HB1358: Income tax, state; eliminating liability.
HOUSE BILL NO. 1358
Be it enacted by the General Assembly of Virginia:
1. That §§ 58.1-320, 58.1-321, 58.1-360, and 58.1-390.2 of the Code of Virginia are amended and reenacted as follows:
§ 58.1-320. Imposition of tax.
A A. For taxable years beginning before January 1,
2020, a tax is hereby annually imposed on the Virginia
taxable income for each taxable year of every individual as follows:
Two percent on income not exceeding $3,000;
Three percent on income in excess of $3,000, but not in excess of $5,000;
Five percent on
income in excess of $5,000, but not in excess of $12,000 for taxable years
beginning before January 1, 1987;
Five percent on
income in excess of $5,000 but not in excess of $14,000 for taxable years
beginning January 1, 1987, through December 31, 1987;
Five percent on
income in excess of $5,000 but not in excess of $15,000 for taxable years
beginning January 1, 1988, through December 31, 1988;
Five percent on
income in excess of $5,000 but not in excess of $16,000 for taxable years
beginning January 1, 1989, through December 31, 1989;
Five percent on income in excess of $5,000,
but not in excess of $17,000 for taxable years
beginning January 1, 1990;
Five and
three-quarters percent on income in excess of $12,000 for taxable years
beginning before January 1, 1987;
Five and
three-quarters percent on income in excess of $14,000 for taxable years
beginning January 1, 1987, through December 31, 1987;
Five and
three-quarters percent on income in excess of $15,000 for taxable years
beginning January 1, 1988, through December 31, 1988;
Five and
three-quarters percent on income in excess of $16,000 for taxable years
beginning January 1, 1989, through December 31, 1989; and
Five and three-quarters percent on income in excess of $17,000 for taxable years beginning on and after January
1, 1990.
B. For taxable years beginning on and after January 1, 2020, a tax is hereby annually imposed on all Virginia taxable income for each taxable year of every individual at a rate of zero percent.
§ 58.1-321. Exemptions and exclusions.
A. No For taxable years beginning before January 1,
2020, no tax levied pursuant to § 58.1-320 is imposed, nor
any return required to be filed, by:
1. A single individual where the Virginia adjusted gross income plus the modification specified in subdivision 5 of § 58.1-322.03 for such taxable year is less than $11,650 for taxable years beginning on and after January 1, 2010, but before January 1, 2012.
A single individual where the Virginia adjusted gross income plus the modification specified in subdivision 5 of § 58.1-322.03 for such taxable year is less than $11,950 for taxable years beginning on and after January 1, 2012.
2. An individual and spouse if their combined Virginia adjusted gross income plus the modification specified in subdivision 5 of § 58.1-322.03 is less than $23,300 for taxable years beginning on and after January 1, 2010 (or one-half of such amount in the case of a married individual filing a separate return) but before January 1, 2012, and less than $23,900 for taxable years beginning on and after January 1, 2012 (or one-half of such amount in the case of a married individual filing a separate return).
For the purposes of this section, "Virginia adjusted gross income" means federal adjusted gross income for the taxable years with the modifications specified in §§ 58.1-322.01 and 58.1-322.02.
B. For taxable years beginning on and after January 1, 2020, no return shall be required to be filed by any individual.
C. Persons in the Armed Forces of the United States stationed on military or naval reservations within Virginia who are not domiciled in Virginia shall not be held liable to income taxation for compensation received from military or naval service.
§ 58.1-360. Imposition of tax.
A tax is hereby annually imposed,
at the rates prescribed by § 58.1-320 for individuals, on
the Virginia taxable income for each taxable year of every estate and trust as follows:
Two percent on income not exceeding $3,000;
Three percent on income in excess of $3,000, but not in excess of $5,000;
Five percent on income in excess of $5,000, but not in excess of $17,000; and
Five and three-quarters percent on income in excess of $17,000.
§ 58.1-390.2. Taxation of pass-through entities.
Except as provided
for in this article, owners A. For taxable years
beginning on and after January 1, 2020, owners of
pass-through entities shall not
be liable for tax under this chapter only
in their separate or individual capacities; on income passed through to the owners of
pass-through entities however, a
pass-through entity itself shall be liable for
taxes on income that for federal tax purposes would be passed through
to the owners of such pass-through entity. A tax is hereby annually imposed on the Virginia
taxable income for each taxable year of every pass-through
entity as follows:
Two percent on income not exceeding $3,000;
Three percent on income in excess of $3,000, but not in excess of $5,000;
Five percent on income in excess of $5,000, but not in excess of $17,000; and
Five and three-quarters percent on income in excess of $17,000.
B. Any taxes imposed on the pass-through entity itself, such as, but not limited to, sales and use taxes, withholding taxes with respect to employees or nonresident owners, and minimum taxes in lieu of income taxes, shall be paid by the pass-through entity.