soybean Assessment
- Exemptions for Nonprofit Organizations
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- $1,000 Limitation
LOCAL TAXES
Daily Rental Equipment
Filing Local Returns: Waiver of Penalty and Interest;
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- Due Dates
Local License Tax -- Affiliated Nonstock Corporations
Local License Tax -- Coal Severance Tax
Local License Tax -- News Publication
Local License Tax -- Public Service Corporations
Local License Tax -- Taxicab Drivers
Powers of the Commissioner of the Revenue
Proration of Tangible Personal Property Taxes
Real Property Tax Relief for the Elderly and Handicapped
Release of Lien on Real Estate
Special Assessment for Land Preservation
Tangible Personal Property Tax Exemption
Bills Affecting Specific Localities
INDEX (by Bill Number)
(by Chapter)
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- INTRODUCTION
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This Digest is published by the Department of Taxation as a convenient reference guide to legislation that was enacted by the 1987 General Assembly which affects state and local taxation. With regard to state taxation, the acts of the Assembly summarized in the Digest are only those affecting taxes administered by the Department of Taxation. With respect to local taxation, the Digest includes acts affecting only those local taxes for which the Department of Taxation renders advisory aid and assistance upon request. It excludes bills which grant specific property tax exemptions and bills allowing creation of primary highway transportation districts.
The Digest is not intended to present a definitive interpretation of the law. However, it should prove useful to state and local officials as well as the general citizenry in understanding the enactments of the General Assembly.
The Digest is organized in two parts: state taxes and local taxes. In each part specific tax types are set out with the acts arranged in alphabetical order by subject matter. Chapter numbers for each bill refer to the 1987 Acts of Assembly. The acts are indexed by bill number and chapter at the end of the Digest.
STATE TAXES
GENERAL
Differential Interest Rates
Senate Bill 554 (Chapter 484) amends Va. Code § 58.1-15 to adopt the differential interest rates for overpayments (refunds) and underpayments (assessments) of taxes that are set forth in Internal Revenue Code §§ 6621 (a)(1) and 6621 (a)(2). Pursuant to these provisions, the interest rate on underpayments is one percentage point above that on overpayments. Effective Date: January 1, 1987.
CORN
Corn Assessment
House Bill 1375 (Chapter 476) amends Va. Code §§ 3.1-1043 and 3.1-1044 to expand the definition of a "handler" required to deduct the corn assessment from payments to a farmer or producer of corn. "Handler" now includes any person, public or private corporation, the Federal Commodity Credit Corporation, or any association or partnership buying, accepting for shipment, or otherwise acquiring property in corn from a producer. A mortgagee, pledgee, lienor, or other person, public or private, will also be considered to be a "handler" when the actual or constructive possession of corn is taken as part payment or in satisfaction of a mortgage, pledge, lien, or claim against the producer. The act also authorizes the Virginia Corn Board to enter into an agreement with the Federal Commodity Credit Corporation to collect the assessment. Effective Date: July 1, 1987.
ESTATE TAX
Automatic Lien
House Bill 1442 (Chapter 373) amends Va. Code § 58.1-908 to provide that an automatic lien will no longer arise against the property of a nonresident decedent for unpaid Virginia Estate Tax. A lien will arise only after the department records a memorandum in the circuit court of the locality in which property is located, in the same manner as for residents. Effective Date: July 1, 1987.
INCOME TAXES
House Bill 1119, The Virginia Tax Reform Act of 1987
House Bill 1119, the Virginia Tax Reform Act of 1987 (Chapter 9), made the following changes to the individual and corporation income tax laws:
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- INDIVIDUAL INCOME TAX:
Top Bracket Amount: Amends Va. Code § 58.1-320 to raise the starting income level for the top 5¾% income tax bracket from $12,000 as follows:
- INDIVIDUAL INCOME TAX:
- Taxable Year Income at Which 5¾% Rate Begins
- 1987 $14,000
1989 $16,000
1990 and thereafter $17,000
Personal Exemption Amount: Amends Va. Code § 58.1-322 to increase the personal exemption for each taxpayer and dependent from $600 as follows:
Taxable Year Personal Exemption Amount
- 1987 $700
Standard Deduction Amount: Amends Va. Code § 58.1-322 to replace the present $2,000 maximum standard deduction as follows:
- Married Filing
- 1987 $2,000 $2,000 $1,000
1988 $2,700 $2,700 $1,350
1989 and $3,000 $5,000 $2,500
thereafter
Blind and Aged Deduction: Amends Va. Code § 58.1-322 to continue to provide additional personal exemptions to blind taxpayers and those aged 65 or over for taxable years beginning on and after January 1, 1987. The present $400 additional deduction for taxpayers aged 65 or over has been repealed, but blind and elderly taxpayers have been provided an additional deduction of $200 for taxable year 1987.
Filing Threshold Amounts: Amends Va. Code § 58.1-321 to increase the filing threshold from $3,000 to $5,000 for single taxpayers and $8,000 in combined income for married taxpayers, effective for taxable years beginning on and after January 1, 1987. Persons whose Virginia adjusted gross income falls below the filing threshold are not required to file a return unless they wish to obtain a refund of withholding or estimated taxes paid.
- Additionally, effective July 1, 1987, persons who expect their Virginia adjusted gross income to be below the threshold amounts may file a Form VA-4, Withholding Exemption Certificate, with their employer so that no Virginia income tax is withheld from their wages.
ACRS ADDITIONS AND SUBTRACTIONS FOR CORPORATIONS AND
INDIVIDUALS:
Repeals Va. Code §§ 58.1-323, 58.1-322(B)(6) and 58.1-402(B)(3), amends Va. Code §§ 58.1-322(C)(8) and 58.1-402(C)(9), and adds Va. Code §§ 58.1-323.1 and 58.1-323.2 to fully conform to the federal Accelerated Cost Recovery System (ACRS) for taxable years beginning on and after January 1, 1988 for both individuals and corporations. In addition, beginning with taxable year 1938 returns, individuals and corporations will be able to recover any outstanding Virginia ACRS additions from previous years as follows:
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- Percentage of Additions Allowed as Subtraction
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Individuals 66.7% 33.3%
Corporations 10% 10% 30% 30% 20%
INCOME TAX WITHHOLDING:
New Tables: The income tax withholding tables have been revised effective for wages paid after June 30, 1987. This change should produce immediate savings to individual taxpayers whose employers withhold Virginia income tax. The withholding tables will also change on January 1, 1989 and January 1, 1990 to reflect further changes brought about by House Bill 1119.
Other Enacted Income Tax Legislation
ESTIMATED TAX FOR INDIVIDUALS:
Required Payment: House Bill 1043 (Chapter 611) and Senate Bill 421 (Chapter 599) both amend Va. Code § 58.1-492 to increase the percentage of individual income tax that must be remitted by means of estimated and/or withholding payments from 80% to 90%. Effective Date: Taxable years beginning on and after January 1, 1987; however, the Department of Taxation will not impose the underpayment penalty for taxable year 1987 in cases where the taxpayer pays at least 80% of the tax liability.
Threshold for Declarations: Senate Bill 421 also amends Va. Code § 58.1-490 to provide for changes to the estimated tax filing threshold. The law previously required the filing of a declaration of estimated tax when an individual's federal adjusted gross income, excluding wages on which tax was withheld, was reasonably expected to exceed $400, plus the sum of the individual's personal exemptions.
The new law gives the Tax Commissioner the regulatory authority to set the requirements for the filing of a declaration of estimated tax. The bill provides that the filing threshold determined by the Tax Commissioner shall be an amount which takes into account the additions, subtractions, and deductions set forth in Va. Code § 58.1-322, the credits set forth in Va. Code §§ 58.1-330, 58.1-331, 58.1-332, and 58.1-333, and the filing exclusions set forth in Va. Code § 58.1-321.
The Tax Commissioner is currently developing an emergency regulation which will establish the estimated declaration threshold in accordance with the statutory requirements. Additional information on the proposed threshold will be disseminated as soon as possible, but this threshold will not be final until the adoption of the regulation, prior to January 1, 1988, under the provisions of the Administrative Process Act.
Effective Date: Taxable years beginning on and after January 1, 1987.
Addition to Tax for Underpayment: Senate Bill 554 (Chapter 484) amends Va. Code § 58.1-15 to provide that in computing the addition to tax for the underpayment of estimated taxes by individuals and corporations, the interest rate for the third month following the taxable year shall be applicable during the first 15 days of the fourth month (or May 1 in the case of a calendar year individual return).
- For example, for an individual income taxpayer filing on a calendar year basis, the interest rate in effect for the quarter ending March 31 will also apply through May 1. For a fiscal year filer whose taxable year ends on June 30, the interest rate in effect for the quarter ending September 30 shall also apply through the October 15 due date of the return. Effective Date: Taxable years beginning on and after January 1, 1987.
For new provisions requiring the payment of estimated taxes by estates and trusts, see section on page 10 on estates and trusts.
INDIVIDUAL AND CORPORATION INCOME TAXES:
Alternative Depreciation System: Senate Bill 554 (Chapter 484) provides that the new federal Alternative Depreciation System is not subject to the excess cost recovery additions and subtractions set forth in Va. Code § 58.1-323. Effective Date: Taxable years beginning on and after January 1, 1987.
For provisions relating to the Accelerated Cost Recovery System, see the section on page 4 relating to ACRS additions and subtractions of corporations and individuals.
INDIVIDUAL INCOME TAX:
Two-Earner Married Couple Deduction: Senate Bill 554 (Chapter 484) amends Va. Code § 58.1-322 to repeal the addition to federal adjusted gross income for the federal two-earner married couple deduction. This addition was eliminated due to the repeal of the federal two-earner married couple deduction under the federal Tax Reform Act of 1986. Effective Date: Taxable years beginning on and after January 1, 1987.
Lump Sum Distributions: Senate Bill 554 also amends the Va. Code § 58.1-322 provisions relating to additions to federal adjusted gross income for lump sum distributions from qualified retirement plans. The change reflects the provisions of the federal Tax Reform Act of 1986, specifically addressing both the 5-year and 10-year averaging provisions of the new federal law. Effective Date: Taxable years beginning on and after January 1, 1987.
Deduction for Virginia National Guard Pay: House Bill 1233 (Chapter 615) amends Va. Code § 58.1-322 to provide a deduction from federal adjusted gross income of up to $3,000 in pay received from 39 days of active or inactive service in the Virginia National Guard. The deduction will be limited, however, to persons of the rank of 03 (Captain) or below. Effective Date: Taxable years beginning on and after January 1, 1989.
CORPORATION INCOME TAX:
Bad Debt Deduction for Savings and Loans: House Bill 1175 (Chapter 614) amends Va. Code § 58.1-403 to restore the pre-1987 percentage of income bad debt deduction provisions used by savings and loan associations. Savings and loan associations which use the percentage of income method to compute their federal bad debt deduction will continue to use the 40% bad debt deduction used before the federal Tax Reform Act of 1986, rather than the 8% deduction now provided under federal law. Thus, this bill will preserve the Virginia income tax treatment of savings and loan bad debt deductions by keeping the percentage of income used for Virginia purposes at the level used prior to federal tax reform. Effective Date: Taxable years beginning on and after January 1, 1987.
Employee Stock Ownership Plans: Senate Bill 554 (Chapter 484) amends Va. Code § 58.1-402 to repeal the subtraction for employer contributions to employee stock ownership plans (ESOP's). This provision was repealed due to the repeal of the federal ESOP credit under the federal Tax Reform Act of 1986. The Virginia addition required for ESOP credit carryovers was retained because the federal Tax Reform Act of 1986 continues to allow the federal credit to be carried forward. Effective Date: Taxable years beginning on and after January 1, 1987.
ESTATES AND TRUSTS:
Estimated Payment Requirements for Estates and Trusts: Senate Bill 554 (Chapter 484) amends Va. Code §§ 58.1-490, 58.1-492, and 58.1-493 to subject estates and trusts to the same requirements as individual taxpayers for the filing of estimated taxes. This new provision, reflects a similar change made by the federal Tax Reform Act of 1986. Under this provision, an estate will be required to file a declaration of estimated tax only with respect to a taxable year ending two or more years after the date of death of the decedent, but trusts will be required to file declarations of estimated tax annually. Effective Date: Taxable years beginning on and after January 1, 1988.
PROBATE
Tax on Wills and Administration
Senate Bill 600 (Chapter 234) amends Va. Code § 26-12.3 to raise the minimum estate subject to the probate tax from $500 to $5,000. Effective Date: July 1, 1987.
RETAIL SALES AND USE TAX
The following bills enact or expand various exemptions from the Virginia Retail Sales and Use Tax granted under Va. Code § 58.1-608. The applicable subsection will be noted for the bills that expand an existing exemption.
Exemptions for Nonprofit Organizations
FREE HEALTH CLINICS: House Bill 972 (Chapter 532) creates an exemption for all tangible personal property purchased for use or consumption by a nonprofit, nonstock corporation which is organized exclusively for the purpose of conducting a clinic fir the furnishing of free health care services by licensed physicians and dentists. Effective Date: July 1, 1987.
CHURCH CAMPS AND CONFERENCE CENTERS: House Bill 1256 (Chapter 541) expands the existing exemption for nonprofit churches under Va. Code § 58.1-608(38) to provide an exemption for food, disposable serving items, cleaning supplies and teaching materials used by a nonprofit church, or organization composed of several nonprofit churches such as a diocese, synod or conference, in the operation of camps or conference centers, provided such items are used in carrying out the work of the church(es). However, the exemption does not apply to purchases of food, disposable serving items, etc., used or consumed while the church camp or conference center is being utilized for non-church related functions, such as by business groups, governmental organizations, civic groups and other groups not affiliated with the church. Effective Date: July 1, 1987.
COMMUNITY HEALTH CENTERS: House Bill 1407 (Chapter 544) creates an exemption for all tangible personal property purchased for use or consumption by nonprofit community health centers established to provide health care services for areas of Virginia containing a "medically underserved population," as defined by 42 U.S.C. § 254 c(b)(3). "Medically underserved population" means "the population of an urban or rural area designated by the Secretary of Health and Human Services as an area with a shortage of personal health services or a population group designated by the Secretary as having a shortage of such services." Effective Date: July 1, 1987.
HEALTH MAINTENANCE ORGANIZATIONS: Senate Bill 382 (Chapter 515) reinstates the exemption for tangible personal property purchased for use or consumption by nonprofit health maintenance organizations licensed under Chapter 43 of Title 38.2 of the Virginia Code. This exemption was inadvertently omitted by the recodification of Title 58. Effective Date: Retroactive to January 1, 1985.
FOSTER CARE ORGANIZATIONS: Senate Bill 587 (Chapter 524) creates an exemption for all tangible personal property purchased by nonprofit organizations organized exclusively to provide education, training, services and assistance in independent living to foster care children and youth without families. Effective Date: July 1, 1987.
ELEMENTARY OR SECONDARY SCHOOLS: Senate Bill 587 (Chapter 524) expands the exemption for school fund raising materials under Va. Code § 58.1-608(63) to include tangible personal property purchased by nonprofit elementary or secondary schools for use in fund raising activities the net proceeds of which are contributed directly to the schools or used to purchase certified school equipment. The exemption includes sales of class rings, school photos and other fund raising programs from which nonprofit elementary or secondary schools receive a commission or the net proceeds after payment of vendors and other direct expenses. Under prior law the exemption applied only to purchases of fund raising materials by PTA's or similar groups. Schools which paid the tax on such fund raising items purchased between July 1, 1986 and July 1, 1987 may apply for a refund from the department within three years of the date upon which such tax became due and payable. Claims for refund may be filed with the Taxpayer Assistance Section at P.O. Box 6-L, Richmond, Virginia 23282. Effective Date: Retroactive to July 1, 1986.
Other Exemptions
TAXICAB OPERATORS: House Bill 1303 (Chapter 587) expands the existing exemption for taxicab operators under Va. Code § 58.1-608(54) to include an exemption for the sale or lease of meters and dispatch radios to taxicab operators, provided such items are used directly in the rendition of their taxicab service. Effective Date: July 1, 1987.
VETERINARY PRESCRIPTIONS: House Bill 1594 (Chapter 548) amends Va. Code § 58.1-608(21) to provide an exemption for sales of medicines or drugs purchased on the prescription or work order of licensed veterinarians. However, veterinarians are now deemed to be the taxable users and consumers of all such medicines or drugs. Therefore, veterinarians must pay the tax on the purchase of all medicines and drugs regardless of whether they are used or consumed in their practice or sold at retail. Effective Date: July 1, 1987.
SOYBEAN
Soybean Assessment
House Bill 1375 (Chapter 476) amends Va. Code §§ 3.1-1043 and 3.1-1044 to expand the definition of a "handler" required to deduct the soybean assessment from payments to a farmer or producer of soybeans. "Handler" now includes any person, public or private corporation, the Federal Commodity Credit Corporation, or any association or partnership buying, accepting for shipment, or otherwise acquiring property in soybeans from a producer. A mortgagee, pledgee, lienor, or other person, public or private, will also be considered to be a "handler" when the actual or constructive possession of soybeans is taken as part payment or in satisfaction of a mortgage, pledge, lien, or claim against the producer. The act also authorizes the Virginia Soybean Board to enter into an agreement with the Federal Commodity Credit Corporation to collect the assessment. Effective Date: July 1, 1987.
WATERCRAFT SALES AND USE TAX
$1,000 Limitation
Senate Bill 391 (Chapter 516) amends Va. Code § 58.1-1402 to provide a $1,000 maximum tax limitation on the amount of Watercraft Sales and Use Tax which may be levied on the sale price of watercraft sold in Virginia; on the sale price of watercraft sold elsewhere but required to be titled in Virginia; and on the market value of watercraft first required to be titled in Virginia six months or more after its acquisition. This maximum tax limitation does not apply to leases, charters or other uses of watercraft subject to the Watercraft Sales and Use Tax. Effective Date: July 1, 1987 through July 1, 1992.
LOCAL TAXES
Daily Rental Equipment
House Bill 1376 (Chapter 591) and Senate Bill 495 (Chapter 572), which are identical, amend Va. Code § 58.1-3510 to include daily rental equipment in the definition of merchants' capital. The bills define daily rental equipment as all tangible personal property, except trailers and other tangible personal property required to be titled and registered with a state agency, where the possession or use is transferred for a consideration, without the transfer of ownership, for an hourly, daily, weekly or monthly period. The definition specifically excludes rental contracts which exceed 90 days or which are renewed within 30 days after the 90-day period expires.
Rental equipment which does not qualify as daily rental equipment is to be valued pursuant to Va. Code § 58.1-3503 (A) (17). Effective Date: July 1, 1988.
Filing Local Returns: Waiver of Penalty and Interest; Due Dates
House Bill 1557 (Chapter 595) amends Va. Code § 58.1-3916 by designating the commissioner of the revenue, rather than the treasurer, as the local official to determine whether the penalty and interest for failure to file a local return shall be waived because the failure to file was not the fault of the taxpayer. The local treasurer remains the official to make such determination in case of a penalty for failure to pay a tax. The bill further amends this section to allow the governing body of Spotsylvania County to make such determination rather than the commissioner or the treasurer.
Senate Bill 432 (Chapter 570) makes almost identical amendments to this section.
In addition House Bill 1557 (Chapter 595) and Senate Bill 667 (Chapter 582) both amend Va. Code § 58.1-3916 to allow a county to specify a date for payment of license taxes which coincides with such date in any adjacent jurisdiction. Effective Date: July 1, 1987.
General Classification of Tangible Personal Property
House Bill 1517 (Chapter 568) amends Va. Code § 58.1-3503 to allow the commissioner of the revenue to assess automobiles by any method which establishes fair market value, if the model and year of the individual automobile are not listed in a recognized pricing guide and a percentage or percentages of original cost do not accurately reflect fair market value. Effective Date: July 1, 1987.
Local License Tax -- Affiliated Nonstock Corporations
House Bill 1369 (Chapter 617) amends Va. Code § 58.1-3703 B. 10. to expand the exemption from the local license tax to receipts or purchases between affiliated nonstock corporations. "Affiliated group" means one or more chains of includible corporations connected through stock ownership with a common parent corporation. This bill provides that the term "stock" refers to nonstock corporation membership or membership voting rights when one or more of the includible corporations, including the common parent corporation, is a nonstock corporation. Effective Date: July 1, 1987.
Local License Tax -- Coal Severance Tax
House Bill 1459 (Chapter 711) adds Va. Code § 58.1-3713.2 to provide that local coal severance taxes are to be paid to the locality in which the coal is first placed in transit for shipment outside of the jurisdiction imposing the tax. The tax will not be imposed on coal if a coal severance tax or comparable tax has been paid to the locality or state in which it was mined. Effective Date: July 1, 1987.
Local License Tax -- News Publication
House Bill 1395 (Chapter 618) amends Va. Code § 58.1-3703 B. 3. to exempt from the local license tax the privilege or right of printing or publishing any newsmagazine, newsletter or other news publication. This expands the existing exemption for the privilege or right of printing or publishing any newspaper. Effective Date: July 1, 1988.
Local License Tax -- Public Service Corporations
House Bill 1456 (Chapter 244) amends Va. Code § 58.1-3731 to eliminate the double taxation of certain public service corporations, by limiting the imposition of the local license tax on the gross receipts of such public service corporations to sales to the ultimate consumer in the locality. Previously, the local license tax was imposed on the gross receipts of the company accruing from business in the locality. Effective Date: July 1, 1987.
Local License Tax -- Taxicab Drivers
House Bill 1495 (Chapter 715) amends Va. Code § 58.1-3703 to exempt from the local license tax a taxicab driver who operates for a taxicab company upon which the locality has imposed a license tax. Effective Date: July 1, 1987.
Powers of the Commissioner of the Revenue
House Bill 1489 (Chapter 377) amends Va. Code § 58.1-3110 to prohibit the commissioner of the revenue from summoning a taxpayer or other person to inquire into the tax liability of the taxpayer which is the subject of litigation. Effective Date: July 1, 1987.
Proration of Tangible Personal Property Taxes
Senate Bill 493 (Chapter 212) amends Va. Code § 58.1-3516 to allow localities which prorate the tangible personal property tax to exclude boats from property subject to proration. Before the amendment, a locality which adopted proration was required to prorate the tax on motor vehicles, trailers and boats. Effective Date: July 1, 1987.
Real Property Tax Relief for the Elderly and Handicapped
Senate Bill 593 (Chapter 525) amends Va. Code § 58.1-3211:
to increase the allowable income limitation for qualifying for tax relief from $18,000 to $22,000;
to allow the exclusion from the allowable income limitation of up to $7,500 of permanent disability compensation;
to increase to $6,500 the amount of income of a relative, not the spouse, living in the dwelling which may be excluded from the allowable income limitation; and
to increase the allowable net combined financial worth of the owners and of the spouse of any owner from $65,000 to $75,000.
The bill repeals the authority of the local governing bodies to increase the income limit in localities having a combined program of exemption and deferral, and eliminates the provision that the income limitation may be increased from $18,000 to $19,000 with the exemption or deferral being reduced by the amount that the combined income exceeds $18,000.
The bill also amends Va. Code § 58.1-3215 to allow a locality's ordinance to prorate the exemption or deferral of real estate taxes for a change in ownership resulting from the qualifying owner's sale of such property, and to exclude the sale proceeds from the financial net worth or income computation for the year of the sale. Previously, the exemption was prorated only when the qualifying owner died and the property was transferred to a nonqualifying spouse.
House Bill 1545 (Chapter 546) makes identical amendments to § 58.1-3211 and House Bill 1157 (Chapter 534) makes identical amendments to § 58.1-3215.
Effective Date: July 1, 1987.
Release of Lien on Real Estate
House Bill 1482 (Chapter 245) adds Va. Code § 58.1-3226.1 which allows a local governing body to adopt an ordinance to provide that a delinquent tax lien on a portion of a parcel of real estate which is sold be released upon payment of the taxes, interest and penalties attributable to the portion of real estate sold. Effective Date: July 1, 1987.
Special Assessment for Land Preservation
Senate Bill 429 (Chapter 550) amends Va. Code §§ 58.1-3230, 58.1-3233, 58.1-3239 and 58.1-3240 to add the State Forester to the State Land Evaluation Advisory Council and to the list of agency heads who provide standards and from whom local officials may request an opinion as to whether a real estate parcel qualifies for special use assessment. The bill also substitutes the Department of Forestry for the Department of Conservation and Historic Resources as the agency to prescribe standards for establishing forest areas. Effective Date: July 1, 1987.
Tangible Personal Property Tax Exemption
House Bill 1041 (Chapter 533) amends Va. Code § 58.1-3617 to classify all motor vehicles owned by churches and used predominantly for church purposes as property used by its owner for religious purposes, and thus exempt from local property taxation. This replaces the exemption for vehicles designed for carrying more than ten passengers, owned by churches and used for church purposes. Effective Date: July 1, 1987.
Bills Affecting Specific Localities (Excludes bills which grant specific property tax exemptions and bills allowing creation of primary highway transportation districts)
House Bill 978 (Chapter 233) amends Va. Code § 58.1-3516 to add the City of Danville to the list of localities which may provide by ordinance for the proration of personal property tax on motor vehicles, trailers and boats. Effective Date: July 1, 1987.
House Bill 1182 (Chapter 537) adds Va. Code § 58.1-3919.1 to authorize the treasurer of any county under the county manager plan of government to employ private collection agents to collect delinquent local taxes other than real estate, and provides for the compensation of such services. (Currently this applies only to Arlington County.) Effective Date: July 1, 1987.
House Bill 1221 (Chapter 362) and Senate Bill 378 (Chapter 318) amend Va. Code § 58.1-3274 to authorize the Counties of Accomack and James City to assess real estate annually or biennially. Effective Date: July 1, 1987.
Senate Bill 569 (Chapter 628) amends Va. Code § 58.1-3231 and adds Va. Code § 58.1-3237.1 to authorize Loudoun County to include in its use value assessment ordinance the following additional provisions:
The governing body may exclude land lying in planned development, industrial or commercial zoning districts from special use assessments.
The governing body may provide that property will be subject to roll-back taxes at the time the zoning is changed, at the owner's request, to a more extensive use at the time the zoning is changed rather than at the time change in use occurs. Certain owner-operated agricultural activities are exempt from these eligibility and roll-back provisions.
Effective Date: July 1, 1987.
INDEX
By Bill Number: Page
Bill No. Ch. Subject
HB 972 532 Free Health Clinics
HB 978 233 City of Danville -- Proration
HB 1041 533 Tangible Personal Property Tax Exemption
HB 1043 611 Individual Estimated Tax -- Required Payment
HB 1119 9 The Virginia Tax Reform Act of 1987
HB 1157 534 Real Property Tax Relief for the Elderly
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-
-
-
-
-
-
- and Handicapped
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-
-
-
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HB 1182 537 Arlington County -- Private Collection Agents
HB 1221 362 Counties of Accomack and James City –
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-
-
-
-
-
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- Real Estate Assessment
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-
-
-
-
-
HB 1256 541 Church Camps and Conference Centers
HB 1303 587 Taxicab Operators
HB 1369 617 Local License Tax -- Affiliated Nonstock
-
-
-
-
-
-
-
-
- Corporations
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-
-
-
-
-
-
Soybean Assessment
HB 1376 591 Daily Rental Equipment
HB 1395 618 Local License Tax -- News Publication
HB 1407 544 Community Health Centers
HB 1442 373 Automatic Lien
HB 1456 244 Local License Tax -- Public Service Corporations
HB 1459 711 Local License Tax -- Coal Severance Tax
HB 1482 245 Release of Lien on Real Estate
HB 1489 377 Powers of the Commissioner of the Revenue
HB 1495 715 Local License Tax -- Taxicab Drivers
HB 1517 568 General Classification of Tangible Personal Property
HB 1545 546 Real Property Tax Relief for the Elderly
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-
-
-
-
-
-
- and Handicapped
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-
-
-
-
-
-
-
-
-
-
-
-
- Due Dates
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-
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-
-
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SB 378 318 Counties of Accomack and James City –
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-
-
-
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-
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- Real Estate Assessment
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-
-
-
-
-
SB 391 516 $1,000 Limitation
SB 421 599 Individual Estimated Tax -- Required
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-
-
-
-
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-
-
- Payment
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-
-
-
-
-
- Declarations
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-
SB 432 570 Filing Local Returns: Waiver of Penalty
and Interest; Due Dates
SB 493 212 Proration of Tangible Personal Property Taxes
SB 495 572 Daily Rental Equipment
SB 554 484 Addition to Tax for Underpayment
Alternative Depreciation System
-
- Differential Interest Rates
Estimated Payment Requirements for Estates
and Trusts
-
- Lump Sum Distributions
SB 569 628 Loudoun County -- Use Value Assessment
SB 587 524 Elementary or Secondary Schools
Foster Care Organizations
SB 593 525 Real Property Tax Relief for the Elderly
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-
-
- and Handicapped
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-
SB 667 582 Filing Local Returns: Waiver of Penalty
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- and Interest; Due Dates
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By Chapter:
Ch. Bill No. Subject Page
9 HB 1119 The Virginia Tax Reform Act of 1987
212 SB 493 Proration of Tangible Personal Property
Taxes
233 HB 978 City of Danville -- Proration
234 SB 600 Tax on Wills and Administration
244 HB 1456 Local License Tax -- Public Service
Corporations
245 HB 1482 Release of Lien on Real Estate
318 SB 378 Counties of Accomack and James City -- Real
Estate Assessment
362 HB 1221 Counties of Accomack and James City -- Real
Estate Assessment
373 HB 1442 Automatic Lien
377 HB 1489 Powers of the Commissioner of the Revenue
476 HB 1375 Corn Assessment
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- Soybean Assessment
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- Alternative Depreciation System
Differential Interest Rates
- Alternative Depreciation System
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Estimated Payment Requirements for Estates
and Trusts
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- Lump Sum Distributions
Two-Earner Married Couple Deduction
- Lump Sum Distributions
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516 SB 391 $1,000 Limitation
524 SB 587 Elementary or Secondary Schools
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- Foster Care Organizations
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and Handicapped
532 HB 972 Free Health Clinics
533 HB 1041 Tangible Personal Property Tax Exemption
534 HB 1157 Real Property Tax Relief for the Elderly
and Handicapped
537 HB 1182 Arlington County -- Private Collection
Agents
541 HB 1256 Church Camps and Conference Centers
544 HB 1407 Community Health Centers
546 HB 1545 Real Property Tax Relief for the Elderly
and Handicapped
548 HB 1594 Veterinary Prescriptions
550 SB 429 Special Assessment for Land Preservation
568 HB 1517 General Classification of Tangible Personal
Property
570 SB 432 Filing Local Returns: Waiver of Penalty
and Interest; Due Dates
572 SB 495 Daily Rental Equipment
582 SB 667 Filing Local Returns: Waiver of Penalty
and Interest; Due Dates
587 HB 1303 Taxicab Operators
591 HB 1376 Daily Rental Equipment
595 HB 1557 Filing Local Returns: Waiver of Penalty
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- and Interest; Due Dates
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Individual Estimated Tax -- Threshold for Declarations
611 HB 1043 Individual Estimated Tax – Required Payment
614 HB 1175 Bad Debt Deduction for Savings and Loans
615 HB 1233 Deduction for Virginia National Guard Pay
617 HB 1369 Local License Tax -- Affiliated Nonstock
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- Corporations
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628 SB 569 Loudoun County -- Use Value Assessment
711 HB 1459 Local License Tax -- Coal Severance Tax
715 HB 1495 Local License Tax -- Taxicab Drivers
Legislative Summaries