Income tax, state; conformity of taxation system with the IRC, taxable income deductions, etc. (HB2529)
Introduced By
Del. Tim Hugo (R-Centreville) with support from 9 copatrons, whose average partisan position is:
Those copatrons are Del. Dickie Bell (R-Staunton), Del. Mark Cole (R-Fredericksburg), Del. Chris Collins (R-Winchester), Del. Todd Gilbert (R-Woodstock), Del. Chris Jones (R-Suffolk), Del. Joe McNamara (R-Roanoke), Del. Chris Peace (R-Mechanicsville), Del. Nick Rush (R-Christiansburg), Del. Lee Ware (R-Powhatan)
Progress
✓ |
Introduced |
✓ |
Passed Committee |
✓ |
Passed House |
✓ |
Passed Senate |
✓ |
Signed by Governor |
☐ |
Became Law |
Description
Income tax; conformity. Advances conformity of the Commonwealth's tax code with the federal tax code to December 31, 2018, effective starting in taxable year 2018. Starting in taxable year 2019, the bill deconforms from the provisions of the federal Tax Cuts and Jobs Act (TCJA) that limit the deduction for state and local taxes and that suspend the overall limit on itemized deductions. The bill establishes income tax subtractions starting in taxable year 2018 for Global Intangible Low-Taxed Income (GILTI) and for one-fifth of the amount of business interest that is disallowed as a deduction from federal income tax. The bill increases the standard deduction to $4,500 for single individuals and $9,000 for married persons filing jointly for taxable years 2019 through 2025. Under current law, the standard deduction is $3,000 for single individuals and $6,000 for married couples filing jointly. The bill provides for a refund, not to exceed a taxpayer's tax liability of up to $110 for individuals and $220 for married persons filing a joint return. The refund will be issued in October 2019 and will be available only for a taxpayer filing a final return by July 2019. The refunds will be reduced and prorated if the additional revenues generated by the TCJA are insufficient to fully fund the refunds. The bill establishes the Taxpayer Relief Fund (the Fund). For fiscal years 2019 through 2025, any additional revenues attributable to the TCJA, beyond those necessary to fund the provisions of the bill, would accrue to the Fund. The bill directs the General Assembly to appropriate money from the Fund to enact permanent or temporary tax reform measures. The bill contains an emergency clause and is identical to SB 1372. Read the Bill »
Outcome
History
Date | Action |
---|---|
01/09/2019 | Committee |
01/09/2019 | Prefiled and ordered printed; offered 01/09/19 19104278D |
01/09/2019 | Referred to Committee on Rules |
01/22/2019 | Impact statement from TAX (HB2529) |
01/23/2019 | Referred from Rules |
01/23/2019 | Referred to Committee on Finance |
01/25/2019 | Fiscal impact review from JLARC (HB2529) |
01/27/2019 | Impact statement from TAX (HB2529) |
01/28/2019 | House committee, floor amendments and substitutes offered |
01/28/2019 | Reported from Finance with substitute (12-Y 10-N) (see vote tally) |
01/28/2019 | Committee substitute printed 19104698D-H1 |
01/30/2019 | Read first time |
01/31/2019 | Passed by for the day |
02/01/2019 | Read second time |
02/01/2019 | Passed by temporarily |
02/01/2019 | Committee substitute agreed to 19104698D-H1 |
02/01/2019 | Pending question ordered |
02/01/2019 | Engrossed by House - committee substitute (51-Y 43-N) HB2529H1 |
02/01/2019 | VOTE: ENGROSSMENT (51-Y 43-N) (see vote tally) |
02/04/2019 | Passed by temporarily |
02/04/2019 | Motion to pass by until end of calendar agreed to |
02/04/2019 | Passed by for the day |
02/05/2019 | Motion to pass by temporarily until completion of HB2355 agreed to |
02/05/2019 | Pending question ordered |
02/05/2019 | Read third time and passed House (51-Y 48-N) |
02/05/2019 | VOTE: PASSAGE (51-Y 48-N) (see vote tally) |
02/06/2019 | Constitutional reading dispensed |
02/06/2019 | Referred to Committee on Finance |
02/07/2019 | Impact statement from TAX (HB2529H1) |
02/08/2019 | Reported from Finance with substitute (14-Y 0-N) (see vote tally) |
02/08/2019 | Committee substitute printed 19106602D-S1 |
02/08/2019 | Incorporates HB2355 (Jones, S.C.) |
02/08/2019 | Read second time |
02/11/2019 | Read third time |
02/11/2019 | Passed by temporarily |
02/11/2019 | Reading of substitute waived |
02/11/2019 | Committee substitute rejected 19106602D-S1 |
02/11/2019 | Floor substitute printed 19106700D-S2 (Newman) |
02/11/2019 | Substitute by Senator Newman agreed to 19106700D-S2 |
02/11/2019 | Engrossed by Senate - floor substitute HB2529S2 |
02/11/2019 | Passed Senate with substitute (35-Y 5-N) (see vote tally) |
02/12/2019 | Placed on Calendar |
02/12/2019 | Read third time |
02/12/2019 | Senate substitute agreed to by House 19106700D-S2 (95-Y 4-N) |
02/12/2019 | Emergency clause added |
02/12/2019 | VOTE: ADOPTION EMERGENCY (95-Y 4-N) (see vote tally) |
02/12/2019 | Enrolled |
02/12/2019 | Bill text as passed House and Senate (HB2529ER) |
02/12/2019 | Impact statement from TAX (HB2529ER) |
02/12/2019 | Signed by Speaker |
02/13/2019 | Signed by President |
02/13/2019 | Enrolled Bill communicated to Governor on February 13, 2019 |
02/13/2019 | G Governor's Action Deadline Midnight, February 20, 2019 |
02/15/2019 | G Approved by Governor-Chapter 17 (effective 2/15/19) |
02/15/2019 | G Acts of Assembly Chapter text (CHAP0017) |
Comments
Yes to tax conformity
To Adjust for inflation you need to almost double the standard deduction