Income tax; pass-through entities; sunset. Removes the sunset for the elective entity level tax on pass-through entities that is currently set to expire after taxable year 2026.
A BILL to amend and reenact §§ 58.1-416, as it is effective and as it may become effective, 58.1-422.4, and 58.1-422.5, as it may become effective, of the Code of Virginia and to repeal the third enactment of Chapter 256 and the third enactment of Chapter 257 of the Acts of Assembly of 2022, relating to corporate income tax; sourcing of sales other than sales of tangible personal property.
State Corporation Commission; Phase I Utility; biennial rate review; reports. Directs the State Corporation Commission to adhere to certain requirements and consider certain enumerated factors in its 2026 review of the rates, terms, and conditions for the provision of generation and distribution services by Appalachian Power. The bill prohibits the Commission from approving a rate of return on common equity that is greater than the rate of return approved by the Commission as part of Appalachian Power's preceding biennial rate review unless Appalachian Power demonstrates that such increase is the approach to maintaining reasonable access to capital that results in the lowest cost to customers. The bill directs the Commission to conduct reviews of Appalachian Power's terms of service and rates for electric transmission and efforts to address rising costs of severe weather events. The bill also directs the Office of the Attorney General to conduct a study of the methods used to determine the cost of equity capital for investor-owned utilities.
Sales and use tax; food purchased for human consumption and essential personal hygiene products. Eliminates the remaining one percent local sales and use tax that is imposed on food purchased for human consumption and essential personal hygiene products. Under current law, no other sales and use tax is applied to such products. The bill requires an equivalent amount of revenue to be distributed to cities and counties on a monthly basis in compensation for the lost tax revenue. The bill has a delayed effective date of January 1, 2027.
Sales and use tax; food purchased for human consumption and essential personal hygiene products. Eliminates the remaining one percent local sales and use tax that is imposed on food purchased for human consumption and essential personal hygiene products beginning on July 1, 2026. Under current law, no other sales and use tax is applied to such products. The bill requires an equivalent amount of revenue to be distributed to cities and counties on a monthly basis in compensation for the lost tax revenue.
Time zone; permanent daylight saving time in the Commonwealth. Provides that the Commonwealth shall observe Eastern Daylight Time (Eastern Standard Time, advanced one hour) year-round upon the enactment by Congress of a law allowing states to observe Eastern Daylight Time year-round.
Emergency custody orders; transportation to treatment center or to residence of the person subject to emergency custody order. Provides that transportation provided pursuant to an emergency custody order shall include, upon completion of emergency medical evaluation or treatment, transportation to an approved treatment center or to the residence of the person subject to the emergency custody order.
Retail sales and use tax; penalty and interest for certain dealers. Provides that any dealer that (i) is an operator of an event venue that neither provides nor offers overnight stays, (ii) fails to make any sales and use tax return and pay the full amount of such tax for those transactions that include both items that are taxable and nontaxable, and (iii) has demonstrated no willful intent to defraud the Commonwealth shall only be liable for penalty and interest amounts calculated upon the amount of such unpaid tax rather than the amount of the lump sum of the subject transactions.
Board of Accountancy; licensing requirements; inactive and emeritus status. Directs the Board of Accountancy to establish "Inactive" and "Emeritus" CPA license statuses for licensees who no longer provide services to the public or services to or on behalf of an employer. The bill requires the Board to develop guidelines to provide active and inactive licensees additional clarity governing the manner in which such licensees should reference autobiographical and biographical information with respect to their CPA licensure to remain historically accurate and compliant with the law and relevant regulations. The bill directs the Board of Accountancy to adopt emergency regulations to implement the provisions of the bill.
Local taxation of real property; effect on rate when assessment results in tax increase; consideration of inflation. Provides that, in determining a locality's total real property tax levies for purposes of determining the rate of levy that the locality shall impose upon such properties in order to produce no more than 101 percent of the previous year's real property tax levies, such real property assessed value shall be reduced by the greater of (i) the change in the United States Average Consumer Price Index for all items, all urban consumers (CPI-U), as published by the Bureau of Labor Statistics for the U.S. Department of Labor, since the fiscal year of the last assessment or (ii) zero.
