Coal tax; limits aggregate amount of credits that may be allocated or claimed for employment, etc. (SB1470)

Introduced By

Sen. Ben Chafin (R-Lebanon) with support from co-patrons Del. Ron Villanueva (R-Virginia Beach), and Sen. Bill Carrico (R-Grayson)

Progress

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

Description

Coal tax credits. Reinstates the Virginia coal employment and production incentive tax credit. The credit, which expired on July 1, 2016, could be earned on and after January 1, 2017, but before January 1, 2022. The bill limits the aggregate amount of credits that may be allocated or claimed for the coal employment and production incentive tax credit in each fiscal year to $7.3 million. An electricity generator must file an application with the Department of Taxation each year to determine the amount of credits that it may claim or allocate, including credits earned in prior taxable years. If the total amount of credits earned in a taxable year exceeds $7.3 million, the Department of Taxation shall apportion the credits on a pro rata basis. The bill also extends the sunset date of the coalfield employment enhancement tax credit through taxable years beginning before January 1, 2022. Amends § 58.1-433.1, § 58.1-439.2, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/16/2017Presented and ordered printed 17103387D
01/16/2017Referred to Committee on Finance
01/21/2017Impact statement from TAX (SB1470)
01/22/2017Impact statement from TAX (SB1470)
01/24/2017Impact statement from TAX (SB1470)
01/31/2017Reported from Finance with amendment (11-Y 4-N) (see vote tally)
02/01/2017Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/02/2017Read second time
02/02/2017Reading of amendment waived
02/02/2017Committee amendment agreed to
02/02/2017Engrossed by Senate as amended SB1470E
02/02/2017Printed as engrossed 17103387D-E
02/03/2017Read third time and passed Senate (25-Y 15-N) (see vote tally)
02/08/2017Placed on Calendar
02/08/2017Read first time
02/08/2017Referred to Committee on Finance
02/09/2017Impact statement from TAX (SB1470E)
02/13/2017Reported from Finance (15-Y 6-N) (see vote tally)
02/14/2017Read second time
02/15/2017Read third time
02/15/2017Passed House (68-Y 29-N 1-A)
02/15/2017VOTE: PASSAGE (68-Y 29-N 1-A) (see vote tally)
02/17/2017Enrolled
02/17/2017Bill text as passed Senate and House (SB1470ER)
02/17/2017Signed by Speaker
02/18/2017Impact statement from TAX (SB1470ER)
02/20/2017Signed by President
02/21/2017Enrolled Bill Communicated to Governor on 2/21/17
02/21/2017G Governor's Action Deadline Midnight, March 27, 2017
03/13/2017G Vetoed by Governor
04/05/2017Senate sustained Governor's veto (24-Y 16-N) (see vote tally)
04/05/2017Requires 27 affirmative votes to override veto

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 3 clips in all, totaling 17 minutes.

Transcript

This is a transcript of the video clips in which this bill is discussed.



Sen. Frank Wagner (R-Virginia Beach): CERTAINLY PROBABLY THE VAST MAJORITY WOULD NOT EVEN BE OCCURRING RIGHT NOW BECAUSE THERE WOULD NOT BE THE REVENUE IN THERE HAD WE NOT PUT THE FLOOR IN. WELL, I CAN ASSURE YOU THE SAME THINGS HAVE HAPPENED IN OUR REGIONS. AND I WILL YIELD THE FLOOR IN A MINUTE TO THE SENATOR OF THE CITY OF FAIRFAX, BUT LET ME TELL YOU A LITTLE BIT ABOUT WHAT'S HAPPENED IN HAMPTON ROADS. WE HAVE A SEEN A DROP IN REVENUE COLLECTIONS. MANY OF THE PROJECTS WE'RE LOOKING AT NOW ARE GOING TO BE REQUIRED TO BE TOLLED. AS REVENUES DROPPED, THE AVAILABLE MONEY WE HAD TO ACTUALLY GET THESE CONSTRUCTION PROJECTS ACCOMPLISHED IS GOING DOWN, AND THE COROLLARY TO THAT IS, THE LESS MONEY WE HAVE TO ACTUALLY GET THE ROAD BUILT, THE MORE MONEY WE'LL HAVE TO BORROW TO COMPLETE THE PROJECT. TRANSLATION: THE LESS MONEY WE HAVE TODAY, THE MORE THE TOLLS WILL BE. NOW, LET ME TELL YOU WHAT HAPPENS ONCE YOU DECIDE TO GO UP WITH THE TOLL. WHEN YOU GO UP WITH A TOLL, YOU NOW HAVE THE CARE AND FEEDING OF THE TOLL SYSTEM. YOU ALSO HAVE TO GO OUT IN THE CREDIT MARKET AND BORROW THOSE MONIES, WHICH MEANS THAT FOR EVERYTHING THAT WE DECIDE TO TOLL, WE'RE GOING TO TAKE $2 OUT OF THE TAXPAYERS' PACKET INSTEAD OF THE DOLLAR IF WE JUST DECIDED TO BUILD THE ROAD AND PAY AS YOU GO. BECAUSE WE'RE BORROWING, WE'LL NOW TAKE ANOTHER DOLLAR OUT OF THE TAXPAYERS' POCKET TO PAY WALL STREET FOR THE COST OF THE BONDS AND CARE AND FEEDING OF THE TOLL SYSTEM. I DON'T KNOW HOW YOU FEEL, BUT IF I HAVE THE OPPORTUNITY TO TAKE TWO DOLLARS OUT OF THE TAXPAYERS' PACKET OR A DOLLAR ON CRITICALLY NEEDED INFRASTRUCTURE PROJECTS, I'M UNDER THE YOLK I WANT TO TAKE ONE DOLLAR AND NOT TWO. AND DON'T KID YOURSELF AND DON'T FOOL YOURSELF AND DON'T TRY TO CONVINCE YOURSELF IT'S ANYTHING OTHER THAN THAT THAT, BECAUSE THAT'S WHAT IT IS. AND THE OPPORTUNITY TO SPEAK UP IN LOUDOUN COUNTY EARLIER THIS WEEK, AND THAT EXACT SUBJECT CAME UP. AND I SAID, LOOK WHAT HAPPENS WHEN YOU DON'T COME UP WITH THE MONEY TO ACTUALLY HAVE THE HIGHWAY BUILT. AND I KNOW IT'S A VERY SENSITIVE ISSUE AND I CAN APPRECIATE THE SENSITIVITY OF THE ISSUE FOR THOSE FOLKS THAT LIVE IN LOUDOUN COUNTY WITH THE TOLLS THAT THEY HAVE TO PAY EVERY DAY JUST FOR THE PRIVILEGE OF DRIVING BACK AND FORTH TO DOWNTOWN D.C. AND THOSE TYPES OF THINGS. SO THESE DECISIONS WE MAKE HERE TODAY IMPACT NOT JUST US AND OUR TAXPAYERS AND THE MONEY THAT COME OUT OF THEIR POCKET, BUT IMPACTS THEIR CHILDREN AND THE WAY THESE BONDS GO WILL IMPACT THEIR GRANDCHILDREN AND TAKE $2 OUT OF THE POCKET. I THINK GOD THAT OUR PARENTS MADE THAT DECISION TO PUT A FEDERAL FUELS TAX INTO PLACE UNDER REPUBLICAN PRESIDENT DWIGHT DAVID EISENHOWER TO BUILD AN INTERSTATE HIGHWAY SYSTEM, BECAUSE HAD THEY NOT MADE THAT INVESTMENT ON THE PART OF EACH AND EVERY ONE OF US IN THIS ROOM, HAD THEY NOT MADE THAT INVESTMENT, WHERE WOULD WE BE TODAY? WHERE WOULD COMMERCE BE TODAY