Income tax, state; indexing, Chained Consumer Price Index for All Urban Consumers. (HB735)

Introduced By

Del. Vivian Watts (D-Annandale) with support from co-patron Del. Joe McNamara (R-Roanoke)

Description

Virginia income tax; indexing; Chained Consumer Price Index for All Urban Consumers. Adjusts Virginia's standard deduction beginning in taxable year 2020 by the percentage increase in the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the previous taxable year. For taxable years on and after 2026, the standard deduction would return to $3,000 for an individual or a married person filing a separate return and $6,000 for married persons filing jointly, coincident with the expiration of the individual income tax provisions of the federal Tax Cuts and Jobs Act, but would be adjusted by the percentage increase in the C-CPI-U for the previous taxable year. Beginning in taxable year 2020, the individual tax brackets and the personal deductions will also be adjusted by the percentage increase of the C-CPI-U for the previous taxable year. Read the Bill »

Outcome

History