Income tax, state; imposes surtax on taxable income to provide new source of revenue for localities. (SB543)

Introduced By

Sen. Chuck Colgan (D-Manassas)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Income tax surtax to fund car tax relief. Imposes a state individual income tax surtax to provide a new source of revenue for localities to encourage them to essentially remove the tangible personal property tax on vehicles that currently qualify under the car tax relief program. The surtax on Virginia taxable income would be imposed at the rate of 0.5% for tax year 2010 and at the rate of 1% for subsequent tax years.

Revenues from the surtax would be dedicated to a new Virginia Personal Property Tax Replacement Fund ("Fund"). For tax year 2010, the car tax relief program would operate as under current law, except that annual $950 million to localities would be paid from the Fund.

For tax years 2011 and thereafter, localities that impose a personal property tax rate on qualifying vehicles not exceeding $0.000001 per $100 of assessed value would receive all of the net revenues from the surtax. Allocations to each such locality would be based upon its pro rata share of the personal property tax relief paid in tax year 2009. In addition, localities that have tax rates not exceeding $0.000001 for tax year 2011 would receive an additional payment for tax year 2010 that represents the remaining net revenues from the new surtax after the payment of the $950 million state personal property tax relief payment. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/13/2010Prefiled and ordered printed; offered 01/13/10 10103833D
01/13/2010Referred to Committee on Finance
01/24/2010Impact statement from TAX (SB543)
02/16/2010Left in Finance