Del. Joe McNamara

Taxation; rate of interest. Provides that (i) the rate of interest on omitted taxes and assessments is equal to the Underpayment Rate established by the Internal Revenue Code and (ii) the rate of interest on refunds is equal to the Overpayment Rate for noncorporate taxpayers established by the Internal Revenue Code. Current law provides that (a) the rate of interest on omitted taxes and assessments is equal to the Underpayment Rate plus two percent and (b) the rate of interest on refunds is equal to the Overpayment Rate for noncorporate taxpayers plus two percent.

Issuance of writ of vacatur for victims of human trafficking. Amends the procedure that allows victims of human trafficking, defined in the bill, to file a petition of vacatur in circuit court to have certain convictions vacated and the police and court records for such convictions expunged. This bill was incorporated into HB 2393.

Sales and use tax; accommodations for transients. Provides that the term "retail sale" shall include the sale of accommodations to transients for less than 30 days. Under current law, "retail sale" includes such sales to transients for less than 90 days.

Imposition of tax; adjustments and child tax credit. Creates a refundable income tax credit for an individual or married persons filing a joint return whose family Virginia adjusted gross income does not exceed $100,000 for taxable years 2025 through 2029 for each dependent member of the taxpayer's household who is younger than the age of 18. The amount of the credit equals $250 for each such dependent, to be increased by $50 for each taxable year that the Department of Taxation certifies annual revenue growth for the prior year of at least five percent, adjusted for the impact of tax policy changes. Additionally, the bill sets the Virginia deduction in the amount of $930 for each personal exemption allowable to the taxpayer for federal income tax purposes to expire after taxable year 2024.The bill also removes the two percent and three percent tax brackets, while maintaining the current five percent tax to be imposed on income in excess of $5,000 but not in excess of $17,000 and reduces from 5.75 percent to 5.6 percent the tax to be imposed on incomes in excess of $17,000, beginning with taxable year 2025. Finally, the bill provides that the tax imposed on income in excess of $17,000 shall be reduced by one-tenth of a percent for each taxable year between 2025 and 2029 that the Department of Taxation certifies annual revenue growth of at least five percent, adjusted for the impact of tax policy changes.

Classification of land and improvements for tax purposes; localities. Reclassifies improvements to real property as a separate class of real property and authorizes any locality to impose a real property tax on improvements to real property at a tax rate that is different than the rate applied to the land on which such improvements are located. Such rate may exceed, equal, or be less than the tax imposed upon the land on which the improvements are located.Under current law, such classification is allowed only for the Cities of Fairfax, Poquoson, Richmond, and Roanoke. For the Cities of Fairfax, Richmond, and Roanoke, the rate applied is required to be less than the rate applied to land under current law. The City of Poquoson is currently the only locality authorized to impose a rate in excess of the rate applied to land. The bill applies only to taxable years beginning on and after July 1, 2025.

Virginia taxable income; standard deduction; sunset. Removes the sunset on elevated standard deduction amounts for single individuals and married persons that is scheduled to expire for taxable years beginning on and after January 1, 2026.

A BILL to amend and reenact §§ 58.1-416, as it is currently effective and as it may become effective, 58.1-419, 58.1-422.4, and 58.1-422.5 of the Code of Virginia; to amend the Code of Virginia by adding a section numbered 58.1-416.1; and to repeal the third enactments of Chapters 256 and 257 of the Acts of Assembly of 2022, relating to sourcing of certain sales.

A BILL to amend the Code of Virginia by adding in Title 32.1 a chapter numbered 21, consisting of a section numbered 32.1-376, relating to contraception; right to access.

Energy Innovation Pilot Program established. Establishes the Energy Innovation Pilot Program to foster the development of innovative energy projects by allowing Program participants to provide grid services or other beneficial energy measures. Under the Program, a participant, after obtaining State Corporation Commission approval, is not required to comply with specific state statutes and regulations pertaining to the generation, transmission, or distribution of electric energy for sale, except for those laws and regulations that are required for worker safety, public safety, or environmental protection, for a period of five years. The bill includes provisions for application requirements, an approval process, Program exit procedures, a test period extension process, suspension or revocation of Commission approval, consumer protections, Commission investigations, and recordkeeping and reporting requirements.

Income tax; rolling conformity. Provides that when Virginia does not conform on a rolling basis to federal tax laws due to any changes in a single act of Congress with an impact of more than $15 million on revenues in the year in which the amendment was enacted or any of the next four years, such nonconformity shall not be considered for purposes of calculating the nonconformity threshold for all amendments in a year with a cumulative projected impact of more than $75 million in the year in which the amendments were enacted or any of the next four years.