Tax Type
General Provisions
Description
Legislative Digest
Topic
Reports
Date Issued
07-01-1988
1988
Legislative Digest
Virginia Department of Taxation
Table of Contents
STATE TAXES
INDIVIDUAL INCOME TAX
Check Offs: 2
Crime Solver Rewards: 2
Lump Sum Distributions: 3
Retirement Income Deduction: 3
Virginia Tuition Savings Program: 4
CORPORATE INCOME TAX
-
- Accelerated Cost Recovery System: 4
- Coal Cogeneration Credit: 4
Taxation Of S Corporations: 4
Telecommunications Companies: 5
ESTIMATED INCOME TAX
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- Filing Threshold For Individuals, Estates And Trusts: 5
WITHHOLDING TAX
Eighth-monthly Filing: 5
PARTNERSHIP INCOME TAX
Partnership Returns: 6
SALES AND USE TAXES
-
- Contractors' Use Tax: 6
Diesel Fuel Excise Tax: 6
Exemption For Telecommunications Entities: 6
Reporting Of Sales Tax Data To Towns: 7
Sales And Use Tax Expenditure Study: 7
- Contractors' Use Tax: 6
WATERCRAFT SALES AND USE TAX
Purchases By Volunteer Fire And Rescue Squads: 7
SET OFF DEBT COLLECTION ACT
Errors In Set-off Program: 7
-
- Application Of Funds On Deposit: 8
GRANTOR'S, RECORDATION and PROBATE TAX
Conveyance By Church: 8
-
- Exemption For Corporate Reorganizations: 9
Property In Multiple Jurisdictions: 9
Escheat Proceedings: 9
Probate Tax Exemption: 9
- Exemption For Corporate Reorganizations: 9
MISCELLANEOUS PROVISIONS
Beer And Beverage Tax: 10
LOCAL TAXES
REAL PROPERTY, TAX RELIEF
-
- Tax Relief For The Elderly And Handicapped - Qualification: 11
Tax Relief For The Elderly And Handicapped - Furnishings: 11
Tax Relief For The Elderly And Handicapped - Disabled Owner: 11
- Tax Relief For The Elderly And Handicapped - Qualification: 11
LAND USE
-
- Land Use - Minimum Acreage: 11
Land Use - Roll-back Taxes: 12
Land Use - Special Assessment For Land Preservation: 12
- Land Use - Minimum Acreage: 11
REAL PROPERTY TAX - GENERAL ADMINISTRATION
-
- Exemptions - Publication And Costs: 13
Assessments - Board Of Assessors: 13
Assessments - Cooperative Apartment Units: 13
Assessments - Land And Improvements: 14
Collection - Notice Of Sale For Delinquent Taxes: 14
Collection - Release Of Liens: 14
Tax Increment Financing: 14
- Exemptions - Publication And Costs: 13
TANGIBLE PERSONAL PROPERTY TAX
-
- Classification Of Vans: 15
Minimum Tax: 15
Proration: 15
- Classification Of Vans: 15
LOCAL LICENSE TAX
Affiliated Corporations: 15
Industrial Loan Associations: 16
Local Coal Road And Gas Improvement Tax
Transfer Of Funds: 16
Local Coal Road And Gas Improvement Tax
Name Change And Expenditure Of Funds: 16
Printing Or Publishing: 16
CONSUMER UTILITY TAX
Churches: 17
MERCHANTS' CAPITAL TAX
Daily Rental Equipment: 17
GRANTOR'S TAX
Conveyance By Church: 17
RECORDATION TAX
Collection Of Tax: 17
Exemption For Corporate Reorganizations: 17
Escheat Proceedings: 18
MISCELLANEOUS PROVISIONS
Correction Of Erroneous Assessments: 18
Payment Of Fees By Credit Card;
Limitations On Service Charge: 18
Publication Of Delinquent Taxpayer List: 18
INTRODUCTION
This Legislative Digest is published by the Department of Taxation as a convenient reference guide to legislation which was enacted by the 1988 General Assembly. It contains a general description of legislation affecting:
§ State taxes administered by the Department of Taxation;
§ Local taxes for which the Department of Taxation renders advisory aid and assistance.
Bills granting property tax exemptions, creating special districts, or affecting state taxes other than those administered by the Department of Taxation are not included.
The material in this Digest does not represent official interpretations of legislation. The Digest is intended only to provide a short overview of 1988 legislative actions
State taxes are covered in Part I and local taxes in Part II. Both parts are organized by subject matter and reference the chapter number of the 1988 Acts of Assembly in which the bill will be contained. An index by Va. Code section and bill number may be found at the end of the Digest.
STATE TAXES
Individual Income TaxCHECK-OFFS:
Three bills were passed to allow taxpayers to con-tribute a portion of an individual income tax refund to:
• The Open Space Recreation and Conservation Fund;
• The United States Olympic Committee; or
• The Housing for the Homeless, Elderly and Disabled Fund.
Open Space Recreation: House Bill 197 allows any individual to voluntarily designate all or part of his income tax refund to the Open Space Recreation and Conservation Fund for use by the Department of Conservation and Historic Resources. No contribution may be less than $1.00.
Effective Date: Taxable years beginning on and after January 1,1988 through
December 31, 1993
Chapter: 817
Code Affected: 58.1-345.1
U. S. Olympic Committee: House Bill 257 allows any individual to voluntarily designate all or part of his income tax refund to the U. S. Olympic Committee. No minimum contribution is specified.
-
- Effective Date: Taxable years beginning on and after January 1,1988 through December 31,1993
Code Affected: 58.1-346.1
Housing: House Bill 990 allows any individual to designate all or part of his income tax refund to the Housing for the Homeless, Elderly, and Disabled Fund to be used by the Department of Housing and Community Development to provide assistance to emergency shelters for the homeless, or for housing for the elderly and physically or mentally disabled. No contribution may be less than $1.00.
Effective Date: Taxable years beginning on and after January 1,1988 through
December 31,1993
Chapter: 861.
Code Affected: 58.1-346.1
CRIME SOLVER REWARDS:
1. House Bill 916 provides an individual income tax subtraction for rewards received for providing information to any law enforcement agency or official or to any nonprofit corporation created exclusively to assist law-enforcement officials or agencies in the apprehension and conviction of perpetrators of crimes. The subtraction is limited to a maximum of $1,000 and is not applicable to:
• individuals employed by or under contract with a law-enforcement agency;
• a victim or the perpetrator of a crime for which the reward was paid; or
• any other person compensated for the investigation of crimes or accidents.
- Effective Date: Taxable years beginning on and after January 1, 1988
Code Affected: 58.1-322
2. House Bill 1056 specifically prohibits the Department of Taxation from requiring nonprofit organizations created exclusively to assist law enforcement officials or agencies in the apprehension and conviction of perpetrators of crimes to report the names of individuals or amounts paid to individuals for providing information about crimes.
Effective Date: July 1, 1988
Chapter: 444
Code Affected: 58.1-441
LUMP SUM DISTRIBUTIONS:
House Bill 223 deletes unnecessary language to clarify that lump sum distributions from a qualified retirement plan are not taken into account when calculating the standard deduction. This technical correction was necessary due to the Virginia Tax Reform Act of 1987, which changed the standard deduction from a percentage of federal adjusted gross income to a flat amount.
- Effective Date: Taxable years beginning on and after January 1, 1987
Chapter: 743
Code Affected: 58.1-322
RETIREMENT INCOME DEDUCTION:
House Bill 910 and Senate Bill 6 provide a deduction from federal adjusted gross income for the first $3,000 in retirement benefits received by any per-son aged 62 or over.
The $3,000 deduction is reduced by any Social Security or other nontaxable retirement benefits received during the taxable year. Further, taxpayers would be limited to either this $3,000 deduction or the age credit, but not both.
- Effective Date: Taxable years beginning on and after January 1, 1990
Chapter: 755 (HB 910) and 741(SB 6)
Code Affected: 58.1-322 and 58.1-330
VIRGINIA TUITION SAVINGS PROGRAM:
House Bill 175 creates the Virginia Tuition Savings Program to encourage families to save money to pay for children's higher education expenses and provide a convenient method for such savings. As a part of the Individual Income Tax packets, the Department of Taxation will distribute a financial analysis of higher education expenses.
Effective Date: July 1, 1988
Chapter: 247
Code Affected: 23-38.72 and 23-38.73
Corporate Income Tax
ACCELERATED COST RECOVERY SYSTEM:
(Also applicable to individuals) Senate Bill 441 permits any taxpayer who filed a final federal and Virginia return for a taxable year beginning before January 1, 1988, to apply for a refund of the out-standing amounts of excess cost recovery which have not been previously subtracted. The applications will be subject to the provisions of Va. Code 58.1-1823 and must be made pursuant to regulations and on forms prescribed by the department.
Effective Date: July 1, 1988
Chapter: 773
Code Affected: 58.1-323.1
COAL COGENERATION CREDIT:
House Bill 748 creates a corporate income tax credit for cogenerators. Corporations which qualify as "cogenerators" or "small power producers" under federal law and regulations may claim a credit against Virginia corporate income tax based on the number of tons of Virginia coal purchased. The credit is computed at $1.00 for each ton of coal mined in Virginia for taxable years beginning on and after January 1, 1988 and $2.00 per ton for taxable years beginning on and after January 1, 1989. The credit is nonrefundable, but any unused credit may be carried forward for a maximum of five taxable years.
- Effective Date: Taxable years beginning on and after January 1, 1988.
- Expiration Date: December 31, 1996
Chapter: 730
Code Affected: 58.1-433 and 58.1-2600
TAXATION OF S CORPORATIONS:
House Bill 222 clarifies that Virginia will continue to tax only individuals as shareholders on the in-come of S corporations by reinstating the corporate income tax exemption for S corporations prior to the enactment of the Virginia Technical Corrections Act of 1987.
Effective Date: Taxable years beginning on and after January 1, 1987
Chapter: 581
Code Affected: 58.1-401
TELECOMMUNICATIONS COMPANIES:
Senate Bill 312 subjects telecommunications companies (telephone and telegraph) to the corporate income tax in lieu of the public service corporation license tax on gross receipts and the pole line tax. The corporate income tax is phased in over a 10-year period. A minimum tax and a credit for a portion of the income tax liability are included for several years so that initially the total tax liability will be approximately equal to the gross receipts tax.
Effective Date: Taxable years beginning on and after January 1, 1989
-
- Code Affected: 58.1-333; 58.1-400.1; 58.1-401; 58.1-403; 58.1-430; 58.1-433; 58.1-2600; 58.1-2605; 58.1-2608; 58.1-2621; 58.1-2622; 58.1-2623; 58.1-2624; 58.1-2625; 58.1-2628; 58.1-2629; 58.1-2631; 58.1-2633; 58.1-2640; 58.1-2647; 58.1-2648; 58.1-2650; 58.1-2651; and 58.1-2660
Estimated Income Tax
FILING THRESHOLD FOR INDIVIDUALS, ESTATES AND TRUSTS:
House Bill 221 conforms the threshold for filing a declaration of estimated income tax by estates and trust to that of individual taxpayers, and makes a technical change to clarify that the threshold for individual taxpayers is computed based upon tax liability. As a result, the threshold below which individuals, estates and trusts are not required to file a declaration will be computed based upon Virginia tax liability. Emergency Regulation 630-2-490.2 sets the filing threshold at $150 in tax due.
- Effective Date: Taxable years beginning on and after January 1, 1987
- Chapter: 248
Code Affected: 58.1-490
Withholding Tax
EIGHTH-MONTHLY FILING:
Senate Bill 312 accelerates the payment of with-holding taxes by requiring large employers to file and pay the tax as often as eight times a month in-stead of four, with payments to be made on the same payment dates as required for federal withholding taxes. If an employer is holding $500 or more of Virginia withholding tax when a deposit of federal withholding tax is required, a Virginia payment is due. Currently, federal withholding taxes must be deposited up to eight times a month, within 3 banking days of the 3rd, 7th, 11th, 15th, 19th, 22nd, 25th and last day of the month.
Effective Date: July 1, 1988
Chapter: 899
Code Affected: 58.1-472
(NOTE: Senate Bill 312 also affects corporate income and sales and use taxes. See those subject matter headings for additional information.)
Partnership Income Tax
PARTNERSHIP RETURNS:
House Bill 242 repeals the requirement that partnerships file a Virginia income tax return. The Tax Commissioner is granted the authority to re-quire that partnerships, on request, furnish a copy of federal income tax returns and other schedules if deemed necessary.
-
- Effective Date: This bill contained an emergency clause and was effective on
March 23, 1988
- Effective Date: This bill contained an emergency clause and was effective on
Code Affected: 58.1-392, 58.1-393,and 58.1-394
Sales And Use Taxes
CONTRACTORS' USE TAX:
House Bill 555 levies a special state use tax on motor vehicles, machinery and tools, aircraft, and equipment brought into Virginia for use in performing construction contracts. The special use tax would not apply to articles purchased in a state that does not impose a similar use tax upon Virginia con-tractors and is imposed at a rate of 3 1/2% on all property, except motor vehicles which will be taxed at a 3% rate and watercraft and aircraft which will be taxed at a 2% rate. The tax will be computed based upon the proportion of time that the property will be used in Virginia to its overall useful life.
Effective Date: March 30, 1988
Chapter: 379
Code Affected: 58.1-604.1, 58.1-604.2 and 58.1-604.3
DIESEL FUEL EXCISE TAX:
Senate Bill 312 clarifies that the sales and use tax does not apply to the federal excise tax on diesel fuel if the excise tax is separately stated by the vendor.
Effective Date: April 1, 1988
Chapter: 899
Code Affected: 58.1-602
EXEMPTION FOR TELECOMMUNICATIONS ENTITIES:
Senate Bill 312 clarifies that telecommunications entities which become subject to the corporate in-come tax (in lieu of the gross receipts tax) will continue to be entitled to the sales and use tax exemption which they currently enjoy.
Effective Date: July 1, 1988
Chapter: 899
Code Affected: 58.1-608
REPORTING OF SALES TAX DATA TO TOWNS:
Senate Bill 311 authorizes any town to require that sales and use tax dealers within the town furnish an annual statement of the amount of tax collected or assessed which is attributable to the town. This in-formation would be published in the Comparative Report of Local Government Expenditures published by the Auditor of Public Accounts.
Effective Date: July 1, 1988
Chapter: 456
Code Affected: 58.1-3128.1
SALES AND USE TAX EXPENDITURE STUDY:
Senate Joint Resolution 70 requires the Secretary of Finance to conduct an expenditure study of sales and use tax exemptions. Prior to the 1989 General Assembly session a report on criteria for evaluating existing exemptions will be provided to a joint Sub-committee studying the issue. Senate Bill 314 provides the Tax Commissioner with the authority to require from any person information relating to the evaluation of exempt purchases or sales, information relating to the qualification for exempt purchases, and information relating to direct or indirect government assistance which the person receives.
Effective Date: July 1, 1988
Chapter: 457
Code Affected: 58.1-601
Watercraft Sales And Use Tax
PURCHASES BY VOLUNTEER FIRE AND RESCUE SQUADS:
House Bill 745 exempts from the watercraft salts and use tax watercraft purchased by a volunteer rescue squad or volunteer fire department.
Effective Date: Retroactive to July 1, 1986
Chapter: 314
Code Affected: 58.1-1404
Set Off Debt Collection Act
ERRORS IN SET OFF PROGRAM:
House Bill 148 requires that:
• claimant agencies participating in the Set-Off Debt Collection program reimburse the General Fund for interest paid on tax refunds that have been erroneously set off;
• the Department of Taxation provide an annual statement on the operating costs of the set-off debt collection program to the Chairmen of the House and Senate Finance and House Appropriations Committees; and
• the annual statement furnished to legislative committees include the amount of interest paid by claimant agencies as the result of erroneously set off refunds.
Interest will be computed on the amount of income tax refund erroneously withheld at the overpayment rate set forth in Va. Code 58.1-15 and will be calculated in the manner set forth in Va. Code 58.1-1833. The provisions of this bill apply to all claimant agencies, including local governments.
Effective Date: July 1, 1988
Chapter: 331
Code Affected: 58.1-531 and 58.1-531.1
APPLICATION OF FUNDS ON DEPOSIT:
House Bill 1017 and Senate Bill 322 expand the collection remedy provided under the Set Off Debt Collection Act by specifying that a claimant agency may apply any funds that it has on deposit for a debt-or to the payment of any debt that the debtor may owe to the claimant agency. "Funds on deposit" includes funds due a debtor arising from a contractual agreement with a claimant agency, any other funds of a debtor that a claimant agency may have in its possession and overpayments of taxes. For purposes of this bill only, "debtor" includes not only individuals, but also businesses or groups having a delinquent debt or account with any claimant agency. Claimant agencies utilizing this procedure must notify debtors prior to the application of funds on deposit to a debt owed to the claimant agency and are liable for the payment of interest on funds erroneously held by a claimant agency.
Effective Date: July 1, 1988
Chapter: 563 (HB 1017) and 768 (SB 322)
Code Affected: 58.1-535
Grantor's, Recordation and Probate Tax
CONVEYANCE BY CHURCH:
House Bill 628 exempts from the grantor's tax a deed conveying real estate from a church or religious body. The exemption applies only to the grantor's tax and not to other recordation taxes imposed on a deed.
Effective Date: July 1, 1988
Chapter: 429
Code Affected: 58.1-811
EXEMPTION FOR CORPORATE REORGANIZATIONS:
House Bill 806 exempts from the state and local recordation taxes a deed conveying real estate to a corporation in exchange for the corporation's stock when the transaction qualifies as a reorganization under 368(a)(1)(C) of the Internal Revenue Code. In addition, the bill allows clerks of courts to rely on an affidavit for determining whether the reorganization qualifies for exemption.
Effective Date: July 1, 1988
Chapter: 738
Code Affected: 58.1-811 and 58.1-812
PROPERTY IN MULTIPLE JURISDICTIONS:
House Bill 399 changes the procedure for collection of the grantor's tax when property is located in two or more jurisdictions to require each clerk of court to collect only the portion of tax due to his locality.
Effective Date: July 1, 1988
Chapter: 200
Code Affected: 58.1-802
ESCHEAT PROCEEDINGS:
House Bill 67 contains multiple provisions relating to proceedings to escheat real estate on which local taxes have not been paid. Among the provisions is an exemption from all state and local recordation taxes for grants in escheat proceedings.
Effective Date: July 1, 1988
Chapter: 377
- Code Affected: 55-172, 55-175, 55-186 and 55-200
PROBATE TAX EXEMPTION:
Senate Bill 324 increases to $5,000 the amount of an estate which is subject to the $1.00 minimum tax on wills and administration (probate tax). Amounts over $5,000 would be taxed at the rate of $1.00 plus
10 t per $100.
Effective Date: July 1, 1988
Chapter: 292
Code Affected: 58.1-1712
Miscellaneous Provisions
BEER AND BEVERAGE TAX:
House Bill 496 transfers responsibility for ad-ministering the beer and beverage tax from the Department of Taxation to the Department of Alcoholic Beverage Control. The bill also makes several other clarifying amendments to the beer and beverage tax.
Effective Date: July 1, 1988
Chapter: 261
-
- Code Affected: 414, 4-65, 4-66, 4-99, 4-127 through 4-145 and 58.1-700 through 58.1-718
Local Taxes
Real Property, Tax Relief
TAX RELIEF FOR THE ELDERLY AND HANDICAPPED-QUALIFICATION:
House Bill 201 allows the governing body of any locality to establish by ordinance the requirements for applying for tax relief for the elderly and handicapped. The governing body may also provide that such ordinance may include a procedure for later filing of affidavits. The requirements established by ordinance are subject to the requirements of Va. Code 58.1-3211 which deal with restrictions and conditions of combined income and financial worth of the owners and occupants.
Effective Date: July 1, 1988
Chapter: 334
Code Affected: 58.1-3213
TAX RELIEF FOR THE ELDERLY AND HANDICAPPED-FURNISHINGS:
House Bill 204 allows a local government to exclude the value of household furnishings from the computation of combined financial worth in qualifying for real estate tax relief. Household furnishings are defined as furniture, household appliances, and other items typically used in a-home.
Effective Date: July 1, 1988
Chapter: 463
Code Affected: 58.1-3211
TAX RELIEF FOR THE ELDERLY AND HANDICAPED-DISABLED OWNER:
House Bill 357 allows a local government to exclude up to $7,500 of income for an owner who is permanently disabled in making the computation of combined income for purposes of qualifying for tax relief. Currently up to $7,500 of compensation for permanent disability received during the preceding calendar year can be excluded.
Effective Date: July 1, 1988
Chapter: 466
Code Affected: 58.1.3211
Land Use
LAND USE - MINIMUM ACREAGE:
House Bill 165 provides that the minimum acreage requirements for special classifications of real estate shall be determined by adding together the total area of contiguous real estate, excluding recorded sub-division lots, titled in the same ownership. Further, properties separated by a public right of way are considered contiguous.
Effective Date: July 1, 1988
Chapter: 462
Code Affected: 58.1-3233
House Bill 480 provides that roll-back taxes shall be assessed and paid only if the amount of tax exceeds $2.00. Currently there is no minimum tax prescribed.
Effective Date: July 1, 1988
Chapter: 422
Code Affected: 58.1-3237
LAND USE - SPECIAL ASSESSMENT FOR LAND PRESERVATION:
Senate Bill 181 contains comprehensive amendments to the statutes affecting special assessments for land preservation, as follows:
1. Includes in real estate devoted to open space use land used for the public interest and consistent with the local land-use plan under uniform standards prescribed by the Director of the Department of Conservation and Historic Resources
2. Extends current automatic extension of use- value assessments to qualifying land in agricultural or forestall districts
3. Extends the current 2-acre minimum for land in the open space category which is currently applicable only to cities with a specified population density to parcels adjacent to a scenic river, a scenic highway, a Virginia byway, public property in the Virginia Out-door Recreation System, or property in a county or town having a population density greater than 5,000 per square mile
4. Provides that land devoted to open space use may include land in agricultural and forestall districts, land subject to a recorded perpetual easement held by a public body, and land subject to a recorded commitment for a period of not less than 4 nor more than 10 years made by the owner with the local governing body subject to uniform standards prescribed by the Director of the Department of Conservation and Natural Resources
5. Provides that no application may be required due to change in acreage when the change occurs solely as a result of a conveyance necessitated by governmental action or condemnation of a portion of the land now subject to use-value taxation
6. Provides that the revalidation fee may equal but not exceed the current application fee
7. Permits use-value taxation to continue without imposition of the roll-back tax when use of a parcel shifts to another qualifying use
8. Provides for taxing land that is changed or zoned to a nonqualifying use at its fair market value for the year in which the change occurs
9. Clarifies that the treasurer shall impose a penalty and interest on the amount of the roll-back tax, including interest for prior years, when a roll-back tax becomes delinquent
- Effective Date: (applicable to Items 1-9): January 1, 1989
Effective Date: July 1, 1988
Chapter: 695
Code Affected: 58.1-3230, 58.1-3231, 58.1-3233, 58.1-3234, 58.1-3237, & 58.1-3241
Real Property Tax - General Administration
EXEMPTIONS - PUBLICATIONS AND COSTS
House bill 190 requires that notice of the public hearing on any property tax exemption resolution be published once in a newspaper of general circulation in the county, city or town where the real property is located. The public hearing may not be held until a minimum of five days after the notice is published in the newspaper. Additionally, the local governing body may collect the cost of newspaper publication from the organization requesting the property tax exemption.
Effective Date: July 1, 1988
Chapter: 257
Code Affected: 30.19.04
ASSESSMENTS - BOARD OF ASSESSORS:
Senate Bill 281 allows the membership of any board of assessors appointed by a county or city to be expanded to include one member from each magisterial district. Boards may now consist of no fewer than three members nor more than one member from each magisterial district.
Effective Date: July 1, 1988
Chapter: 896
Code Affected: 58.1-3275
ASSESSMENTS - COOPERATIVE APARTMENT UNITS:
House Bill 355 requires individual units in cooperative apartment units be individually assessed and taxed in the same manner as condominium units. Assessors are also allowed to require the declarants, associations, master associations and proprietary lessees' associations to furnish, on request, a statement listing all transfers of the units over a period of time and a statement listing all owners. This information must be held in confidence by the assessors. Multi-unit cooperative apartment complexes which have been continually in use as such since December 1,1967 are excluded from these provisions.
Effective Date: July 1, 1988
Chapter: 12
Code Affected: 55-428
ASSESSMENTS - LAND AND IMPROVEMENTS:
House Bill 716 provides that when a public service corporation or a political subdivision of the Commonwealth does not own the land and the improvements thereon, the land and improvements may be assessed separately. Improvements include leasehold improvements owned by the lessee which are to be removed by the lessee at the end of the lease term. Under prior law, land and improvements were assessed separately only when the land was owned by a public service corporation or a political subdivision of the Commonwealth and the improvements were owned by another entity.
Effective Date: January 1, 1988
Chapter: 280
Code Affected: 58.1-3282
COLLECTION - NOTICE OF SALE FOR DELINQUENT TAXES:
House Bill 391 requires that an additional notice of sale for delinquent taxes be sent to the owner at the address of the property if known address, but fly if the property is listed with the post office by a numbered and named street address.
Effective Date: July 1,1988
Chapter: 306
Code Affected: 58.1-3965
COLLECTION - RELEASE OF LIENS:
House Bill 639 allows the treasurer as well as an individual to apply to the commissioner of the revenue to determine the amount of tax or assessment properly charged against the portion of real estate purchased or acquired by the individual for the purposes of releasing the tax lien on such portion of real estate.
Effective Date: July 1, 1988
Chapter: 277
Code Affected: 58.1-3226.1
TAX INCREMENT FINANCING:
House Bill 240 authorizes localities to use tax increment financing as a method of financing economic development projects. Localities would designate a blighted area as a development project area. They would determine the "base assessed value" of real estate within the area. Each year, the local assessing officer would determine the, "current assessed value" of real estate in the development project area. The "tax increment" would be the amount by which the "current assessed value" exceeds the "base assessed value." Real estate taxes attributable to the increased value between the "cur-rent assessed value" of any parcel and the "base assessed value" of such real estate would be paid into special fund called the "Tax Increment Financing Fund." Money from the fund would be used to pay the principal and interest on bonds, loans or other debts incurred to finance the development project costs.
Effective Date: July 1, 1988
Chapter: 776
Code Affected: 58.1-3245, 58.1-3245.1, 58.1-3245.2, 58.1-3245.3, 58.1-3245.4
and 58.1-3245.5
Tangible Personal Property Tax
CLASSIFICATION OF VANS:
House Bill 306 defines as a separate classification for local taxation, privately owned vans with a seating capacity of 12 or more persons used exclusively pursuant to a ride-sharing arrangement as defined in Va. Code 46.1-556. Vans owned or leased to transport persons for profit shall be classified as automobiles.
Effective Date: July 1, 1988
Chapter: 822
Code Affected: 58.1-3506
MINIMUM TAX:
House Bill 661 allows the governing body of any locality to provide that if an assessment of tangible personal property would result in a tax of less than $5.00> it may be omitted from the personal property tax book and no assessment of tax made. Currently, property may be omitted only if the tax is less than $1.00.
Effective Date: July 1, 1988
Chapter: 430
Code Affected: 58.1-3001
PRORATION:
Senate Bill 65 and House Bill 386 add the County of Rockingham and the City of Fairfax 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: January 1, 1988
Chapter: 466
Code Affected: 58.1-3516
Local License Tax
AFFILIATED CORPORATIONS:
Senate Bill 105 exempts from the local license tax "brother-sister" intercompany transactions. "Brother-sister" controlled groups are defined as two or more shares of all classes of the stock of each corpora) and (ii) more than 50 % of the total combined voting power of all classes of stock entitled to vote or more than 50 % of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each person only to the extent such ownership is identical with respect to each such corporation.
Effective Date: July 1, 1988
Chapter: 480
Code Affected: 58.1-3703
INDUSTRIAL LOAN ASSOCIATIONS:
House Bill 445 limits to $500 the local license tax which may be imposed on industrial loan associations.
Effective Date: July 1, 1988
Chapter: 419
Code Affected: 58.1-3730.1
LOCAL COAL ROAD AND GAS IMPROVEMENT TAX-TRANSFER OF FUNDS:
House Bill 379 permits Buchanan County, in its discretion and with the concurrence of a majority of the members of the Coal and Gas Road Improvement Advisory Committee, to transfer unexpended balances collected from the local Coal and Gas Road Improvement Tax to the county's general fund and spend such funds for site preparation and road improvements directly related to a new state institution which is planned for the county.
- Effective Date: March 1, 1988 (emergency) Expires on Dec. 31, 1988
Chapter: 18
Code Affected: None
LOCAL COAL ROAD AND GAS IMPROVEMENT TAX-NAME CHANGE AND EXPENDITURE OF FUNDS:
House Bill 749 changes the name of the "Local Coal and Gas Road Improvement Tax" to the "Local Coal and Gas Road Improvement and Virginia Coal-field Economic Development Authority Tax."
Further, in those localities which comprise the Virginia Coalfield Economic Development Authority, three-fourths of the revenue collected from the tax will be paid to the local Coal and Gas Road Improvement Fund to be used for improvements to public roads and one-fourth will be paid to the Virginia Coalfield Economic Development Fund.
Effective Date: July 1, 1988
Chapter: 784
Code Affected: 58.1-3713
PRINTING OR PUBLISHING:
House Bill 646 prohibits a locality from levying a local license tax on the printing or publishing of newspapers, magazines, newsletters or other publications which are issued daily or regularly at average intervals not exceeding three months and if the publication's subscription sales are exempt from the sales and use tax.
Effective Date: July 1, 1988
Chapter: 499
Code Affected: 58.1-3703
Consumer Utility Tax
CHURCHES:
Senate Bill 390 prohibits any county with a population of at least 57,500 but no more than 60,000 according to the 1980 United States Census from imposing a consumer utility tax on electric service for a church at a rate which exceeds the residential rate if the church receives the residential service rate from the electric utility. Any church receiving the residential service rate must give written notice to the electric utility that it receives such rate. Henry County is currently the only county which will be affected by this bill.
Effective Date: July 1, 1988
Chapter: 702
Code Affected: 58.1-3814.1
Merchants' Capital Tax
DAILY RENTAL EQUIPMENT:
House Bill 687 delays until July 1,1989 the effective date of the 1987 legislation which reclassifies daily rental equipment from tangible personal property to merchants' capital. The effective date was originally July 1, 1988.
Effective Date: July 1, 1988
Chapter: 729
Code Affected: None
Grantor's Tax
CONVEYANCE BY CHURCH:
See discussion of HB 628 under "State Taxes.
Recordation Tax
COLLECTION OF TAX:
House Bill 460 clarifies the procedure for collecting recordation taxes when property is located in more than one locality. The clerk in the first jurisdiction in which the deed is recorded will collect all of the state recordation tax. The clerks of each jurisdiction in which the deed is recorded will collect only the local tax imposed by the local governing body on the proportion of the value of the property within the locality.
Effective Date: July 1, 1988
Chapter: 421
Code Affected: 58.1-812, 58.1-3801 and 58.1-3803
EXEMPTION FOR CORPORATE REORGANIZATIONS:
See discussion of HB 806 under "State Taxes."
ESCHEAT PROCEEDINGS:
See discussion of HB 67 under "State Taxes."
Miscellaneous Provisions
CORRECTION OF ERRONEOUS ASSESSMENTS:
House Bill 792 changes the statute of limitations for appeal of a local tax assessment to allow a tax-payer to file an appeal to the circuit court within three years from the last day of the year in which the assessment is made rather than three years from the last day of the year for which the assessment is made.
Effective Date: July 1, 1988
Chapter: 282
Code Affected: 58.1-3984
PAYMENT OF FEES BY CREDIT CARD; LIMITATIONS ON SERVICE CHARGE:
House Bill 640 allows the governing body of any locality to authorize, by ordinance, the treasurer to accept payment of other fees as well as local taxes by credit card. The amount charged to the taxpayer as a service charge may not exceed the amount charged to the locality.
Effective Date: July 1, 1988
Chapter: 278
Code Affected: 58.1-3013
PUBLICATION OF DELINQUENT TAXPAYER LIST:
Senate Bill 370 provides that the publication costs of the delinquent taxpayer list shall be paid by the taxpayers listed. The amount payable is determined by dividing the total cost incurred per thirty-day period by the number of delinquent taxpayers listed per thirty-day period.
Effective Date: July 1, 1988
Chapter: 699
Code Affected: 58.1-3924
INDEX
Va. Code Bill No. Subject Page
4-44 HB 496 Beer and Beverage Tax 10
4-65 HB 496 Beer and Beverage Tax 10
4-66 HB 496 Beer and Beverage Tax 10
4-99 HB 496 Beer and Beverage Tax 10
4-127-4-145 HB 496 Beer and Beverage Tax 10
23-38.72 HB 175 Virginia Tuition Savings Program 4
23-38.73 HB 175 Virginia Tuition Savings Program 4
30-19.04 HB 190 Exemptions-Publication and Costs 13
55-172 HB 67 Escheat Proceedings 9
55-175 HB 67 Escheat Proceedings 9
55-186 HB 67 Escheat Proceedings 9
55-200 HB 67 Escheat Proceedings 9
55-428 HB 355 Cooperative Apartment Units 13
58.1-322 HB 916 Crime Solver Rewards: Subtraction 2
58.1-322 HB 223 Lump sum Distributions 3
58.1-322 HB 910 Retirement Income Deduction 3
58.1-322 SB 6 Retirement Income Deduction 3
58.1-323.1 SB 441 ACRS: Recovery of Outstanding Amounts 4
58.1-330 HB 910 Retirement Income Deduction 3
58.1-330 SB 6 Retirement Income Deduction 3
58.1-333 SB 312 Telecommunications Companies-Income Tax 5
58.1-345.1 HB 197 Check-Off: Open Space Recreation 2
58.1-346.1 HB 257 Check-Off: U.S. Olympic Committee 2
58.1-346.1 HB 990 Check-Off: Housing Fund 2
58.1-392 HB 242 Repeal of Partnership Filing Requirements 6
58.1-393 HB 242 Repeal of Partnership Filing Requirements 6
58.1-394 HB 242 Repeal of Partnership Filing Requirements 6
58.1-400.1 SB 312 Telecommunications Companies-Income Tax 5
58.1-401 HB 222 Taxation of S Corporations 4
58.1-401 SB 312 Telecommunications Companies-Income Tax 5
58.1-403 SB 312 Telecommunications Companies-Income Tax 5
58.1-430 SB 312 Telecommunications Companies-Income Tax 5
58.1-433 HB 748 Coal Cogeneration Credit 4
58.1-433 SB 312 Telecommunications Companies-Income Tax 5
58.1-441 HB 1056 Crime Solver Rewards: Disclosure 3
58.1-460 HB 221 Estimated Income Tax Filing Threshold 5
58.1-472 SB 312 Withholding Tax: Eighth Monthly Filing 5
58.1-531 HB 148 Errors in Set-Off Program 7
58.1-531.1 HB 148 Errors in Set-Off Program 7
58.1-535 HB 1017 Application of Funds on Deposit 8
58.1-535 SB 322 Application of Funds on Deposit 8
58.1-601 SB 314 Tax Expenditure Study: Information 7
58.1-602 SB 312 Diesel Fuel Excise tax 6
58.1-604.1 HB 555 Contractors’ Use Tax 6
58.1-604.2 HB 555 Contractors’ Use Tax 6
58.1-604.3 HB 555 Contractors’ Use Tax 6
58.1-608 SB 312 Telecommunications Entities: Sales and 6
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-
-
-
-
- Use Tax Exemption
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-
-
-
58.1-718 HB 496 Beer and Beverage Tax 10
58.1-802 HB 399 Property in Multiple Jurisdictions 9
58.1-811 HB 628 Conveyance by Church 8
58.1-811 HB 806 Exemption for Corporate Reorganization 9
58.1-812 HB 806 Exemption for Corporate Reorganization 9
58.1-812 HB 460 Collection of Recordation Tax 17
58.1-1404 HB 745 Watercraft Purchased by Fire/Rescue Squads 7
58.1-1712 SB 334 Probate Tax Exemption 9
58.1-2600 HB 748 Coal Cogeneration Credit 4
58.1-2600 SB 312 Telecommunications Companies-Income Tax 5
58.1-2605 SB 312 Telecommunications Companies-Income Tax 5
58.1-2608 SB 312 Telecommunications Companies-Income Tax 5
58.1-2621 SB 312 Telecommunications Companies-Income Tax 5
58.1-2622 SB 312 Telecommunications Companies-Income Tax 5
58.1-2623 SB 312 Telecommunications Companies-Income Tax 5
58.1-2624 SB 312 Telecommunications Companies-Income Tax 5
58.1-2625 SB 312 Telecommunications Companies-Income Tax 5
58.1-2628 SB 312 Telecommunications Companies-Income Tax 5
58.1-2629 SB 312 Telecommunications Companies-Income Tax 5
58.1-2631 SB 312 Telecommunications Companies-Income Tax 5
58.1-2633 SB 312 Telecommunications Companies-Income Tax 5
58.1-2640 SB 312 Telecommunications Companies-Income Tax 5
58.1-2647 SB 312 Telecommunications Companies-Income Tax 5
58.1-2648 SB 312 Telecommunications Companies-Income Tax 5
58.1-2650 SB 312 Telecommunications Companies-Income Tax 5
58.1-2651 SB 312 Telecommunications Companies-Income Tax 5
58.1-2660 SB 312 Telecommunications Companies-Income Tax 5
58.1-3001 HB 661 Minimum Tangible Personal Property Tax 15
58.1-3013 HB 640 Payment of Fees by Credit Card 18
58.1-3128.1 SB 311 Reporting of Sales Tax Data to Towns 7
58.1-3211 HB 204 Tax Relief-Exclusion for Furnishings 11
58.1-3211 HB 357 Tax Relief-Exclusion for Disabled Owner 11
58.1-3213 HB 201 Qualification for Tax Relief 11
58.1-3226.1 HB 639 Release of Liens 14
58.1-3230 SB 181 Land Use-Special Assessment for Preservation 13
58.1-3231 SB 181 Land Use-Special Assessment for Preservation 13
58.1-3233 HB 165 Land Use-Minimum Acreage 11
58.1-3233 SB 181 Land Use-Special Assessment for Preservation 13
58.1-3234 SB 181 Land Use-Special Assessment for Preservation 13
58.1-3237 HB 480 Land Use-Roll-Back Taxes 12
58.1-3237 SB 181 Land Use-Special Assessment for Preservation 13
58.1-3241 SB 181 Land Use-Special Assessment for Preservation 13
58.1-3245.3 -
58.1-3245.5 HB 240 Tax Increment Financing 14
58.1-3275 SB 281 Board of Assessors 13
58.1-3282 HB 716 Assessment of Land and Improvements 14
58.1-3506 HB 306 Classification of Rideshare Vans 15
58.1-3516 SB 65 Proration of Tangible Personal Property Tax 15
58.1-3516 HB 386 Proration of Tangible Personal Property Tax 15
58.1-3703 SB 105 Affiliated Corporations 15
58.1-3703 HB 646 Printing or Publishing 16
58.1-3713 HB 749 Change Name of Local Coal Road Tax 16
58.1-3730.1 HB 445 Industrial Loan Associations 16
58.1-3801 HB 460 Collection of Recordation Tax 17
58.1-3814.1 SB 390 Churches 17
58.1-3924 SB 370 Publication of Delinquent Taxpayer List 18
58.1-3965 HB 391 Notice of Sale for Delinquent Taxes 14
58.1-3984 HB 792 Correction of Erroneous Assessments 18
Rulings of the Tax Commissioner