HB2746: Real estate tax; assessment of real property by localities.
Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-540 and 58.1-548 of the Code of Virginia are amended and reenacted as follows:
§ 58.1-540. Levy of the tax.
A. Any Every county
having a population of more than 500,000, as
determined by the 1980 U.S. Census, any county or city adjacent thereto, and
any and city contiguous to such
an adjacent county or city, or any city with a population of at least 265,000,
is hereby authorized to may levy a local income tax at any increment of
one-quarter percent up to a maximum
rate of one percent rates
and brackets as determined by the
local governing body in accordance with subsection C and
imposed upon the Virginia taxable income as determined in §
58.1-322 for an individual, § 58.1-361 for a fiduciary of an estate or trust,
or § 58.1-402 for a corporation, for each taxable year of every resident of
such county or city or corporation having income from sources within such
county or city, subject to the limitations of subsection B of this section, provided
the amount of revenues
collected from the real property tax imposed
by the county or city pursuant to Article 1 (§
58.1-3200 et seq.) of Chapter 32 is frozen as of the
date of adoption of the local property tax.The same rate shall
apply to individuals, fiduciaries, and
corporations.
B. The authority to levy a local income tax as provided in subsection A may be exercised by a county or city governing body only if approved in a referendum within the county or city. The referendum shall be held in accordance with § 24.2-684. The referendum may be initiated either by a resolution of the governing body of the county or city or on the filing of a petition signed by a number of registered voters of the county or city equal in number to ten percent of the number of voters registered in the county or city on January 1 of the year in which the petition is filed with the circuit court of such county or city. The clerk of the circuit court shall publish notice of the election in a newspaper of general circulation in the county or city once a week for three consecutive weeks prior to the election. The ballot used shall be printed to read as follows:
"Shall the governing body of (...name of county or
city...) have the authority to levy a local income tax of up to one percent
for transportation purposes in accordance with § 58.1-540 of the
Code of Virginia?
[] Yes
[] No"
If the voters by a majority vote approve the authority of the
local governing body to levy a local income tax, the tax may be imposed by
with the adoption of an ordinance by
the governing body of the county or city in accordance with general or special
law, and the tax may be thereafter enacted, modified or repealed as any other
tax the governing body is empowered to levy subject only to the limitations
herein. No ordinance levying a local income tax shall be repealed unless and
until all debts or other obligations of the county or city to which such
revenues are pledged or otherwise committed have been paid or provision made
for payment.
C. The county or city shall continue to assess real property as provided in Articles 5 (§ 58.1-3250 et seq.), 6 (§ 58.1-3270 et seq.), and 7 (§ 58.1-3280 et seq.) of Chapter 32 and shall determine the additional amount of real property tax revenues that would have been collected if the real property tax had been imposed on such assessments. The local governing body shall then adopt income tax rates and bracket amounts that will allow the county or city to collect local income tax revenues in an amount equal to the difference between the amount it actually collected in real property tax revenues and the amount it would have collected if the county or city had not imposed a local income tax. The local governing body shall publish such rates and brackets no later than January 1 of each year in which it imposes a local income tax.
§ 58.1-548. Disposition of revenues; costs of administration.
A. All local income tax revenues collected by the Tax Commissioner pursuant to this article shall be paid into the General Fund of the state treasury.
B. Such revenues shall be transferred monthly by the Comptroller to a special fund entitled "Collections of Local Income Taxes," upon certification of such amounts by the Tax Commissioner.
C. As soon as practicable after the last day of each calendar quarter, the Comptroller shall pay over and distribute to each county and city the local income tax revenues to be estimated by the Tax Commissioner. The Tax Commissioner shall reconcile such estimates during the month following the close of the fiscal year for those returns on file for the preceding taxable year.
D. The direct costs of state administration of the local income tax as certified to the Comptroller by the Department of Taxation shall be deducted on a prorated basis from the distributions to each county and city under subsection C of this section. In determining each county's or city's prorated share of administrative costs, the Comptroller shall apportion the total administrative costs in the ratio which the revenues of each county or city bear to the total local income tax revenues distributed. The direct costs for local administration of the local income tax shall be paid entirely from the local revenues of the county or city.
E. All revenues distributed to a county or city
under subsection C of this section shall be applied and expended for
transportation purposes, including, without limitation, construction,
administration, operation, improvement, maintenance and financing of
transportation facilities.
As used in this section, the term
"transportation facilities" shall include all transportation related
facilities including, but not limited to, all highway systems, public
transportation or mass transit systems as defined in § 33.1-12, airports as
defined in § 5.1-1, and port facilities as defined in § 62.1-140. Such term
shall be liberally construed for purposes of this section.
Any county or city that levies a local income tax
under this article shall not reduce the total amount of its annual general fund
appropriations, exclusive of the revenues derived from the tax levied under
this article, for transportation purposes below the total amount appropriated
for those purposes in the fiscal year preceding the adoption of the ordinance
levying the tax.
Revenues derived by a county or city from the local
income tax levied under this article shall be in addition to those allocated to
the county or city from state transportation funds, which allocations shall not
be reduced as a result of any revenues received hereunder.
F. If any revenues distributed to a county or city
under subsection C of this section are applied or expended for any
transportation facilities under the control and jurisdiction of any state
agency, board, commission or authority, such transportation facilities shall be
constructed, operated, administered, improved and maintained in accordance with
laws, rules, regulations, policies and procedures governing said state agency,
board, commission or authority; provided, however, that in the event these
revenues, or a portion thereof, are expended for improving or constructing
highways in a county which is subject to the provisions of § 33.1-75.3, such
expenditures shall be undertaken in the manner prescribed in that statute.
2. That § 58.1-549 of the Code of Virginia is repealed.
3. That the provisions of this act shall become effective on January 1, 2008.