Income tax, state; itemization, standard deduction. (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)

Description

Individual income tax; itemization; standard deduction. Deconforms the Commonwealth's tax code from the provisions of the federal Tax Cuts and Jobs Act (TCJA) that limit the deduction for state and local taxes and reduce the limits for the mortgage interest deduction. The bill allows an individual taxpayer to itemize for state income tax purposes regardless of whether he itemizes on his federal return for taxable years 2019 through 2025. Current law requires a taxpayer to claim the standard deduction on his state return if he claims the standard deduction on his federal return. The bill increases the standard deduction to $4,000 for single individuals and $8,000 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 that any additional revenues generated by the TCJA, beyond those revenues necessary to offset the reduction in revenues resulting from the provisions of the bill, shall be transferred to the Tax Policy Fund, created by the bill, to be used to provide tax reform to Virginia taxpayers starting in fiscal year 2020. Amends § 58.1-301, of the Code of Virginia. Read the Bill »

Status

01/09/2019: Awaiting a Vote in the Rules Committee

History

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